Publication Month: Feb 2022 | Report Code: TIPRE00003366 | No. of Pages: 195 | Category: Automotive and Transportation | Status: Published
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.
|Market Size Value in||US$ 1,97,630.46 Million in 2021|
|Market Size Value by||US$ 3,06,121.54 Million by 2028|
|Growth rate||CAGR of 6.5% from 2021 to 2028|
|No. of Pages||195|
|No. of Tables||83|
|No. of Charts & Figures||83|
|Historical data available||Yes|
|Segments covered||Type , Services , and Sector|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Russia, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
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.
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.
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.
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.
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:
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.