According to the new research report published by The Insight Partners, titled “Automotive Logistics Market- Global Analysis and Forecast to 2027”, the global automotive logistics market is expected to reach US$ 370.8 billion in 2027, registering a CAGR of 6.6% during the forecast period 2019-2027.
In 2018, Asia Pacific accounted for the largest market share, growing at a CAGR of 7.4%. There is a significant production of vehicles and automotive components in the region. China, being the most significant vehicle manufacturing country in the Asia Pacific region, produced 27.8 million vehicles in 2018, which showcases, the demand for automotive logistics in the country. Chinese automakers export their vehicles to several countries, including Afghanistan, Brazil, Chile, Egypt, the Philippines, Russia, and Saudi Arabia, among others. The rising demand for Chinese manufactured vehicles in these countries are pressurizing the Chinese automakers to engage themselves in partnering with logistics companies increasingly. This factor is posing a significant business growth opportunity for Chinese logistics companies as well as international logistics partners, thereby, is anticipated to boost the automotive logistics market in the coming years. China accounted for a significant market share in the Asia Pacific automotive logistics market in 2018.
The global automotive logistics market is segmented on the basis of type, services, and sector. Based on the type, the market is segmented into outsourcing and insourcing. On the basis of the services, the market is classified into transportation, warehousing, packaging processes, integrated service, and reverse logistics. The market by sector is fragmented into passenger vehicle, commercial vehicle, tire, and component.
The report also includes the profiles of key automotive logistics companies along with their SWOT analysis and market strategies. In addition, the report focuses on leading industry players with information such as company profiles, components and services offered, financial information of the last three years, the key development in the past five years. The top companies operating in the field of automotive logistics include Deutsche Post DHL Group, Kuehne + Nagel International AG, United Parcel Service of America, Inc., and others. Many other companies operating in the market and are coming up with new technologies and offerings, which is helping the market for the automotive logistics to expand over the years in terms of revenue.
Key findings of the study:
China holds the largest automotive logistics market share in the Asia Pacific region. The Chinese economy comprises of many automobile manufacturers who are continuously focusing towards the development of automotive logistics in the country. For instance, Kuehne + Nagel to create a new joint venture with Sincero, a Chinese company. The joint venture aims to offer logistics services to the automotive sector. It enhances the Kuehne + Nagel’s automotive logistics business for both tier one suppliers by 70% as well as Chinese OEMs. The company has a strong automotive imprint across China through different partnerships with premium and best European brands, such as new dealer distribution centers in Shanghai and Beijing for BMW. Such partnership and collaboration between the market players will propel the automotive logistics market in the forecast period.
The automotive logistics market is occupied with large numbers of established players as well as emerging players across the globe. The key companies functioning in the market include DHL, CEVA Logistics, DB Schenker Logistics, DSV A/S, GEODIS, Kuehne + Nagel International AG, Nippon Express Co., Ltd. Ryder System, Inc., United Parcel Service of America, Inc., and XPO Logistics among others.