Automotive Logistics Market Research Report Information By Mode of Transport (Roadways, Airways, Maritime and Railway), By Activity (Warehousing & Handling and Transportation & Handling), By Logistics Solutions (Inbound Logistics, Outbound Logistics, Reverse Logistics and Aftermarket Logistics), By Distribution (Domestic and International) and By Region (North America, Europe, Asia-Pacific, and Rest of the World) –Market Forecast Till 2032

Global Automotive Logistics Market Overview

Automotive Logistics Market Size was valued at USD 287.9 Billion in 2022. The Automotive Logistics industry is projected to grow from USD 311.7 Billion in 2023 to USD 590.06 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.30% during the forecast period (2023 - 2032). Growth of e-commerce in automotive sales, sustainable and environmentally friendly solutions, urbanization and last-mile delivery challenges, government regulations and compliance, shift towards autonomous vehicles, aftermarket parts distribution, are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Logistics Market Trends

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  Rising just-in-time manufacturing is driving the market growth

  
  

Just-in-time (JIT) manufacturing aims to cut down on inventory and production lead times by making and delivering goods precisely when they are required in the production process. JIT has had a big impact on the automotive logistics industry, changing how cars and automotive parts are produced, shipped, and delivered. The effectiveness of the industry's supply chain, cost containment, and overall competitiveness have all been severely impacted by this production method.

A more effective and flexible supply chain is another benefit of the JIT technique. To ensure that parts are delivered precisely when they are needed, manufacturers and suppliers must work together to guarantee a constant flow of supplies. The close cooperation and coordination between various supply chain players has affected the adoption of efficient logistics solutions. The operations of transportation and logistics organizations have had to change in order to fulfill just-in-time delivery, with a focus on dependability, punctuality, and responsiveness.

Due to the necessity for precision and dependability in JIT manufacturing, automotive logistics businesses have invested in cutting-edge technologies. Real-time tracking and telematics technologies enable logistics organizations to precisely monitor shipments and map out routes for punctual deliveries. Automated warehouse management programs ensure continuous communication between manufacturers and suppliers and help to maintain accurate stock levels. Cost reduction is yet another critical aspect driving the automotive logistics market because of JIT manufacturing. By reducing inventory and the need for warehousing, manufacturers can significantly reduce the costs associated with keeping extra items. Logistics providers must optimize transportation costs, route efficiency, and load capacity in order to offer cost-effective JIT delivery.

Logistics service providers must make sure that the delivery and transportation procedures are flawlessly integrated in order to achieve these consumer objectives. It's vital to keep in mind that JIT manufacturing presents significant challenges for the automotive logistics industry. More emphasis is being placed on precise delivery dates and low stocks, so there is little room for error. Any snag, holdup, or flaw in the supply chain could have a cascading effect on the production process and cost you money in lost production time. Logistics firms must give priority to risk management, disaster planning, and maintaining strong relationships with suppliers and carriers in order to assure reliability and avoid costly disruptions. Thus, driving the Automotive Logistics market revenue.

Automotive Logistics Market Segment Insights

Automotive Logistics Mode of Transport Insights

The Automotive Logistics Market segmentation, based on mode of transport, includes roadways, airways, maritime and railway. The roadways segment dominated the market in 2022. The condition and expansion of the road network have a direct impact on the road transportation industry. Governments and business entities invest money in creating and modernizing roadways to handle increasing traffic loads, enhance safety, and reduce transit times. With better road infrastructure, it is simpler and more efficient to transport people and goods.

Automotive Logistics Activity Insights

The Automotive Logistics Market segmentation, based on activity, includes warehousing & handling and transportation & handling. The transportation & handling category generated the most income in 2022. Customer expectations for quicker and more dependable deliveries have changed as a result of the development of e-commerce and the adoption of Omni channel retailing. Providers of transportation and handling must adjust to the rise in the number of individual shipments and offer efficient last-mile delivery services.

Automotive Logistics Solutions Insights

The Automotive Logistics Market segmentation, based on logistics solutions, includes inbound logistics, outbound logistics, reverse logistics and aftermarket logistics. The reverse logistics category generated the most income in 2022. Moving used or broken goods back through the supply chain to recycling facilities, remanufacturing facilities, or disposal places, such as returned cars, parts, and components, is known as reverse logistics. How dominant the reverse logistics business is may depend on a number of factors, such as customer return policies, the frequency of product recalls, and environmental regulations that favor recycling and sustainable practices.

Automotive Logistics Distribution Insights

The Automotive Logistics Market segmentation, based on distribution, includes domestic and international. The domestic category generated the most income in 2022. Increased consumption and the requirement for items to be delivered to urban centers are results of growing populations and urbanization. The domestic market plays a critical role in making sure that goods efficiently reach their intended destinations.

