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Automotive Logistics Market by Activity (Warehouse, Transport), Logistics Service (Inbound, Outbound, Reverse, Aftermarket), Mode of transport (Roadways, Railways, Maritime, Airways), Distribution, and Region – Global Forecast to 2026

Automotive Logistics Market

Automotive logistics can be defined as a category of logistics service that is used for deliverance and value-addition services in the supply chain of vehicle production. This category handles the distribution, warehousing and transportation of automotive components, and also the entire finished automotive vehicle itself, through different transportation methods such as roadways, air transportation, marine transportation or through railroad tracks.

The automotive logistics market is estimated to be USD 284.1 billion in 2018 and is projected to reach USD 472.9 billion by 2025, at a CAGR of 7.55%. Increasing vehicle production, upcoming infrastructure projects, and the advent of electric vehicles are the major reasons for market growth.

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Domestic distribution to be the largest contributor in the automotive logistics market during the forecast period

Domestic logistics include the services required to transport automotive vehicle and goods within a country and region. For example, a passenger car manufactured in China and shipped to India would be included in the domestic logistics market of Asia Oceania. International logistics market in a region includes the logistics services required to transport vehicles from one region to another. For example, a passenger car manufactured in Asia and transported to Europe would be included in the international logistics market of Asia Oceania. Asia Oceania is the largest market for domestic logistics due to large-scale automobile production in China, Japan, and India. Europe is the second largest market as the EU has facilitated the easy movement of man and materials amongst the EU counties. Similarly, in North America, cars and components manufactured in the US can be easily transported to Canada and Mexico. Thus, domestic distribution is expected to grow at a brisk rate during the forecast period.

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Warehouse to have the fastest growth in the automotive logistics market during the forecast period

The key players operating in the logistics industry also offer warehousing services to OEMs as well as Tier I/Tier II component manufacturers. These services offered by logistics providers ensure that OEMs can deploy just in time (JIT) and just in sequence (JIS) assembly line production. The demand for these services depends on vehicle production. Hence, the regions with higher vehicle production will have a larger share in the warehousing market. In addition to warehousing, logistics service providers also offer assembly services for OEMs. For instance, DSV provides component assembly and warehousing services for Volvo Cars at Ghent, Belgium. Volvo manufactures its XC60, S60, V40, and V40 Cross Country models at the plant. During the forecast period, the warehouse segment is expected to witness the fastest growth due to the pre-assembly of components and increased vehicle production.

Asia Oceania is expected to account for the largest market size during the forecast period

The automotive logistics industry has witnessed substantial growth, particularly in emerging economies such as China and India. Asia Oceania is expected to witness an annual growth of 7-8% in line with global growth during the next 8 years. The region has witnessed growth in automotive production due to low wages, availability of raw materials, increased demand for vehicles, and presence of major OEMs such as Toyota (Japan), Maruti Suzuki (India), SAIC (China), Honda (Japan), Geely (China), and Hyundai (South Korea). China, Japan, India, and South Korea export vehicles to various countries in Europe and North America.

The Belt and Road Initiative, which aims to strengthen infrastructure, trade, and investment links between China and several other countries, is among the several infrastructure projects that are expected to drive the automotive logistics market in the Asia Oceania region. The Indian Railways is working toward improving its logistics services with the development of 6 dedicated freight corridors (DFCs) that span 2800 km across the eastern and western regions of the country.

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Key Market Players

The automotive logistics market is consolidated and dominated by a few global players. The key players in the market are DHL (Germany), XPO (US), SNCF (France), Kuehne + Nagel (Switzerland), DSV (Denmark), Ryder (US), CEVA (UK), Imperial (South Africa), Panalpina (Switzerland), and Expeditors (US). The industry has adopted key strategies such as expansions, new product developments, and partnerships. For instance, Kuehne + Nagel expanded its regional network in Central Asia to offer an integrated service portfolio to both local and international customers from all major industries throughout the region.

Recent Developments
  • In December 2017, DSV established a brand-new logistics site in Cabanillas del Campo (Guadalajara, Mexico). The warehouse is a 50,000-square meter multi-customer facility with 60 loading docks and a storage capacity of 60,000 pallets. The entire location is expected to generate approximately 200 new jobs in the region.
  • In June 2017, DHL and Latvian Railways joined forces to boost the Baltic-China trade. Their agreement established high-speed multimodal rail routes between Latvia and China, using Riga as the logistics hub for the Baltic and Nordic regions.
Key Questions addressed by the report
  1. Which logistics services are expected to dominate in the future?
  2. How are the industry players addressing the challenge of maintaining a balance between on time delivery and low-cost?
  3. Which mode of transport has the fastest growth in a region?
  4. How would electric vehicles affect the automotive logistics supply chain?
  5. What are the key strategies adopted by the players? Which new advancements are the game changers?
  6. What are the key revenue impacting strategies that would drive the market in the future?
  7. How are the industry players placed in competitive leadership mapping?

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