Market Snapshot
| Study Period: | 2016 - 2026 |
| Base Year: | 2020 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia Pacific |
| CAGR: | >6 % |
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Market Overview
- The global automotive logistics market is expected to register a growth rate of more than 6% during the forecast period. With the automotive industry continually evolving, logistics are getting complex. Automotive companies are looking toward supply chain strategies, in order to exploit new market opportunities, reduce costs, and maintain competitive advantage.
- Additionally, introduction of electric vehicles is also projected to offer a key uplift to the automotive logistics market, globally. The players operating in the logistics industry also offer warehousing and inventory management services to OEMs as well as Tier I and Tier II component manufacturers. The demand for these services depends on vehicle production.
- Hence, the regions with more vehicle production is likely to have a significant share in the automotive warehousing sector. In addition to warehousing and distribution, logistics service providers (LSPs) also offer assembly services for OEMs.
- Global car makers are disrupting the traditional supply chain with innovative transport solutions. For instance, in Jan 2019, Renault announced plans to start a home delivery service in Russia for vehicles sold via its online showroom. Promoting the online showroom is part of Renault’s sales development strategy in Russia. It has already sold 27,000 finished vehicles via the site, primarily Renault Kaptur and Renault Duster units.
- While roll-on/roll-off (ro-ro) is the traditional method of shipping finished vehicles, containerization is becoming increasingly viable, as the automotive industry decentralizes and introduces more EVs. Growth in China and Southeast Asia offers good opportunities for the shipping and logistics companies.
- Furthermore, the use of containers on developing routes out of China is also being adopted, especially by rail between China and Europe.
Southeast Asia is considered as one of the favorable region to make containerization feasible, as the region witnesses growth in vehicle sales and there is demand for logistics services.
- Following the free trade agreement signed in the ASEAN markets, including the Philippines, Malaysia, Thailand, Vietnam and Cambodia, trade in finished vehicles has grown. CFR Rinkens, a vehicle transportation service provider, won a contract to ship BMWs from Europe to Vietnam in containers.
Scope of the Report
A complete background analysis of the global automotive logistics market, which includes an assessment and contribution of the sector in economy, market overview, market size estimation for key segments, key countries and emerging trends in the market segments, market dynamics, and key component flow statistics are covered in the report.
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Other Services |
| By Type | |
| Finished Vehicle | |
| Auto Components | |
| Other Types |
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Key Market Trends
Positive Outlook for the Automotive Sales and Production Demands Efficient Logistics Services
Despite some headwinds, the automotive industry looks bright, globally. The United States light vehicle sales peaked in 2016 with 17.46 million-unit sales, and 2018 marked the fourth consecutive year with over 17 million-unit sales. According to industry sources, global light vehicle production unit sales have been remarkable and continue to grow. APAC is expected to register the highest growth rates in terms of production volumes followed by North America. Furthermore, electric vehicles production and sales are increasing at a record pace, which need specialized logistics.
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Asia-Pacific Dominates the Market
- As per the industry analysis, the Asia-pacific region is estimated to hold the major market share in the market studied. This is primarily because of the presence of the emerging economies, like China and India. Numerous factors, like easy availability of raw materials, increased demand for vehicles in the region, rising population, and availability of low wage workers, are anticipated to drive the automotive logistics market in the region.
- APAC is home to some of the major automotive OEM companies, like Toyota, Maruti Suzuki, Hyundai, and SAIC Motor Corporation Limited, among others. With the increasing production and trading activities, there is a demand for the logistics companies to manage the procurement, transport, and storage activities of the OEMs to optimize the latter’s supply chain more efficiently.
- The global logistics companies are increasingly entering the APAC region, to tap the growth associated with the market. For instance, in June 2019, French logistics provider, GEFCO, has set up a dedicated subsidiary in Chongqing (China) for specializing in importing and exporting vehicles by rail between Europe, Russia, and China. Additionally, it is developing the group’s other logistics activities in Central China.
- Beyond current inbound and aftermarket services in the Chinese automotive sector, GEFCO plans to boost OEM supply chains in China with activity in the finished vehicle sector. These include door-to-door services for complete built-up units, pre-carriage, car transport, storage, compound design, operation management, and domestic distribution to dealers. Furthermore, the group also anticipates increasing demand for new-generation automotive logistics and other development opportunities resulting from China’s Belt and Road infrastructure-led initiative.
- OBOR extends to most of the countries in the region with major development plans. Electric Vehicle sales are going to witness a significant growth in the region, owing to several nations environmental and sustainability goals. Logistics companies who have capabilities to handle EV’s and its parts can be benefited from this scenario.
- Interestingly, GEFCO has a five-year contract with Chinese producer CATL, which began in Feb 2019. The company transports batteries from China to Europe for leading OEMs and suppliers, and it provides electric-specific compound services in different markets. Additionally, GEFCO and its JV partners have worked with Chinese EV brands, such as BYD.