Figure 1: Automotive Logistics Market, by Distribution, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Automotive Logistics Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Asia-Pacific Automotive Logistics Market dominated this market in 2022 (45.80%). Due to the presence of several suppliers and production facilities around the area, Asia Pacific's automotive supply chains are frequently lengthy and complex. To ensure smooth transfer of parts and components, effective logistics solutions are needed. Moreover, China’s Automotive Logistics market held the largest market share, and the Indian Automotive Logistics market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Automotive Logistics Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Automotive Logistics market accounts for the second-largest market share. Numerous well-known automakers are based in Europe, and the sector is widespread throughout the continent. Due to this diversity, the logistics environment is complex and calls for well-organized transportation and handling services. Further, the German Automotive Logistics market held the largest market share, and the UK Automotive Logistics market was the fastest growing market in the European region

The North America Automotive Logistics Market is expected to grow at the fastest CAGR from 2023 to 2032. The automobile sector is well-established in North America, where car ownership is widespread. The automotive logistics industry is driven by the need for efficient vehicle handling and local transportation. Further, the U.S. Automotive Logistics market held the largest market share, and the Canada Automotive Logistics market was the fastest growing market in the North America region.

Automotive Logistics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Automotive Logistics market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Automotive Logistics industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Automotive Logistics industry to benefit clients and increase the market sector. In recent years, the Automotive Logistics industry has offered some of the most significant advantages to medicine. Major players in the Automotive Logistics market, including DB Schenker (Essen, Germany), BLG LOGISTICS GROUP AG & Co. KG (Bremen, Germany), CEVA Logistics (Baar, Switzerland), Kuehne+Nagel (Feusisberg, Switzerland), Expeditors International (Washington, U.S.), DSV (Hedehusene, Denmark), XPO Logistics, Inc. (Connecticut, United States), Deutsche Post AG (Bonn, Germany), SINOTRANS Limited (Beijing, China), C.H. Robinson Worldwide, Inc. (Minnesota, United States), GEFCO (Paris, France), Ryder System, Inc. (Florida, U.S.), Schnellecke group ag & co. Kg (Wolfsburg, Germany), Penske Automotive Group, Inc. (Michigan, U.S.) and others, are attempting to increase market demand by investing in research and development operations.

Expeditors International of Washington Inc (Expeditors) is a business that offers logistics services. It offers specialized and integrated global transportation solutions through air and ocean freight transportation as well as customs brokerage. The company also offers specialized consulting and logistics solutions in addition to international logistics services like order management, customs brokerage, time-definite shipping, warehousing, and distribution, cargo insurance, specialized cargo monitoring and tracking, temperature-controlled shipping, and cargo insurance. Purchasing cargo space on a volumetric basis from carriers like airlines and shipping corporations, expeditors then resell it to customers. It offers logistics and supply chain management solutions for a range of organizations, including those in the automotive, aerospace, beer, wine, and spirits, fashion, healthcare, manufacturing, retail consumer products, oil and energy, and technology sectors. The company keeps full-service offices in the Americas, North Asia, South Asia, Africa, and the Middle East. The company's headquarters are in Seattle, Washington, in the US.

C.H. Robinson Worldwide Inc (CHRW) provides third-party logistics services. It offers freight transportation services using trucks, ships, trains, and airplanes. Businesses of all sizes working in a wide range of industries can take advantage of its logistics solutions and freight transportation services. The company's three reportable business segments are North American Surface Transportation (NAST), Global Forwarding, and All Other and Corporate. It offers its services in North America, South America, Asia, and Oceania. In FY2022, CHRW handled 20 million shipments for 100,000 customers using 96,000 contracted carriers.

Key Companies in the Automotive Logistics market include

• DB Schenker (Essen, Germany)


• BLG LOGISTICS GROUP AG & Co. KG (Bremen, Germany)


• CEVA Logistics (Baar, Switzerland)


• Kuehne+Nagel (Feusisberg, Switzerland)


• Expeditors International (Washington, U.S.)


• DSV (Hedehusene, Denmark)


• XPO Logistics, Inc. (Connecticut, United States)


• Deutsche Post AG (Bonn, Germany)


• SINOTRANS Limited (Beijing, China)


• H. Robinson Worldwide, Inc. (Minnesota, United States)


• GEFCO (Paris, France)


• Ryder System, Inc. (Florida, U.S.)


• Schnellecke group ag & co. Kg (Wolfsburg, Germany)


• Penske Automotive Group, Inc. (Michigan, U.S.)

Automotive Logistics Industry Developments

June 2021: Jaguar Land Rover (JLR) has appointed Unipart Logistics on a five-year deal to manage its global parts logistics facility at Appleby Magna in the UK Midlands. The 270,000 square meter factory will supply aftermarket parts when it opens in 2022. Unipart will be in charge of managing distribution, parts packing, branded product operations, and customer support.

Automotive Logistics Market Segmentation

Automotive Logistics Mode of Transport Outlook

• Roadways


• Airways


• Maritime


• Railway

Automotive Logistics Activity Outlook

• Warehousing & Handling


• Transportation & Handling

Automotive Logistics Logistics Solutions Outlook

• Inbound logistics


• Outbound logistics


• Reverse logistics


• Aftermarket logistics

Automotive Logistics Distribution Outlook

• Domestic


• International

Automotive Logistics Regional Outlook

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  North America
  
  
  
  • U.S.
  
  
  • Canada
  
  
  
  


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  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


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  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


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  Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America