Automotive Logistics Market Forecasts to 2028 – Global Analysis By Type (Automobile Parts, Finished Vehicle), Transportation Mode, (Roadways, Railways) and By Geography

Automotive Logistics Market Forecasts to 2028 – Global Analysis By Type (Automobile Parts, Finished Vehicle), Transportation Mode, (Roadways, Railways) and By Geography

According to Stratistics MRC, the Global Automotive Logistics Market is accounted for $393.50 billion in 2022 and is expected to reach $678.58 billion by 2028 growing at a CAGR of 9.5% during the forecast period. Automotive logistics is the entity flow of the automotive producer's vehicles, components, spare parts, and raw materials in the process of automotive purchase, production, and sales.

The United States light vehicle sales peaked in 2016 with 17.46 million-unit sales, and 2018 marked the fourth consecutive year with over 17 million-unit sales. According to industry sources, global light vehicle production unit sales have been remarkable and continue to grow. APAC is expected to register the highest growth rates in terms of production volumes followed by North America. Furthermore, electric vehicles production and sales are increasing at a record pace, which need specialized logistics.

Market Dynamics:

Driver:

Growing effectiveness in finished vehicle logistics (FVL) operations

Growing operational competence, fewer trucks will be essential. For instance, NVD, an Irish vehicle distributor, optimized its logistical process with intelligent solutions. NVD has condensed customer lead times and doubled up its productivity as they can now load 8-10 cars on a truck within 45 minutes. In comparison, more than 3 hours are consumed in this process across Eastern European facilities. Hence, the increasing efficiency in FVL will motivate the market growth rate over the prediction period.

Restraint:

Lack of truck drivers

Freight charges have augmented promptly over the last few years. The unavailability of truck drivers is a significant factor for the higher costs. The trend of decreased driver supply and growing transport demand from automakers is predictable to continue during the forecast period. For instance, according to the German Freight Forwarding and Logistics Association (DSLV), in Germany, 30,000 drivers on average retire every year. However, only around 2,000 fully trained truck drivers are available for replacement which amounts to a shortage of 45,000 drivers in Germany alone.. Hence, these factors may restrain the market growth.

Opportunity:

Digitalization of operations to augment market

The growing application of software-based systems by automakers to achieve the logistical processes has been providing considerable benefits, such as the surging supply chain transparency and operational efficiency. General Motors was an early adopter of the Outbound Logistics Software. The software has provided noticeably better visibility in-vehicle delivery, better truck utilization and is being used to ramp up deliveries to companies’ dealers. Hence, the digitalization of operations will positively influence the growth of the market during the forecast period.

Threat:

Cost and Location

As the intensity of manufacturing upsurges owing to innovation, consumer demand, and technology, vehicle manufacturers will want to see their suppliers working locally. Automotive companies will want their suppliers to be available in every jurisdiction where they have a manufacturing president. Each business location must be evaluated by the following factors: financing, relocation or recruitment of the workforce, rules and regulations of a new jurisdiction, maintaining client production output quotas and quality, optimizing production lines during the transition, closing down one facility and setting up the other, etc., considering cost and location requires effective financial planning, otherwise companies can miss out on profits.

Impact of Covid- 19

The COVID-19 epidemic has caused disorder on the automotive supply chain and manufacturers. Lockdown scenarios as a result of the crisis have encouraged specialists in the automotive sector to estimate that the industry would experience at least a quarter of a lag in the supply chain of automotive equipment. COVID-19 is being explored in light of shifts in consumer demand, consumer behaviour, as well as supply chain re-routing, purchasing power, government involvement, and market dynamics.

The finished vehicles segment is expected to be the largest during the forecast period

The finished vehicles segment is expected to be the largest during the forecast period, owing to increasing demand for electric vehicles and low emission vehicles. Numerous government enterprises to limit the harmful emission are endorsing the sale of electric and battery-powered vehicles across numerous provinces. Furthermore, governments of diverse areas are proposing tax credits and other various profits on the purchase of electric cars. These factors projected to fuel the growth of segment during the forecast period.

The Domestic segment is expected to have the highest CAGR during the forecast period

The Domestic segment is expected to have the highest CAGR during the forecast period. This growth is attributed to government policies in nations like China, India, and Brazil that subsidize manufacturing. Technology transfer, job creation, and GDP contribution are the main reasons for pursuing this method. The key reason behind executing this strategy is technology transfer, creation of employment, and contribution to the GDP. Additionally, another benefit for the economy was the direct injection of cash and the creation of additional jobs for local suppliers of automotive accessories and spare parts.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The US market is held by the existence of large vehicle manufacturing companies; increased investments by numerous companies in the country; and advancements in technology, which are gaining prominence among automotive logistics market trends. Stringent emission regulations leading to light-weighting/engine downsizing has also fuelled the growth of the markets in the province. The increasing demand for light-duty vehicles in North America, stringent emission regulations leading to light-weighting/engine downsizing, and infrastructure growth has led to an increase in passenger car production, which in turn motivate the market growth.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to economic growth in India and China has knowingly boosted the market growth in the province. Moreover, economic renewal and increasing e-commerce penetration significantly contributes for the industry growth in India and China. Furthermore, growing investments in railways, roadways, airways, and maritime trade across emerging nations, such as India, China, and Japan, are anticipated to bolster the demand for warehousing and logistics over the forecast period.

Key players in the market

Some of the key players profiled in the Automotive Logistics Market include CEVA Logistics, BLG LOGISTICS GROUP AG & Co. KG, Hellmann Worldwide Logistics, Ryder System, Inc., GEFCO, CFR Rinkens, Penske Automotive Group, Inc., Imperial Logistics, Expeditors International of Washington, Inc., Nippon Express Co. Ltd., Kerry Logistics Network, Schnellecke group ag& co. Kg .

Key Developments:

In February 2021: CEVA Logistics announced that it completed a full RORO charter for nearly 4,000 cars between Libya and South Korea. These two companies employed a specialist carcarrying RORO vessel as part of a cross-selling initiative.

In April 2021: GEFCO partnered through its subsidiary in the UAE with the leading smart trade enabler, DP World, UAE Region, for new car solutions. It now offers automotive customers a flexible, integrated solution for vehicle storage and handling in covered parking DP World, UAE Region’s flagship, Jebel Ali Port.

Types Covered:
• Automobile Parts
• Finished Vehicle

Transportation Modes Covered:
• Roadways
• Railways
• Maritime
• Airways

Sectors Covered:
• Tire
• Passenger Vehicle
• Component
• Commercial Vehicle

Stages Covered:
• Sub-Assembly Modules
• Raw Materials Stage

Activity’s Covered:
• Warehousing & Handling
• Transportation & Handling
• Integrated Service
• Reverse Logistics

Distribution Channels Covered:
• Domestic
• International

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements