The global automotive logistics market size was U.S.$ 258 billion in 2020. Due to COVID-19 market declined by 7.5% in 2020 compared to avg year-on-year growth during 2016-2019. The market is expected to grow from U.S.$ 260 billion to U.S.$ 300 billion in 2030 with a CAGR of 6% between 2021-2030.
Logistics is made up of the companies and individuals engaged in the production of goods, from raw materials to final products. Shipment, storage, services, and transportation fall under the logistics category. Automotive logistics is the critical planning and execution of a complicated car transportation process.
Logistics covers every mode of transportation, such as rail, truck, cargo, and marine. The primary operations are transporting, warehousing, unloading, loading, distribution, and data processing. The automotive logistics industry has essential growth, particularly in developing economies such as China & India. Asia is expected to see an annual increase of 8-10% in the upcoming 6-7 years.
The main reason behind the automotive industry’s growth is low wages, availability of raw materials, increased demand for vehicles, and the presence of companies such as Toyota, Maruti Suzuki, Honda, and Hyundai. China, India, and South Korea, export vehicles to countries such as North America and Europe.
Asia holds the largest automotive logistics share and stood at U.S.$ 135 billion mark in 2020. Factors such as increasing demand for vehicles, availability of raw materials, and, most notably, low wages cost are the main reasons for the massive growth of the automotive sector in this region. In addition, the market leaders such as Toyota, Hyundai, Honda, and BYD are also focused on localizing their production in this region due to reduced operational costs.
Transportation rates have increased rapidly over the last few years. The primary factors affecting it are higher cost and lack of truck driver availability—decreased driver supply and increased transport demand from manufacturers. According to American Transport Association, there is a shortage of more than 60000 skilled drivers in the United States. Hence these factors may affect the automotive logistics market growth. Based on the distribution, the market is divided into two segments that are domestic and international. The domestic segment holds a significant market share in 2020 to encourage local production in India and China.
The market leaders in these industries are TVS logistics, Kerry logistics, SEKO, FedEx, DB Schenker, Deutsche, UPS, etc. They dominate Europe, Asia-Pacific, North America, Africa, and The Middle East.
Our Automotive and Transportation category segmentation encompasses:
Infotainment, Navigation, and Telematics Read More ▾
Driving Safety and Security Systems
Electric and Hybrid Vehicles
Automotive systems, and accessories