Automotive logistics market size to gain major traction over 2019-2025, APAC to show steady growth

Asia Pacific registered a significant share in the automotive logistics market. This can be attributed to the proliferating automotive production across the region. Moreover, the presence of major automobile OEMs focusing on offering a diversified range of products for a wide customer base further accentuates the regional size. The rising automobile manufacturing sector across the region coupled with favorable government policies promoting the indigenous production for enhancing the localization content will play a major role in the regional share expansion over the study period.

Japan will be a key market for domestic automotive logistics services and the country’s contribution is being attributed to well-established automobile manufacturers such as Toyota, Nissan and Honda that call Japan their home. Toyota, for instance, has its parts and logistics division network spanning across 38 countries, with over 177 dedicated sites that are operated by more than 79 overseas business entities and subsidiaries. Such vast networks are exactly why Japanese automakers enjoy a strong presence in different countries and will drive the expansion of the regional automotive logistics market.

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Warehousing accounted for a significant share in the automotive logistics market. This can be attributed to the requirement for safe and reliable storage facilities for automobile components and parts. Moreover, automobile manufacturers are focusing on outsourcing their warehousing operations for improving profitability. For instance, Volkswagen India outsourced its warehousing operations to Schenker India Pvt. Ltd. for receiving, picking, binning, packing, and dispatching of automotive parts and components.

International logistics will exhibit significant growth in the automotive logistics market. This can be attributed to the import and export activities by major automobile OEMs to produce or assemble their products in a country. For instance, Ford imports their Ecoboost engine to India for producing the Ecosport S vehicle. Moreover, Maruti Suzuki also imports their Boosterjet engine from Japan for their Baleno RS premium hatchback.

Inbound logistics will grow considerably in the automotive logistics market. This can be attributed to the increasing demand for raw materials and auto parts & components from automobile OEMs. Moreover, rising vehicle production along with proliferating demand for electric vehicles are inducing the demand for electric motors and lithium-ion batteries. Industry players are entering into strategic contracts for improving their market share. For instance, in 2018, Gefco singed a strategic contract with Plastic Omnium for inbound logistics of plastic automotive components.

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Industry participants are investing in R&D and expanding their workforce to improve their business operations. Moreover, the service providers are investing in advanced tools and focusing on customer interaction for improving their business operations and increase their business share. For instance, in 2019, XPO Logistics launched its cloud based digital freight platform, XPO Connect, that offers enhanced information to its customers for easier handling of their clients.

The key industry players in the automotive logistics market share include Kuehne + Nagel, CEVA Logistics, XPO Logistics, Inc., DHL International GmBH, SNCF Group, Hellmann, DSV, SCHNELLECKE GROUP AG & CO. KG, Imperial Logistics, and Ryder Systems. Industry participants are engaged in expanding their services range for improving their market share. For instance, in 2019, DHL announced the addition of Boeing 777 freighter aircraft in its intercontinental fleet for expanding their operations and cater to a wide customer base.

Report Content

Chapter 1. Methodology and Scope

1.1. Methodology

1.1.1. Initial data exploration

1.1.2. Statistical model and forecast

1.1.3. Industry insights and validation

1.1.4. Scope, definition & forecast parameters

1.2. Data Sources

1.2.1. Secondary

1.2.2. Primary

Chapter 2. Executive Summary

2.1. Automotive logistics market 3600 synopsis, 2013 – 2025

2.1.1. Business trends

2.1.2. Activity trends

2.1.3. Service trends

2.1.4. Distribution trends

2.1.5. Regional trends

Chapter 3. Automotive Logistics Market Insights

3.1. Industry segmentation

3.2. Industry landscape, 2013 – 2025

3.3. Industry ecosystem analysis

3.3.1. Raw material suppliers

3.3.2. Manufacturers

3.3.3. Profit margin trends

3.3.4. Distribution analysis

3.3.5. Vendor matrix

3.4. Technology landscape

3.5. Regulatory landscape

3.5.1. North America

3.5.2. Europe

3.5.3. Asia Pacific

3.5.4. Latin America

3.5.5. Middle East & Africa

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