Market Trends of Europe Automotive Logistics Industry
This section covers the major market trends shaping the Europe Automotive Logistics Market according to our research experts:
Rising Demand for Electric Automobiles Promotes the Logistics Market Growth
Over the years, the European Union has set stringent laws and restrictions for carbon emissions caused by automobiles. These laws compelled European automakers to develop low-emission cars, resulting in the widespread adoption of electric vehicles in Europe.
The French government announced the commencement of a EUR 100 million (USD 120.7 million) financial scheme to encourage the development of electric car fast-charging stations in March 2022. This financial assistance will be granted to businesses that propose to invest in EV charging stations in service locations along public highways and the national road network. This investment seeks to provide fast charging stations in all service regions by the end of 2022. Furthermore, the French government stated in October 2020 that it intends to have 100,000 public charging stations operational by the end of 2022. Such support initiatives are intended to increase EV adoption across Europe.
Furthermore, Great Wall Motors is ready to launch its Ora brand of all-electric vehicles in Europe. BYD has announced the release of the Atto small SUV (which received the maximum 5 stars for safety from European NCAP on Wednesday), Tang large SUV, and the huge Han sedan.
Automotive expansion in the Germany region is driving the market
The root cause of the increment in automotive parts sales in Germany is the growing sales of hybrid and electric vehicles in the last few years. In 2021, German automakers manufactured more than 15.6 million automobiles. German firms account for 15 of the world's top 75 automobile suppliers. Germany is the European auto manufacturing leader, producing more than 3.1 million passenger cars and 351,000 commercial vehicles in 2021.
In 2021, German OEMs were responsible for over EUR 28.3 billion (USD 30.85 billion) in internal R&D spending. The German motor industry employed around 134,000 people in research and development. The German automobile industry's manufacturers and suppliers will invest more than EUR 220 billion (USD 239.77 billion) in electric mobility and digitalization from 2022 to 2026. Volkswagen, BMW, and Daimler are the top three suppliers, with Bosch, Schaffler, and ZF also ranking well internationally. In the future years, the sector intends to invest EUR 150 billion (USD 163.48 billion) in digitalization, electric mobility, motor systems, hydrogen technology, and transportation safety.
In the next years, the German automobile sector will perform best in the developing globe. Domestically, the industry will consolidate its market leadership, owing mostly to expansion and growth in the premium market segment.
