Automotive Logistics Market Analysis

Automotive Logistics Market Analysis

Transportation activity will witness significant growth through 2025 owing to development of road infrastructure, favourable taxation policies and notable improvement in product delivery time. Moreover, development of autonomous trucks for 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 statistics.

The improvement in infrastructure for stocking vehicles and auto components is likely to boost the demand in warehousing activity. Additionally, growing implementation of environment friendly warehousing solutions and optimized space utilization for storage activities will drive the segment growth.

Inbound logistics held prominent automotive logistics market share on account of the proliferating demand for raw materials and auto components from vehicle manufacturers. Surging production of electric vehicles is inducing the demand for lithium-ion batteries and electric motors.

Growing demand for automotive accessories, replacement and spare parts is anticipated to spur the aftermarket logistics segment. 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 propel the market revenue. Furthermore, integration of production activities and aftermarket provides greater visibility in supply chain and further leads to cost savings through efficient processes.

Domestic distribution in automotive logistics will account for significant share by 2025 impelled by increasing intra-continent regional transportation of automotive components. Secure and on time delivery of high-quality automotive parts is 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 demand.

International distribution segment is projected to see notable growth rate through 2025 due to the escalating import and export activities of finished vehicles and automotive products.

Asia Pacific automotive logistics market value is expected to register gain of over 5.5% till 2025 owing to the increasing vehicle sales and surging new vehicle registrations. Rising vehicle production facilities across the region will boost the revenue generation opportunities.

European market is anticipated to exhibit exponential growth driven by the surging demand for electric vehicles across the region. Increasing transportation of finished vehicles along with higher concentration of vehicle manufacturers are escalating the regional market growth. However, growing investments by vehicle manufacturers in expanding warehousing facilities will fuel the industry statistics.