Home / Press Release / Automotive Logistics Market to Grow at an Estimated CAGR of 7.5% During the Forecast Period 2022-2030

Automotive Logistics Market to Grow at an Estimated CAGR of 7.5% During the Forecast Period 2022-2030

During the forecast period of 2023 to 2031, the Automotive Logistics Market is projected to increase at a CAGR of 7.5%. Increasing automobile manufacturing, upcoming infrastructure projects, and the advent of electric vehicles are the key factors driving market expansion. Logistics in the automotive industry include the management of incoming transportation of raw materials and components, garage transportation management of the production process, and transportation management of vehicles and spare parts, including distribution processing delivery, object purchasing, loading and unloading, storage, transportation, and information processing. Due to the rapid expansion of the automobile industry, supply chain costs must be reduced through automotive logistics.

Domestic logistics includes the services required to transfer vehicles and goods inside a country or region. The Asia-Oceania domestic logistics market might encompass, for example, a passenger automobile manufactured in China and shipped to India. A region's international logistics market includes the logistical services required for interregional auto transport. The global logistics market of Asia Oceania could include, for example, an automobile manufactured in Asia and shipped to Europe. Since China, Japan, and India produce so many autos, Asia Oceania is the largest domestic logistics market. Due to the EU's facilitation of the free movement of people and products among its member states, Europe is the second largest market in the world. Similarly, in North America, autos and components manufactured in the United States may be easily transported to Canada and Mexico. Consequently, it is anticipated that domestic distribution will expand significantly during the forecasted time.

Improving labor division will be a future trend in the automotive supply chain. Manufacturing enterprises will be separated from distribution and component manufacturing. Additionally, a portion of logistical management responsibilities will be shifted to third-party logistics (3PL) to reduce capital expenditures and operating expenses. Using a 3PL enables organizations to gather more market intelligence, extend operations to all corners of the globe without the usage of assets, and enter international markets more swiftly. Therefore, the 3PL model will become the dominant form of logistics in the automotive industry.

Browse for report at : https://www.acutemarketreports.com/report/automotive-logistics-market

In addition to providing warehouse services to original equipment manufacturers and Tier I/Tier II component manufacturers, the key players in the logistics sector are also warehouse operators. These services enable original equipment manufacturers (OEMs) can implement just-in-time (JIT) and just-in-sequence (JIS) assembly line production. The need for these services is dependent on vehicle manufacturing. As a result, regions with stronger vehicle production will have a larger share of the warehousing market. In addition to storage, logistics service companies offer OEM assembly services. In Ghent, Belgium, for instance, DSV provides Volvo Cars with component assembly and storage services. The factory produces the Volvo XC60, S60, V40, and V40 Cross Country. As a result of increased automobile production and component pre-assembly, it is estimated that warehouses would have the greatest growth throughout the forecast period.

As operational efficiency rises, fewer cars will be necessary. Irish automotive distributor NVD, for instance, employed innovative technologies to optimize its shipping operation. NVD is now able to load eight to ten autos onto a truck in 45 minutes, thereby lowering client lead times and boosting company output. In Eastern European facilities, the duration of this procedure exceeds three hours. Increasing FVL efficiency will hence fuel market growth over the projection period.

Automakers' greater embrace of software-based tools to manage logistical procedures has resulted in significant benefits, such as improved supply chain visibility and operational efficiency. For instance, General Motors was an early adopter of the Outbound Logistics Software. During the pandemic-induced crisis, the program (which includes onboard asset telematics and geofencing technology, among other technologies) has dramatically improved vehicle delivery visibility, increased truck utilization, and is being employed to increase company dealer deliveries. Therefore, the digitalization of operations will have a positive effect on market expansion during the forecast period.

In recent years, freight costs have increased substantially. The shortage of truck drivers is a significant contributor to the rising costs. During the projected time, it is anticipated that the trend of decreasing driver supply and rising transport demand from manufacturers will continue. The German Freight Forwarding and Logistics Association (DSLV) reports that over 30,000 drivers retire annually in Germany. However, only about 2,000 fully-trained truck drivers are available for replacement, resulting in a shortage of 45,000 truck drivers in Germany alone. Likewise, according to the American Trucking Association, there is a shortage of nearly 60,000 certified truck drivers in the United States. As a result, these obstacles may hinder the expansion of the automobile logistics industry.

By activity, the market is divided into transportation & handling and storage & handling. Transportation & handling maintained the largest market share in 2021. Companies invest extensively in data-driven solutions for transportation efficiency. Certain telematics solutions, for example, can effectively manage a truck's route, and if there is a delay in the delivery of components, the plant can be notified in real-time. Therefore, manufacturers can promptly manage and rectify the situation, preventing a plant stoppage. Consequently, these factors will encourage the growth of this market segment. The segment of warehousing & handling is predicted to exhibit a greater CAGR throughout the projection period. This category's growth can be attributed to the increased demand for light commercial vehicles in emerging economies and the rising demand for warehouse and storage facility construction.

Based on distribution, domestic and international markets are categorized. The domestic market held the largest market share in 2021. There is an increase in the number of local manufacturing-encouraging policies in countries like India and China. In addition, the European Union's (EU) facilitation of the free movement of auto parts and raw materials across EU nations is fueling the growth of this market category. The international market sector is expected to witness substantial growth. The rise of this market sector will benefit from the increased demand for luxury vehicles and the decrease of import duties in developing countries.

