Automotive Logistics Market Size, Growth & Forecast 2021-2028

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Automotive Logistics Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Outsourcing and Insourcing), Services (Transportation, Warehousing, Packaging Processes, Integrated Service, and Reverse Logistics), and Sector (Passenger Vehicle, Commercial Vehicle, Tire, and Component)

Publication Month: Feb 2022 | Report Code: TIPRE00003366 | No. of Pages: 195 | Category: Automotive and Transportation | Status: Published

The automotive logistics market is expected to grow from US$ 1,97,630.46 million in 2021 to US$ 3,06,121.54 million by 2028; it is estimated to grow at a CAGR of 6.5% from 2021 to 2028.

Automotive logistics are the services used by automotive manufacturers or suppliers for the movement of vehicles, related parts, and components across different countries or markets in the world. Automotive vendors’ partners and various logistics providers enable the vendors to achieve cost-effective logistics approach. The automotive industry uses logistics services to manage resource procurement, storage, and movement to other locations. The increasing production for vehicles across the globe has driven the growth of the automotive logistics market. This has further led to surging demand for automotive logistics services for the shipment of automotive components, spare parts, and finished vehicles.

The reports cover key developments in the automotive logistics market as organic and inorganic growth strategies. Various companies are focusing on organic growth strategies, such as product launches, product approvals, patents, and events. Inorganic growth strategies activities witnessed in the market were acquisitions, partnerships, and collaborations. These activities have paved the way for the expansion of business and the customer base of market players. These players are anticipated to gain lucrative growth opportunities with the rising demand for automotive logistics in the global market.

Strategic Insights

Report Coverage - Automotive Logistics Market
Report CoverageDetails
Market Size Value inUS$ 1,97,630.46 Million in 2021
Market Size Value byUS$ 3,06,121.54 Million by 2028
Growth rateCAGR of 6.5% from 2021 to 2028
Forecast Period2021-2028
Base Year2021
No. of Pages195
No. of Tables83
No. of Charts & Figures83
Historical data availableYes
Segments coveredType , Services , and Sector
Regional scopeNorth America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scopeUS, Canada, Mexico, UK, Germany, Russia, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverageRevenue forecast, company ranking, competitive landscape, growth factors, and trends
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Impact of COVID-19 Pandemic on Global Automotive Logistics Market

The COVID-19 outbreak caused significant disruptions in the manufacturing of various products, including cars. A sharp decline in the growth of manufacturing of automobile has impacted the growth of the global automotive logistics market. The factory shutdowns, travel restrictions, trade bans, and border lockdowns to contain the outbreak have impacted the manufacturing, supply, and sales of various automobile components. The global automotive industry is one of the major industries experiencing severe disruptions due to supply chain breaks, technology events cancellations, and factory & office shutdowns as a result of this outbreak. The automotive industry is adversely affected by temporary shutdown of 97% of the light vehicle manufacturing plants in North America and Europe.

Automakers across Europe and the US have announced temporary discontinuation of their operations that also includes Detroit's Big Three (General Motors, Fiat Chrysler Automobiles, and Ford Motor Company). Many other auto manufacturers have also extended their shutdown beyond their original dates. Moreover, car sales in China have declined by 92% in the first half of February 2020, as per the World Economic Forum.

From the fourth quarter of 2020 and beginning of 2021, the automotive industry witnessed a significant increase in sales. Thus, the demand for logistics services has also increased, which boosted the automotive logistics market growth in 2021 for international and domestic transport. Significant rise in automotive sector, especially passenger cars as consumer preferred personal vehicles over public transport, has bolstered the automotive logistics market growth.

Lucrative Regions for Automotive Logistics Providers


Lucrative Regions for Automotive Logistics Providers

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Automotive Logistics Market Insights

Increasing Usage of Finished Vehicle Logistic Services

With the increase in vehicle production, logistics service providers are focusing on developing better automotive logistics operations. Thus, the logistics service providers are implementing finished vehicle logistics (FVL) services to manage logistics operations better. FVL operations help gain real-time vehicle location data and analytics, obtain complete control over vehicle movement for logistics service providers, and reduce cost & errors linked with legacy technologies, including manual scanning & radio-frequency identification (RFID). Rhenus Group (a leading logistics service provider) observed a significant decline in 2020 due to COVID-19 impact on the decline in automobile production. The company implemented FVL and automotive logistics services from 2021.

