Automotive Logistics Market Size to surpass $170bn by 2025
Published Date: June 18, 2019 Authors: Ankita Bhutani
Automotive Logistics Market size is set to surpass USD 170 billion by 2025; according to a new research report by Global Market Insights, Inc.
Increasing freight volumes owing to the escalating vehicle production and registrations across the globe are providing strong growth prospects over the projected timeframe. For instance, in 2017, light commercial vehicle production rose to 10.89 million with an increase of 4.5% as compared with 2016. Increasing demand for battery and plug in electric vehicles is positively influencing the automotive logistics market revenue over the forecast timeframe. Increased safety and handling requirements of batteries and electric motors will promote the secure transportation activities.
Utilization of contract logistics is prominently enhancing the productivity of automotive supply chain activities. Logistics service providers are offering specialized services and secure transportation solutions further escalating the automotive logistics market size over the study timeframe. Moreover, increasing inclination of automotive OEM’s towards utilizing freight forwarding services offering shorter transit time and cost-effective solutions will play a vital role in intensifying the market value over the projected timeframe.
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Expansion of manufacturing facilities across the globe are providing potential opportunities to logistics service providers for enhancing their market share. Growing requirement for efficient supply of raw materials and finished components by OEM’s is significantly inducing the demand for automotive logistics. Moreover, growing prominence of IoT in automotive logistics will provide potential opportunities for optimizing the supply chain operations.
Rapid advancements in autonomous vehicles and drone technologies are providing a positive outlook for the industry growth. For instance, in May 2019, Toyota announced the incorporation of six autonomous trucks for improved reliability in warehousing applications. Growing requirements for improving the transportation efficiency and inventory management will further support the market growth.
Browse key industry insights spread across 200 pages with 308 market data tables & 10 figures & charts from the report, “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” in detail along with the table of contents:
Based on activity type, the market is categorized into warehousing and transportation. Logistics service providers are continuously expanding their business operations by establishing contract with automotive OEM’s. For instance, in October 2016, DB Schenker started the warehouse management for aftermarket parts of Volkswagen Group in India. Moreover, improving infrastructure facilities are further supporting the industry size over the forecast timeframe.
Automotive logistics market based on services is segmented into inbound logistics, outbound logistics, reverse logistics and aftermarket. Aftermarket logistics is projecting a higher visibility owing to rising freight volumes of automotive spare parts and accessories. Increasing demand for service parts availability coupled with strong aftermarket supply chain networks will support the industry over the projected timeframe.
Based on distribution channel, the automotive logistics industry is categorized into domestic logistics and international logistics. International logistics with witness a substantial growth owing to the increasing import and export activities of finished vehicles and automotive components. Moreover, international trading laws and changing import duties will significantly impact the market value.
Asia Pacific is anticipated to witness a significant growth in the automotive logistics sector over the forecast timeframe. This can be credited to strong presence of vehicle manufacturers and production facilities. Surging adoption of electric vehicles will provide a positive outlook for the industry size. For instance, in 2018, China’s electric cars sales rose to 1.3 million vehicles with an increase of over 62% as compared with 2017.
The key industry participants in the automotive logistics market include CEVA Logistics, DHL International GmBH, XPO Logistics, Inc. SNCF Group, Kuehne + Nagel, DSV, Ryder Systems, Inc., Imperial Logistics, Hellmann, and SCHNELLECKE GROUP AG & CO. KG. The companies are adopting different strategies such as mergers & acquisitions, new product developments, joint ventures and other form of partnerships to increase their market share. For instance, in March 2015, Metrogistics completed its merger with McNutt Automotive Logistics for offering asset based and full range of logistics services to vehicle manufacturers and dealers.
The automotive logistics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD billion from 2013 to 2025, for the following segments:
The above information is provided on a regional and country basis for the following:
- North America
- Asia Pacific
- South Korea
- Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa