Automotive Logistics Market Size, Share & Trends Analysis Report By Activity (Warehousing, Transportation), By Type, By Logistics Solution, By Distribution, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global automotive logistics market size was valued at USD 141.8 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2027. Automotive logistics is referred as warehousing and transportation of finished vehicles and their components and systems in the automotive supply chain. Automotive logistics provide seamless warehousing services and transportation of spare parts, production material, and finished vehicles to ensure a smooth flow of operations. Factors such as the emergence of logistics services, technological advancements, and increasing outsourcing across the globe contribute to the growth of the market. Earlier, automotive logistics was a fragmented activity of transportation and warehousing, which has evolved into integrated logistics management, thereby supporting the market growth over the forecast period.

The requirement of an effective customized logistic service as per the automotive industry is emerging as a differentiating factor among logistics service providers, which is also expected to play a crucial role in establishing their competitiveness. Key automotive logistics service providers are also making strategic utilization of technologies, such as Big Data and connected ship, to enhance their supply-chain management processes. These technologies aid in the reduction of labor costs by making use of predictive assessment on routing, thereby eliminating delays in shipments.

The market growth is profoundly dependent on the demand generated for the automobile industry. The automobile industry is expected to witness substantial growth in the future owing to improved standards of living, coupled with rising spending capacity across the globe. This change in lifestyle has led to an increase in automotive sales across emerging economies, which is expected to boost the market growth over the forecast period. Moreover, need for automobile spare parts for massive on the road existing automobile fleet in the aftermarket is expected to drive the market over the forecast period.

Earlier, automobile manufacturers incurred higher cost of inventory owing to the storage of automotive components and systems for long term automobile production.  To overcome this challenge, the automobile manufacturers adopted strategies such as Just in time (JIT) and world-class quality, which make automotive logistics an integral part of the production. JIT eliminates the cost related to all sources, unnecessary inventory, and scrap in production. Implementation of JIT is done with the help of an effective supply chain and an efficient logistics system. Moreover, world-class quality is more focused on the quality of products and services. Implementation of Just in time and world-class quality has significantly boosted automotive logistics demand in recent years and is expected to drive the market over the forecast period.

Activity Insights

The transportation segment dominated the market with a revenue share of 82.2% in the year 2019 and is expected to maintain its lead over the forecast period. Transportation services are one of the critical services in automobile manufacturing. This is because automobile manufacturers source the automobile parts from different companies located across the globe and sell the final finished automobile in another country. Furthermore, production strategies such as just-in-sequence (JIS) and just-in-time present opportunities for logistics service providers.

Warehousing services are expected to exhibit the highest CAGR in terms of revenue over the forecast period. This growth can be attributed to the growing demand for capacity expansion in storage facilities and warehouses. Moreover, increasing demand for automobiles and the need for systematic storage and effortless material handling are anticipated to support the warehouse segment growth by 2027. Furthermore, increasing awareness concerning optimum utilization of spaces throughout supply channels, such as stockyards, storage utilities, and distribution centers, is likely to aid the segment growth.

Distribution Insights

The domestic segment held the largest share of 62.2% in 2019 and is expected to expand at the fastest CAGR over the forecast period. This growth can be attributed to supportive government policies to subsidize manufacturing in countries, such as China, India, and Brazil. The key reason behind implementing this strategy is technology transfer, creation of employment, and contribution to the GDP. Another benefit for the economy was the direct injection of cash and the creation of additional jobs for local suppliers of automotive accessories and spare parts.

Furthermore, shifting preference of automobile manufacturers towards local manufacturing of automobile and automobile parts to minimize operational cost is expected to drive the domestic automotive logistics segment. Moreover, rising logistics cost, inventory cost, and intense competition have compelled the automobile manufacturers to shift their manufacturing/ assembly plants at a local location. Furthermore, relaxation in import duties and taxes and flexible cost structures of transportation services are fueling the growth of the domestic logistics segment. Moreover, growing logistics activities due to increased consumer demand and huge trucking networks are anticipated to further propel the growth of the segment over the forecast years.

Type Insights

Based on the type, the market for automotive logistics has been segmented into finished vehicle and automobile parts. The automobile parts segment led the market and accounted for more than 76% share of the global revenue in 2019. The automobile parts segment includes the revenue generated from the logistics of spare parts from both the automobile manufacturer as well as aftermarket. Furthermore, stringent government regulations related to carbon emission have generated the need for upgraded standard aftermarket parts for the existing vehicle fleet, thus supporting the growth of the segment. Moreover, an increase in the adoption of e-commerce strategy has strengthened the air transportation capacity and fueled the growth of automotive logistics across various countries, thereby propelling the demand for logistics services in the automobile industry.