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Competitive Landscape
- The automotive logistics market is fragmented in nature with the presence of large global players, and small- and medium-sized local players, along with few players who occupy the market share. Most of the global logistics players have an automotive logistics division to meet the market needs and demand. Additionally, local players are increasingly enhancing their capabilities in terms of inventory handling, service offerings, products handled, and technology.
- The third-party logistics (3PL) service providers in the market compete intensely based on reliability and supply chain capacity. By offering value-added services, companies would differentiate their service offerings. The growing e-commerce sales are creating opportunities, as well as challenges to the logistics firms in terms of speed, delivery, etc.
- Global companies, who have high assets and capital, can invest in advanced technology and distribution centers and can benefit from the above-mentioned scenario. On the other hand, regional and local players are coming up with better sector solutions to support the needs of the manufacturers, retailers, as well as dealers.
Recent Developments
In June 2021, Jaguar Land Rover (JLR) signed up Unipart Logistics on a five-year contract to run its global parts logistics center at Appleby Magna in the UK Midlands. The 270,000 square meters facility will distribute aftermarket parts, is due to open in 2022. Unipart will manage distribution, parts packing, branded goods operations, and customer support functions.
In 2019, the shipping line, Maersk, came in partnership with BlackBuck to provide an online marketplace for containerized trucking in EXIM logistics in India. The platform will be open to the entire industry and will reduce touchpoints in the supply chain; thereby improving customer experience, matching demand-supply through the year, and provide service delivery through real-time visibility and control.
Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.4 Industry Value Chain Analysis
4.5 Government Regulations and Initiatives
4.6 Global Logistics Sector (Overview, LPI Scores, Key Freight Statistics, etc.)
4.7 Focus on the Global Automotive Industry (Overview, Development and Trends, Statistics, etc.)
4.8 Spotlight - Effect of E-commerce on Traditional Automotive Logistics Supply Chain
4.9 Review and Commentary on Reverse Logistics (Overview, Challenges in Comparison with Forwards Logistics, etc.)
4.10 Insights on Automotive Aftermarket and its Logistics Activities
4.11 Spotlight on the Demand for Contract Logistics and Integrated Logistics*
4.11.1 Impact of COVID 19 on Automotive Logistics Market
4.12 *List not Exhaustive
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Warehousing, Distribution, and Inventory Management
5.1.3 Other Services
5.2 By Type
5.2.1 Finished Vehicle
5.2.2 Auto Components
5.2.3 Other Types
5.3 Geography
5.3.1 Asia-Pacific
5.3.1.1 China
5.3.1.2 Japan
5.3.1.3 India
5.3.1.4 South Korea
5.3.1.5 Rest of Asia-Pacific
5.3.2 North America
5.3.2.1 United States
5.3.2.2 Canada
5.3.2.3 Mexico
5.3.3 Europe
5.3.3.1 United Kingdom
5.3.3.2 Germany
5.3.3.3 Italy
5.3.3.4 Russia
5.3.3.5 France
5.3.3.6 Rest of Europe
5.3.4 Latin America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of Latin America
5.3.5 Middle East & Africa
5.3.5.1 South Africa
5.3.5.2 United Arab Emirates
5.3.5.3 Saudi Arabia
5.3.5.4 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Hellmann Worldwide Logistics SE & Co. KG
6.2.2 APL Logistics Ltd
6.2.3 BLG Logistics Group AG & Co. KG
6.2.4 CEVA Logistics
6.2.5 DB Schenker
6.2.6 DHL Group
6.2.7 GEFCO SA
6.2.8 Kerry Logistics Network Ltd
6.2.9 Kuehne + Nagel International AG
6.2.10 Penske Logistics Inc.
6.2.11 Ryder System Inc.
6.2.12 DSV Panalpina AS
6.2.13 Expeditors
6.2.14 Panalpina
6.2.15 XPO Logistics Inc.
6.2.16 Tiba Group
6.2.17 Bollore Logistics
6.2.18 CFR Rinkens*
6.2.19 *List not Exhaustive
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 GDP Distribution (by Activity - Key Countries)
8.2 Insights on Capital Flows - Key Countries
8.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy (Key Countries)
8.4 Global Automotive Industry Statistics*
8.5 *List not Exhaustive
9. DISCLAIMER
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Frequently Asked Questions
What is the study period of this market?
The Global Automotive Logistics Market market is studied from 2016 - 2026.
What is the growth rate of Global Automotive Logistics Market?
The Global Automotive Logistics Market is growing at a CAGR of >6% over the next 5 years.
Which region has highest growth rate in Global Automotive Logistics Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Automotive Logistics Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Global Automotive Logistics Market?
Hellmann Worldwide Logistics SE & Co. KG, APL Logistics Ltd, BLG Logistics Group AG & Co. KG, CEVA Logistics, DB Schenker are the major companies operating in Global Automotive Logistics Market.
