Press release
Automotive Logistics Market By Logistics Service, Activity, Mode of Transport & Region
The Automotive Logistics Market is projected to grow from USD 284.1 billion in 2018 to 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.
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).
Opportunities:
1. Implementation/Usage of Driverless Vehicles
2. Usage of Blockchain for Efficient Logistics Operations
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Warehouse to have the fastest growth in this 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.
Transportation is estimated to be the largest segment of the automotive logistics market during the forecast period
Increasing global vehicle production has increased the demand for logistics services for the transportation of automotive components, accessories, spare parts, and finished vehicles. Due to low labour costs and taxes, Asia has become the hub of automotive production. It accounts for 55% of the global passenger car and LCV production. In the automotive logistics supply chain, transportation of components, accessories, spare parts, and finished vehicles is more expensive. These vehicles and components are exported to Europe and North America and require a multimodal mode of transport. According to experts, the introduction of electric vehicles will cause major changes in the automotive logistics supply chain. The logistics services for transportation and handling of batteries are expected to account for a significant part of inbound logistics.
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Maritime logistics is estimated to be the fastest-growing mode of transport in the automotive logistics market
The transportation of cargo through waterways is more economical than through roadways and railways. It does not require a huge capital investment in construction and maintenance, except in the case of canals. Various countries such as France, Germany, Spain, China, India, and Brazil are working toward increasing the share of maritime transport in the logistics industry through investments and favourable policies. For instance, the European Union is working on 5 priority infrastructure projects that include 3 rail-marine projects and 2 inland waterways projects. Thus, marine logistics is estimated to witness the fastest growth during the forecast period.
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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