Automotive Logistics Market Research Report and Outlook by 2028

The global Automotive Logistics Market is projected to expand significantly, with forecasts indicating growth from US$ 197,630.46 million in 2021 to US$ 306,121.54 million by 2028. This represents a compound annual growth rate (CAGR) of 6.5% during the period from 2021 to 2028.

The expansion of the automotive logistics sector is largely driven by the increasing number of automobile manufacturing facilities worldwide.

Currently, the automotive industry is experiencing a notable rise in vehicle demand, prompting manufacturers to ramp up production to satisfy consumer requirements. This surge is largely due to rising disposable incomes and the proliferation of manufacturing plants in both developed and emerging economies, which has led to a heightened demand for both passenger and commercial vehicles. In regions such as Europe and North America, the growing need for commercial vehicles has spurred the establishment of additional manufacturing and assembly facilities. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), global automobile production reached 95.7 million vehicles in 2018. To address this escalating demand, manufacturers are increasingly focusing on the logistics involved in transporting essential vehicle components, including wheels, tires, vehicle frames, and fully assembled vehicles across various locations.

The COVID-19 pandemic has had a profound effect on the global automotive logistics market, causing significant disruptions in the manufacturing of numerous products, including automobiles. The pandemic resulted in a sharp downturn in automobile production growth, which adversely impacted the automotive logistics sector on a global scale. Efforts to control the virus, such as factory closures, travel restrictions, trade prohibitions, and border lockdowns, severely disrupted the production, supply, and sales of various automotive components. The automotive sector has faced substantial challenges due to supply chain interruptions, cancellations of technology events, and temporary halts in operations at 97% of light vehicle manufacturing plants in North America and Europe.

Key Insights from the Study:

The global automotive logistics market is categorized by type into outsourcing and insourcing. In 2021, the insourcing logistics segment held the largest market share, as this type necessitates robust transportation system capabilities and skilled personnel to oversee logistics operations. The market is also segmented by services, which include transportation, warehousing, packaging processes, integrated services, and reverse logistics. In 2021, the integrated service segment exhibited the fastest growth rate within the automotive logistics market. By utilizing integrated service logistics, companies can influence costs and manage operations across a wide array of automotive sub-segments. Furthermore, the market is divided by sector into passenger vehicles, commercial vehicles, tires, and components. In 2021, the component segment led the market in terms of share, as a fully integrated system involves the assembly of small, medium, and large components by automotive original equipment manufacturers (OEMs). Geographically, the automotive logistics market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, the Asia Pacific region dominated the automotive logistics market in terms of market share.