In its first six months of implementation of FVL services, it transported 86 high-performance vehicles in Europe, as per the article published by the Rhenus Group in November 2021. Thereby, utilizing a mixture of air, sea, and road transportation, the FVL solution from Rhenus Group provided a better logistics service to vehicle dealers and original equipment manufacturers (OEMs). Hence, the increasing usage of FVL services is driving the market growth of the automotive logistics market.

Type - Based Market Insights

Based on type, the automotive logistics market is bifurcated into outsourcing and insourcing. In 2021, the insourcing segment led the automotive logistics market, accounting for the largest share in the market.

Automotive Logistics Market, by Type, during 2020–2028 (%)

Automotive Logistics Market, by Type, during 2020–2028 (%)

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Services - Based Market Insights

Based on services, the automotive logistics market is segmented into transportation, warehousing, packaging processes, integrated service, and reverse logistics. In 2021, the transportation segment accounted for the largest market share.

Sector - Based Market Insights

Based on sector, the automotive logistics market is segmented into passenger vehicle, commercial vehicle, tire, and component. In 2021, the component segment accounted for the largest market share.

The players operating in the automotive logistics market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the automotive logistics market. A few developments by key players are listed below:

  • In January 2021, CEVA Logistics accelerated its expansion in Africa with the acquisition of ASTI Group in Morocco. By acquiring ASTI Group, CEVA Logistics will expand its range of export capabilities, specifically reefer services in cooperation with its parent company the CMA CGM Group.
  • In June 2019, CEVA Logistics AG appointed Criss Edwards as Senior Vice President. The company assigned Criss Edwards to manage process improvements and operational excellence of Automotive and Industrial Inbound Logistics sector operations.

Company Profiles

CEVA Logistics AG; DB Schenker; DSV A/S; DHL International GmbH (Deutsche Post DHL Group); GEODIS; Kuehne + Nagel Management AG; Nippon Express Co., Ltd.; Ryder System, Inc.; XPO Logistics, Inc.; and United Parcel Service of America, Inc.

Frequently Asked Questions

The insourcing segment led the automotive logistics market with a share of more than 75% in 2020 and its anticipated to dominate over the forecast period. The advantages of insourcing logistics include a complete visibility of the supply chain operations of shipments. Different initiatives have been undertaken by various companies to propel the proliferation of automotive logistics. For instance, in 2017, McLaren Automotive aims to insource the production of carbon fibre chassis by 2020.
The significant proliferation of vehicle manufacturing, within-country sales, and export of vehicles in China is a prominent part of the Belt and Road strategy. China, being the most significant vehicle manufacturing country in the APAC region, produced 27.8 million vehicles in 2018, which showcases the demand for automotive logistics in the country. The rising demand for Chinese manufactured vehicles in these countries is increasingly pressuring Chinese automakers to partner with logistics companies. This factor is posing a significant business growth opportunity for Chinese logistics companies and international logistics partners, thereby, is anticipated to boost the automotive logistics market in the coming years.
The global automotive sector is experiencing significant demand for vehicles, pressuring the vehicle manufacturers to deliver the required number of vehicles. However, the performance of the vehicle manufacturers increased in 2018 and 2019. The surge in demand for passenger and commercial automobiles across the globe is majorly driven by the increase in disposable income and growth in manufacturing units in developed and developing countries. In European and North American countries, an increase in demand for commercial vehicles is witnessed, which led the European and North American countries to experience a growth in the number of commercial vehicle manufacturing units or assembly units.
Asia Pacific dominated the automotive logistics market in 2020 with a share of more than 40% and is expected to maintain its leading position by 2028.
The major companies in Automotive Logistics includes XPO Logistics, Inc.; United Parcel Service of America; DHL International GmbH (Deutsche Post DHL Group); Ryder System, Inc.; and Kuehne + Nagel International AG.
The transportation services segment led the automotive logistics market with a share of more than 50% in 2020.

The List of Companies - Automotive Logistics Market

  1. CEVA Logistics AG
  2. DB Schenker
  3. DSV A/S
  4. DHL International GmbH (Deutsche Post DHL Group)
  6. Kuehne + Nagel Management AG
  7. Nippon Express Co., Ltd.
  8. Ryder System, Inc.
  9. XPO Logistics, Inc
  10. United Parcel Service of America, Inc
  • Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global automotive logistics market.
  • Highlights key business priorities in order to assist companies to realign their business strategies.
  • The key findings and recommendations highlight crucial progressive industry trends in the global automotive logistics market, thereby allowing players across the value chain to develop effective long-term strategies.
  • Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
  • Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
  • Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution
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