Press release
Automotive Logistics market Growth Steady at 14.0% CAGR by 2027
Automotive Logistics market
The automotive e-commerce platform offers several benefits for customers, dealers, wholesalers, and retailers in terms of attracting new business buyers, such as generating customer loyalty by presenting lucrative offers to them; rapidly expanding into new markets; improving customer buying experiences; and proper management of an unlimited number of stock-keeping unit (SKUs) & products. This results in more orders and increasing sales of automotive vehicles. A few well-known automotive e-commerce platforms include BigCommerce Pty. Ltd.; Oro, Inc.; Cellacore, Inc.; Web Shop Manager; and Adobe Commerce.
The increasing automotive e-commerce platforms across the globe is creating opportunities for automotive logistics providers to expand their businesses. Also, post-COVID-19 pandemic, the automotive e-commerce sector is expected to offer opportunities for all industry participants, including the original equipment manufacturers (OEMs), workshops & garages, distributors, end customers, non-auto stakeholders, and mobility startups. According to the article published by The Outreach in December 2021, consumers prefer online shopping due to the COVID-19 pandemic. The supply movement led to a massive demand for intermediate commercial vehicles (ICVs) and small commercial vehicles (SCVs).
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Companies Profiled in this report includes: CEVA Logistics AG; DB Schenker; DSV A/S; DHL International GmbH (Deutsche Post DHL Group); GEODIS; Kuehne + Nagel Management AG; Nippon Express Co., Ltd.; Ryder System, Inc.; XPO Logistics, Inc.; and United Parcel Service of America
Impact of COVID-19 Pandemic on Automotive Logistics Market
The COVID-19 outbreak caused significant disruptions in the manufacturing of various products, including cars. A sharp decline in the growth of manufacturing of automobile has impacted the growth of the global automotive logistics market. The factory shutdowns, travel restrictions, trade bans, and border lockdowns to contain the outbreak have impacted the manufacturing, supply, and sales of various automobile components. The global automotive industry is one of the major industries experiencing severe disruptions due to supply chain breaks, technology events cancellations, and factory & office shutdowns as a result of this outbreak. The automotive industry is adversely affected by temporary shutdown of 97% of the light vehicle manufacturing plants in North America and Europe.
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Key Findings of Study:
Based on type, the global automotive logistics market is bifurcated into outsourcing and insourcing. In 2021, the insourcing logistics segment dominates the automotive logistics market in terms of market share, as the insourcing logistics type mandates the need for transportation system capabilities and the human capital to manage logistics tasks. Based on services, the global automotive logistics market is segmented into transportation, warehousing, packaging processes, integrated service, and reverse logistics. In 2021, the integrated service segment led the automotive logistics market in terms of the fastest growth rate. Through integrated service logistics, the companies influence the cost and can manage operations throughout the large panel of the automotive sub-segments. Based on sector, the global automotive logistics market is segmented into passenger vehicle, commercial vehicle, tire, and component. In 2021, the component segment dominated the market in terms of market share, as a completely integrated involves small, medium, and large-size components assembled by the automobile OEMs. By geography, the automotive logistics market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Asia Pacific dominated the automotive logistics market in 2021 in terms of market share.
Automotive Logistics Market Insights
Increasing Usage of Finished Vehicle Logistic Services
With the increase in vehicle production, logistics service providers are focusing on developing better automotive logistics operations. Thus, the logistics service providers are implementing finished vehicle logistics (FVL) services to manage logistics operations better. FVL operations help gain real-time vehicle location data and analytics, obtain complete control over vehicle movement for logistics service providers, and reduce cost & errors linked with legacy technologies, including manual scanning & radio-frequency identification (RFID). Rhenus Group (a leading logistics service provider) observed a significant decline in 2020 due to COVID-19 impact on the decline in automobile production. The company implemented FVL and automotive logistics services from 2021.
In its first six months of implementation of FVL services, it transported 86 high-performance vehicles in Europe, as per the article published by the Rhenus Group in November 2021. Thereby, utilizing a mixture of air, sea, and road transportation, the FVL solution from Rhenus Group provided a better logistics service to vehicle dealers and original equipment manufacturers (OEMs). Hence, the increasing usage of FVL services is driving the market growth of the automotive logistics market.
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Contact Us:
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Contact Person: Sameer Joshi
E-mail: sales@theinsightpartners.com
Phone: +1-646-491-9876
About Us:
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
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