The finished vehicle segment includes the revenue generated from the logistics of the finished vehicle. The finished vehicle segment is estimated to expand at the highest CAGR of 7.0% over the forecast period owing to the rising demand for low emission vehicles and electric vehicles. This demand is attributed to favorable government initiatives and federal incentives, which include the availability of tax credit from the purchase of these vehicles. Rising demand for electric vehicles is also expected to boost the finished vehicle segment growth over the forecast period.

Logistics Solution Insights

The inbound logistics solution segment led the market with a 66.8% share of the global revenue in 2019 and is expected to witness the fastest growth over the forecast period. Increasing emphasis on developing a logistics infrastructure and a public-private partnership model to facilitate ease of transportation from manufacturers to local warehouse is expected to drive the inbound logistics segment by 2027. The inbound logistics include storage, transportation, and dissemination of automobile and spare parts to local warehouses whereas the outbound segment consists of the revenue generated through transportation of automobile and spare parts from the warehouse to end user.

Furthermore, a growing number of government initiatives and increasing investments in the development of roadways transportation networks to enhance freight forwarding have led suppliers to adopt roadways transportation modes. A consistent objective to improve logistics infrastructures and growth in the new road-concession model are boosting the growth of inbound logistics. High cost of transportation through roads owing to road taxes and permits is expected to challenge the growth of inbound logistics through roads. However, the adoption of centralized taxation policy, such as GST in India, is expected to reduce the taxation burden on logistic service providers.

Regional Insights

Asia Pacific captured more than 30.0% share of the total revenue in 2019 and is expected to witness the fastest growth over the forecast period. Economic growth in China and India is strengthening regional market growth. Key factors such as rising e-commerce penetration and economic revival are contributing to the industry growth in India and China. Furthermore, increasing ongoing investments in airways, roadways, railways, and maritime trade across emerging countries, such as China, India, and Japan, are expected to bolster logistics and warehousing demand over the forecast period. Moreover, the COVID-19 pandemic, which recently spread across Asia Pacific countries, especially China, has profoundly impacted the steady growth of the regional market. However, considering the fact that China is coming close to its recovery phase, it is anticipated the impact of this pandemic on the growth of China's market would be at a lesser rate over the forecast year.

Europe is anticipated to witness slower growth compared to Asia Pacific over the next few years owing to ongoing concerns relating to talent management and labor shortage. However, the sector is expected to be revived on account of substantial investment and tenant demand in the regional automotive logistics industry. Restructuring of supply chain activities and expanding the e-commerce sector is expected to positively impact industry growth over the next few years. However, the COVID-19 pandemic, which recently spread across European countries, especially Italy, U.K., Spain, Germany, is expected to negatively impact the regional market growth.

Key Companies & Market Share Insights

The market is oligopolistic and is dominated by key players. Companies are providing technology-driven services such as real-time tracking of shipments and route optimization. Moreover, key market players are entering into collaborations and engaging in mergers and acquisitions of other automotive logistics companies to capture a greater market share. Furthermore, the market participants are focusing on improving the automation technology to attain a competitive edge among end-users. Some of the prominent players in the global automotive logistics market are:

• BLG LOGISTICS GROUP AG & Co. KG

• CEVA Logistics

• GEFCO

• Hellmann Worldwide Logistics

• Penske Automotive Group, Inc.

• CFR Rinkens

• Expeditors International of Washington, Inc. 

• Imperial Logistics

• Kerry Logistics Network

• Nippon Express Co. Ltd. 

• Ryder System, Inc.

• Schnellecke group ag & co. Kg

Automotive Logistics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities for each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive logistics market report on the basis of activity, type, distribution, logistics solution, and region:

• Activity Outlook (Revenue, USD Million, 2016 - 2027)

  • Warehousing

  • Transportation

    • Roadways

    • Airways

    • Maritime

    • Railways

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Finished Vehicle

  • Automobile Parts

• Distribution Outlook (Revenue, USD Million, 2016 - 2027)

  • Domestic

  • International

• Logistics Solution Outlook (Revenue, USD Million, 2016 - 2027)

  • Inbound

  • Outbound

  • Reverse

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa