Automotive Logistics Market Size By Activity (Warehousing, Transportation [Roadways, Railways, Airways, Waterways]), By Service (Inbound, Outbound, Reverse, Aftermarket), By Distribution (Domestic, International), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025

Published Date: Jun 2019  |  Report ID: GMI3286  |  Authors: Ankita Bhutani

Report Format: PDF   |   Pages: 200   |   Base Year: 2018

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Automotive Logistics Market size valued at over USD 115 billion in 2018 and is estimated to exhibit around 5.5% CAGR from 2019 to 2025.

Automotive Logistics Market

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Increasing vehicle registrations in both emerging and developed countries coupled with organized transportation and warehousing activities of automotive parts are accelerating the automotive logistics market share. For instance, in 2016, vehicle parc in Germany rose to 49 billion with an increase of over 1.7% as compared with 2015. Rising investment for development of transportation fleet to provide reduced emission transportation facilities will further provide a positive outlook for the industry size.

Growing prominence of contract logistics offering integrated warehousing and transportation solutions will prominently augment the industry growth. Industry participants are providing value added services such as GPS and mobile tracking are aiding the vehicle manufacturers for easily track their components. Moreover, presence of numerous logistics service providers offering flexible and secure solutions is strengthening the market revenue over the projected timeframe.

Higher demand for vehicles logistics is attributed towards increasing adoption of battery and plug-in electric vehicles. Free trade and special economic zones (SEZ) are offering tax and logistics benefits for electric vehicles, further promoting the industry share over the forecast timeframe. Growing awareness for reducing the vehicle emissions levels will prositively influencing the alternative fuel vehicles demand.

Proliferating vehicle production across the globe is primarily contributing towards augmenting the automotive logistics market size. For instance, in 2017, passenger vehicle production in India rose to 3.9 billion with an increase of over 7.71% as compared with 2016. Increasing requirement of automobile manufacturers for decreasing the dwell time in delivery of finished vehicles is further propelling the market value.

Rapid development of supply chain management systems coupled with advanced material planning systems are supporting the automotive planning and production activities. Growing demand for responsive supply chains from just in time and regional freight forwarding operations will further support the industry demand. OEMs are utilizing various freight forwarding software for enhancing their logistics operations and maximizing their productivity. However, stringent emission regulations defined by regional government authorities and higher initial investment may restrain the business demand.

Automotive Logistics Market Report Coverage
Report Coverage Details
Base Year:2018
Market Size in 2018:115 Billion (USD)
Forecast Period:2019 to 2025
Forecast Period 2019 to 2025 CAGR:5.5%
2025 Value Projection:170 Billion (USD)
Historical Data for:2014 to 2018
No. of Pages:200
Tables, Charts & Figures:318
Segments covered:Activity, Service, Distribution and Region
Growth Drivers:
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

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Market by Activity

Transportation activity will witness significant growth owing to development of road infrastructure, favourable taxation policies and notable improvement in product delivery time. Moreover, development of autonomous trucks for automotive logistics operations will provide enhanced speed and flexibility of freight flows in the transportation sector. Utilization of connected fleet and digital platforms for transportation is prominently contributing towards market expansion over the forecast timeframe. For instance, in 2017, Ryder incorporated telematics devices for its North American logistics rental fleet to provide enhanced vehicle tracking.

Warehousing activity will foresee substantial growth owing to the improvement in infrastructure for stocking vehicles and auto components. Moreover, growing implementation of environment friendly warehousing solutions and optimized space utilization for storage activities will drive the segment over the forecast timeframe.

Market by Service

Inbound logistics holds significant share in the automotive logistics market owing to the proliferating demand for raw materials and auto components from vehicle manufacturers. Surging production of electric vehicles is prominently inducing the demand for lithium-ion batteries and electric motors, further augmenting the segment growth. Moreover, logistics service providers are gaining contracts strengthening their foothold in the market. For instance, in November 2018, Gefco signed a contract with Plastic Omnium for inbound logistics management of automotive plastic components.

