Automotive Logistics Market Size, Growth, Forecast 2025

The Automotive Logistics Market is projected to grow from $284.1 billion in 2018 to $472.9 billion by 2025, at a CAGR of 7.55%.

An increase in vehicle production and demand for raw materials and components are the key drivers for the growing logistics market. Also, infrastructural development in developing countries has given a boost to the automotive logistics market.

Opportunities:

• Implementation/Usage of Driverless Vehicles
• Usage of Blockchain for Efficient Logistics Operations

The automotive logistics market is consolidated and dominated by a few global players. The key players are DHL (Germany), XPO (US), SNCF (France), Kuehne + Nagel (Switzerland), and DSV (Denmark).

Increasing global vehicle production has increased the demand for logistics services for the transportation of automotive components, accessories, spare parts, and finished vehicles. Due to low labour costs and taxes, Asia has become the hub of automotive production. It accounts for 55% of the global passenger car and LCV production. In the automotive logistics supply chain, transportation of components, accessories, spare parts, and finished vehicles is more expensive. These vehicles and components are exported to Europe and North America and require a multimodal mode of transport. According to experts, the introduction of electric vehicles will cause major changes in the automotive logistics supply chain. The logistics services for transportation and handling of batteries are expected to account for a significant part of inbound logistics.

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Domestic logistics include the services required to transport automotive vehicles and goods within a country and region. For example, a passenger car manufactured in China and shipped to India would be included in the domestic logistics market of Asia Oceania. The international logistics market in a region includes the logistics services required to transport vehicles from one region to another. For example, a passenger car manufactured in Asia and transported to Europe would be included in the international logistics market of Asia Oceania. Asia Oceania is the largest market for domestic logistics due to large-scale automobile production in China, Japan, and India. Europe is the second-largest market as the EU has facilitated the easy movement of man and materials amongst the EU counties. Similarly, in North America, cars and components manufactured in the US can be easily transported to Canada and Mexico. Thus, domestic distribution is expected to grow at a brisk rate during the forecast period.

Asia Oceania has emerged as a hub for automotive production in recent years because of changing consumer preferences, increasing disposable income of the middle-class, and cost advantages for OEMs. China and Japan have the largest vehicle production in the region. Vehicles are exported from China, Japan, and South Korea to Europe and North America. China is the largest market for automotive logistics because of its huge vehicle production. With the One Belt, One Road (OBOR) initiative, China plans to improve infrastructure connectivity in East Asia, Southeast Asia, South Asia, Central Asia, and Europe. The OBOR project bodes well for the automotive logistics industry as it would lead to seamless connectivity from Asia to Europe.

Key Questions addressed by the report:

• Which logistics services are expected to dominate in the future?
• How are the industry players addressing the challenge of maintaining a balance between on-time delivery and low cost?
• Which mode of transport has the fastest growth in a region?
• How would electric vehicles affect the automotive logistics supply chain?
• What are the key strategies adopted by the players? Which new advancements are the game changers?
• What are the key revenue impacting strategies that would drive the market in the future?
• How are the industry players placed in competitive leadership mapping?

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