By kind, the market is divided into finished automobiles and auto parts. In 2021, the market was dominated by the vehicle parts industry. This sector accounts for the revenues earned by aftermarket dealers and original equipment manufacturers through spare parts transportation management. This segment's rapid growth is supported by the rising usage of omnichannel strategies, such as e-commerce, which enable businesses to offer a diverse selection of products with prompt delivery. Moreover, the tightening of environmental regulations is boosting demand for aftermarket parts to upgrade existing vehicle fleets. As a result, these variables will drive the growth of this category over the forecast period.

The segment of completed vehicles is also predicted to witness significant market growth. The electric car market is fueled by the zero-emission vehicle standards of a number of wealthy nations (EVs). Government incentives such as tax exemptions, tax credits, purchase rebates, and fee waivers (for parking and charging, among others) also contribute to the increasing demand for electric vehicles. It is projected that these factors will contribute to the segment's growth throughout the projection period.

By mode of transport, the market is divided into roads, railroads, canals, and airways. The highways industry will dominate the market in 2022. Low costs and the deployment of intelligent transport systems in regions such as Europe, which permit a high-level connection, platooning, and the potential for automated driving, are propelling the growth of the highways segment. The marine market segment is anticipated to have robust expansion due to the rising availability of high-performing port services and high-quality infrastructure that permits the removal of superfluous charges for transport operators, shippers, and consumers.

Especially in emerging economies such as China and India, the vehicle logistics industry has undergone remarkable growth. In keeping with the worldwide average, Asia Oceania is projected to see an annual growth rate of 7-8% during the next eight years. The region's automotive production has expanded due to low wages, an abundance of raw resources, expanding demand for vehicles, and the presence of major OEMs such as Toyota (Japan), Maruti Suzuki (India), SAIC (China), Honda (Japan), Geely (China), and Hyundai (South Korea). Multiple European and North American nations import autos from China, Japan, India, and South Korea. The Belt and Road Initiative, which aims to strengthen infrastructure, trade, and investment ties between China and a number of other countries, is expected to be one of the key projects driving the market in the Asia-Oceania region. In an effort to strengthen its logistical services, the Indian Railways is establishing six dedicated freight corridors (DFCs) spanning 2,800 kilometers throughout the country's eastern and western regions.

In 2021, Asia-Pacific had the largest market share for automobile logistics. The exponential growth of vehicle production in this region is attributable to causes such as the rising demand for automobiles, the availability of raw materials, and low wages. Furthermore, the presence of major OEMs such as Honda, Toyota, Hyundai, and BYD that are focused on localizing their production to reduce operational costs and export vehicles to various countries and regions, including the United States and Europe, is also responsible for the growth of the automotive industry in this region.

To improve the supply chain, OEMs have an increasing need for transportation, assembly, and storage logistics services. In June 2019, GEFCO, for instance, formed a new company in Chongqing that specializes in the import and export of autos by rail between Europe, Russia, and China, as well as the extension of all other GEFCO logistics operations in the central region of China. Consequently, these factors are accountable for the market's exponential growth in this region.

Europe is also expected to have substantial market expansion. The rise of the e-commerce business, the emphasis of regional original equipment manufacturers on rearranging supply chains to reduce dependence on a single region, and the increased demand for electric vehicles will all contribute to the expansion of the European market. During the predicted period, it is anticipated that North America would sustain consistent growth. This region's market is expanding due to the optimized performance of multimodal logistical chains and increased infrastructure, which are cutting logistical costs.

The market for automotive logistics is fragmented, with huge worldwide corporations, small and medium-sized local players, and a handful of market-share-holding firms. The majority of global logistics companies have a car logistics division to suit market demands. In addition, local rivals are enhancing their inventory management, service offerings, product handling, and technology expertise. The market competition among third-party logistics (3PL) service providers is intensely centered on supply chain capacity and dependability. By adding value to their services, firms might differentiate their offerings. In terms of speed, delivery, etc., an increase in e-commerce sales presents both opportunities and challenges for logistics organizations. The market leaders include DHL (Germany), XPO (United States), SNCF (France), Kuehne + Nagel (Switzerland), XPO (United States), DSV (Denmark), Ryder (United States), CEVA (United Kingdom), Imperial (South Africa), Panalpina (Switzerland), and Expeditors (US). Expansions, the creation of new products, and collaborations are among the most prevalent market tactics. Kuehne & Nagel, for example, has expanded its regional network in Central Asia in order to offer a full-service portfolio to local and international customers from all of the region's major industries. To gain a greater share of the market in emerging markets, GEFCO, DSV, Keuhne+Nagel, Penske Automotive Group, Inc., Ryder System, Inc., DB Schenker, and CEVA are engaged in productive alliances and increasing merger & acquisition activities. GEFCO partnered with Polestar, an electric performance car manufacturer, in March 2021 to deliver electric automobiles to individual clients in Shanghai and Beijing. Similarly, CEVA Logistics renewed its contract with Volkswagen to operate the auto parts distribution center in Vinhedo, Brazil, in April 2021. Since 2010, CEVA has successfully operated the site, which is the largest of its kind in Latin America at 132,000 square meters. Therefore, growth in profitability with a focus on international expansion will benefit the standing of market leaders.

Contact Information
24/7 Research Support
Phone: +1-855-455-8662
Get in Touch with us
join us on Facebook
Follow us on Twitter
Follow us on Rss
Add us on Google +