Aftermarket logistics will witness significant share owing to the growing demand for automotive accessories, replacement and spare parts. Rising age of vehicle fleet across the globe will provide potential growth prospects for automotive logistics. Shifting preferences towards vehicle improvisation coupled with growing e-commerce platforms will significantly impact the market revenue over the forecast timeframe. Moreover, integration of production activities and aftermarket provides greater visibility in supply chain and further leads to cost savings through efficient processes.

Market by Distribution

China Automotive Logistics Industry By Distribution

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Domestic distribution in automotive logistics will hold a significant share owing to increasing intra-continent regional transportation of automotive components. Secure and on time delivery of high-quality automotive parts is prominently inducing the domestic distribution demand. Growing preference of tier 1 and tier 2 suppliers to utilize local freight forwarding services for transportation and inventory management will propel the segment size.

International distribution will witness notable growth rate owing to the escalating import and export activities of finished vehicles and automotive products. For instance, in 2018, passenger vehicle imports in U.S. generated USD 178.5 billion accounting 23.1% of the total imports. Moreover, changing foreign exchange rates and import duties will significantly impact the segment size over the forecast timeframe.

Market by Region

Europe Automotive Logistics Market By Country

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Asia Pacific automotive logistics market is expected to dominate the industry size accounting more than 5.5% CAGR till 2025 owing to the increasing vehicle sales and surging new vehicle registrations. Increasing vehicle production facilities across the region will significantly augment the revenue generation opportunities for automotive logistics providers.

Europe will exhibit significant growth owing to the surging demand for electric vehicles across the region. Increasing transportation of finished vehicles coupled with higher concentration of vehicle manufacturers are escalating the regional share. Moreover, growing investments by vehicle manufacturers in expanding warehousing facilities will drive the industry growth.

Competitive Market Share

The automotive logistics industry share is extremely competitive owing to the existence of key players including XPO Logistics Inc., Hellmann, DHL International GmBH, Imperial Logistics, Ryder Systems, GEFCO, CEVA Logistics, Kuehne + Nagel, SCHNELLECKE GROUP AG & CO. KG, and SNCF Group. Key industry players are significantly expanding their reach to major automotive manufacturing participants to enhance their market share. Logistics service providers are maintaining strategic contracts with OEM’s for strengthening their foothold in the market. In May 2019, BMW Group granted automotive delivery contract to Imperial Logistics for road transportation and management with addition of new routes to ensure just-in-time (JIT) and just-in-sequence (JIS) deliveries.

Industry Background

Increase in global automotive production has resulted in the development of logistics and supply chain network. Stringent laws, customs duties and regulations have been formulated to develop the logistics services in favour of service provider and vehicle manufacturing companies. Logistics service providers are continuously engaged in providing quality service to their customers in minimal possible cost and secure transportation.

Frequently Asked Questions (FAQ) :

The market size of automotive logistics valued at around USD 115 billion in 2018.
The industry share of automotive logistics is estimated to exhibit over 5.5% CAGR from 2019 to 2025.
Automotive logistics market demand is propelled by rise in vehicle sales across the globe. Alongside, increasing acceptance of contract automotive logistics schemes and increasing presence of logistics service providers are also supporting industry growth.
Asia Pacific automotive logistics industry is anticipated to showcase maximum growth over the forecast period owing to burgeoning vehicle sales in the region and subsequent rise in new vehicle registrations. Also, surge in number of vehicle production facilities across the region is slated to support market growth.
Accelerating vehicle production has led to towering demand for automotive components and raw materials, which has evoked strong demand for inbound logistics services. Also, augmenting production of electric vehicles has driven the demand for lithium-ion batteries and electric motors, contributing to inbound logistics demand.
Aftermarket services have witnessed a significant high due to increasing age of vehicle fleet around the globe. Vehicle improvisation trends have also influenced aftermarket services demand.

Premium Report Details

  • Published Date: Jun 2019
  • Pages: 200
  • Tables: 308
  • Charts / Figures: 10
  • Companies covered: 10
  • Countries covered: 25

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