According to a new report published by Introspective Market Research, titled, “Automotive Logistics Market by Application and Packaging Type: Global Opportunity Analysis and Industry Forecast, 2024–2032,”
the global Automotive Logistics Market size was valued at $ 298.21 billion in 2023, and is projected to reach $574.14 billion by 2032, registering a CAGR of 7.55% from 2024 to 2032.
Automotive logistics involves planning, coordinating, and managing the transportation, storage, and distribution of vehicles, parts, and components throughout the automotive supply chain, from factories to dealers or end users.
- Automotive logistics is a key part of the automotive industry that includes transportation, storage and distribution processes. It plays an important role in supply chain management and supports production by ensuring timely delivery of raw materials, components and parts to production units. It also supports the distribution of finished vehicles from factories to dealers or end users by coordinating the transport, storage and delivery of vehicles using different modes of transport. Inventory management is also critical because it implements tracking systems, optimizes warehouse space, and replenishes inventory to meet customer demand while minimizing excess inventory and related costs.
- Reverse logistics processes include returning, repairing, refurbishing or recycling damaged or scrap vehicles, parts, and components. Transportation management includes carrier selection, route optimization, freight consolidation, and shipment tracking and tracing. Warehousing and distribution operations include the storage, processing, sorting, and packaging of automotive products, enabling an efficient flow of goods to various destinations. The globalization of the automotive industry necessitated efficient logistics to manage the flow of parts and finished vehicles. Just-in-time manufacturing, complex supply chains, and high-value goods require specialized services to ensure smooth operations.
- The increasing globalization of the automotive industry means that car manufacturers and suppliers are expanding their operations and supply chains across international borders to take advantage of cost advantages, access new markets, and improve their competitiveness. Car companies are trying to enter emerging markets where the demand for vehicles is growing. By establishing production facilities and distribution networks in these areas, it is possible to gain a wider customer base and increase sales. Globalization allows automobile companies to optimize costs by sourcing components, parts, and materials from countries where production costs are lower. This includes outsourcing production to regions with cheaper labor and sourcing raw materials and components from suppliers around the world.
- Auto logistics can take advantage of the growing trend of online stores and aftermarket services by offering flexible delivery options. This can improve the customer experience by providing convenience and flexibility to customers who do not want to visit traditional retailers or stores. As consumer preferences shift toward online shopping, automotive logistics companies can adapt by offering customized delivery solutions such as specific lead times, expedited shipping options, and real-time tracking. Flexible delivery options can extend market reach beyond traditional retail locations and reach customers in remote or underserved areas where access to retailers or aftermarket stores may be limited. They can also support aftermarket services such as parts, accessories, and service products that improve customer satisfaction and encourage repeat purchases.
Global Automotive Logistics Market, Segmentation
The Automotive Logistics Market is segmented based on Transport Mode, Service Type, Vehicle Type, Distribution and region.
Transport Mode:
The Transport Mode segment is further classified into Roadways, Airways, Maritime, and Railway. Among these, the Roadways sub-segment accounted for the highest market share in 2023. Road transport is an important last mile link that facilitates the movement of vehicles and their parts from production facilities to retailers and end consumers. Compared to other modes of transport such as rail or sea, it offers flexibility, versatility, speed and timeliness. Road transport can reach remote locations, navigate urban areas and accept shipments of different sizes and types. It also offers faster lead times and shorter lead times, making it ideal for just-in-time production schedules and customer delivery expectations. It also offers a door-to-door service that simplifies logistics operations and shortens transportation times. Although the cost per kilometer may be higher for long-distance transport, it is often more cost-effective for short and medium distances. The regulatory environment governing road transport is generally more favorable for logistics operations, and more flexible regulations enable efficient and uninterrupted transport.
Service Type:
The Service Type segment is further classified into Inbound Logistics, Outbound Logistics, and Aftermarket Logistics. Among these, the Outbound Logistics sub-segment is anticipated to show the fastest growth by 2032. Outbound logistics is the process of distributing finished vehicles from production facilities to dealers or end users and involves transporting large quantities of vehicles to different destinations. This is complex and requires coordination with multiple stakeholders, including manufacturers, carriers, retailers and customers. Effective external logistics functions increase customer satisfaction and brand loyalty in the automotive industry.
Automakers are investing in optimizing their outbound logistics networks to minimize costs, shorten delivery times, and maximize vehicle availability. As the global automotive market expands, outbound logistics plays an important role in reaching new customers. Outbound logistics providers offer value-added services such as vehicle preparation, inspection, and customization to customer needs. In addition, aftermarket support is provided by selling aftermarket parts, accessories, and components to dealers and repair centers.
Region:
The Automotive Logistics Market in Asia-Pacific is projected to show the fastest growth by 2032. PAC is experiencing rapid growth in the automotive industry due to rising consumer demand, urbanization and a growing middle-class population. Countries such as China, India and Southeast Asia are emerging as major manufacturing centers producing vehicles for domestic consumption and export. APAC's large market size and strategic location facilitate trade flows between Asia-Pacific countries and other regions. Governments support the automotive industry with policies, incentives and infrastructure development initiatives.
Demand for electric vehicles (EV) and alternative fuel vehicles is also growing in the region. Technological advances in the automotive and logistics industries, such as autonomous vehicles, connected logistics systems and digital supply chain solutions, are changing the way vehicles and components are transported, tracked and managed in the region.
Some of The Leading/Active Market Players Are-
- UPS Supply Chain Solutions (US)
- Penske Logistics (US)
- XPO Logistics (US)
- FedEx Supply Chain (US)
- C.H. Robinson (US)
- Expeditors International (US)
- ArcBest Corporation (US)
- Ryder System (US)
- DHL Supply Chain (Germany)
- DB Schenker (Germany)and Other Active Players
Key Industry Developments
- In July 2023, Penske Truck Leasing announced it had recently completed the acquisitions of Star Truck Rentals, Inc., a transportation services company offering full-service leasing, and commercial truck rental, The acquisition of Star Truck Rentals, Inc. increases Penske's existing fleet by approximately 1,900 vehicles and adds 18 locations throughout Michigan and Indiana. The acquisition of Kris-Way Truck Leasing, Inc. increases Penske's existing fleet by approximately 900 vehicles and adds seven locations throughout Maine and New Hampshire.
- In February 2022, Global logistics company C.H. Robinson and Waymo Via, the trucking and local delivery unit of autonomous driving technology company Waymo, formed a long-term strategic partnership to mutually explore the practical application of autonomous driving technology in logistics and supply chains. The partnership combines the benefits of Waymo’s innovative autonomous driving technology. The collaboration will focus, initially, on running multiple pilots in the Dallas-Houston transportation lane, with Waymo Via autonomous trucks hauling C.H. Robinson’s customer freight. the companies will collaborate to shape the future development and expansion of autonomous driving technology as an additional transportation solution.
Key Findings of the Study
- The global Automotive Logistics Market was valued at $298.21 billion in 2023 and is projected to reach $574.14 billion by 2032, with a CAGR of 7.55% from 2023 to 2032.
- Road transport dominates the logistics segment due to its flexibility, versatility, speed, and timeliness, especially for last-mile delivery and just-in-time production schedules.
- Outbound logistics, focused on distributing finished vehicles, is anticipated to experience rapid growth, driven by efforts to minimize costs, shorten delivery times, and enhance customer satisfaction.
- The Asia-Pacific region is poised for the fastest market growth by 2032, propelled by rising consumer demand, urbanization, a growing middle-class population, and advancements in EVs and digital supply chain solutions.
