Press release
What’s driving the Automotive Logistics Market Trends? DSV, Royale, Hellmann Worldwide Logistics, BLG Logistics, Jack Cooper Transport & Logistics, ProTrans
Automotive Logistics Market
Asia Pacific will account for a significant share in the automotive logistics market size. This can be credited to the rising automobile production across the region. Moreover, the presence of low-cost labor along with easier availability of raw materials and components further accentuates the regional share. Favorable government policies for the automotive manufacturing sector along with rising demand for vehicles owing to improving disposable income are further boosting the regional growth.
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Based on service, the market share is classified into inbound, outbound, and aftermarket. Inbound logistics will account for a considerable share in the market. This can be attributed to the continuous and on-time supply of components and raw materials for supporting production processes and manufacturing. Moreover, rising focus of manufacturers to support continuous production output along with maximizing efficiency are expected to drive the industry over the forecast timeline.
Based on mode of transport, the automotive logistics market share is segmented into road, rail and water. The transportation of automobiles through water is witnessing significant growth over the projected timeframe owing to lower costs involved across long distance. Road will witness a considerable growth on account of the requirement for transporting vehicles from production facilities in a country to other states. Moreover, rising investments for fleet modernization along with improving road infrastructure are further expanding the market size.
Automobile manufacturers are continuously engaged in innovative manufacturing technologies with an aim to maximize output and lower expenses for improving overall efficiency. Major players including Toyota Motor Corporation is actively involved in six sigma production systems, that enables them for production with minimum errors. Moreover, adoption of just-in-time processes in automotive logistics industry are expected to significantly boost the industry demand.
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Most automobile manufacturers are engaged in offering their vehicles in a country by diversified business approaches including completely knocked down (CKD) units or completely built-up units (CBU). Moreover, favorable regulatory policies along with ease in business operations also attract manufacturers to set-up their manufacturing plants and improve localization content of their manufacturing products, thereby positively influencing the automotive logistics market demand.
Supporting government policies and regulations catering to the improving infrastructure and road transportation are providing a positive outlook for the industry expansion. For instance, in 2013, the China One Belt One Road initiative was initiated with an aim of felicitating effective trade routes between countries, thereby positively influencing the automotive logistics market share over the study timeframe.
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Key players operating in the automotive logistics market share include DSV, Royale, Hellmann worldwide logistics, BLG Logistics, ICL logistics, Jack cooper, Protrans and Wallenius Wilhelmsen Logistics.
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