North America Automotive Logistics Market Growth and Forecast by 2027

Automotive logistics market in North America is expected to grow from US$ 53.11 Bn in 2018 to US$ 89.92 Bn by the year 2027 with a CAGR of 5.7% from the year 2019 to 2027.

The rising number of automobile manufacturing plants across the globe is driving the growth of the automotive logistics market. The automobile manufacturers pose significant business opportunities for automotive logistics providers, which is further anticipated to drive the automotive logistics market growth. Moreover, the incorporation of smart technologies and autonomous vehicles is anticipated to bolster the growth of automotive logistics market in the years to come. The automotive industry is progressing at a significant rate attributing to the increasing demand for automobiles and automotive components across the globe. The automotive logistics companies are expected to witness lucrative growth opportunities in the coming years with a further increase in vehicle demand. However, the integration of advanced technologies would foster the businesses of the logistics companies transporting automobiles and automotive components. Cloud technology is one of the key technologies which is anticipated to furnish the logistic companies growth in the years to come. Cloud technology offers several benefits to the transportation company, such as better customer experience in terms of speed, lower prices, and the ability to track goods. Cloud technology facilitates logistics service providers to manage their businesses efficiently, allowing continuous communication with suppliers and customers. Further, the autonomous vehicles segment especially, the passenger car segment is gaining substantial popularity in recent time, and several automobile manufacturers are testing autonomous trucks. The autonomous trucks would benefit the logistics companies as well as the suppliers with enhanced safety and shorter lead times.

The warehousing segment dominated the automotive logistics market in the year 2018, with the second highest market share. The automotive logistics market on the basis of services is segmented into transportation, warehousing, packaging processes, integrated service, and aftermarket logistics/reverse logistics. The logistics services consist of numerous services which are used to deliver product from one to another. Use of advanced WMS, integrated supply chain, TMS, disposable & returnable packaging solutions are the essential logistics services which maintain the balance between demand and supply of automotive. The criticality of the warehouses that act as the nodes in the entire supply chain defines the importance of warehousing functions by the logistics players. The emergence of warehousing management solutions has proliferated the growth of warehousing functions by the logistics companies.

The US has led the North America Automotive Logistics market in 2018 with the highest market share and is expected to continue its dominance during the forecast period. The US automotive sector is growing rapidly, with increasing capital growth and higher exports. The significant market initiative has been taken by both the carmakers and logistic service providers across the automotive industry in the US. For instance, recently, BMW signed a collaboration agreement with Braidy Atlas for the sustainable supply of aluminium to its US assembly plant. Further, the US-based automotive parts distributor, the Genuine Parts Company, acquired German parts supplier the Hennig Fahrzeugteile Group. Thus, the increasing market initiatives in the US towards expanding vehicle manufacturing capabilities as well as transporting auto parts to different regions, facilitate significant opportunities for automotive logistics market to grow in the coming years. The figure given below highlights the revenue share of the Mexico in the automotive logistics market in the forecast period:

Maxico Automotive Logistics Market Revenue and Forecasts to 2027 ( US$ Mn)

NORTH AMERICA AUTOMOTIVE LOGISTICS MARKET SEGMENTATION

By Type

• Outsourcing
• Insourcing

By Services

• Transportation
• Warehousing
• Packaging Processes
• Integrated Service
• Reverse Logistics

By Sector

• Passenger Vehicle
• Commercial Vehicle
• Tire
• Component

By Country

• US
• Mexico
• Canada

Automotive logistics Market - Companies Mentioned

• CEVA Logistics AG
• DB Schenker (Deutsche Bahn AG)
• DHL International GmbH (Deutsche Post AG)
• DSV A/S
• GEODIS
• KUEHNE + NAGEL International AG
• Nippon Express Co., Ltd.
• Ryder System, Inc.
• XPO Logistics, Inc.
• United Parcel Service, Inc.

North America Automotive Logistics Report Scope