According to our latest market study on "Automotive Logistics Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Services, and Sector," the market is expected to grow from US$ 1,97,630.46 million in 2021 to US$ 3,06,121.54 million by 2028; it is estimated to grow at a CAGR of 6.5% from 2021 to 2028.
The growth of the automotive logistics market is being fueled by an increase in the number of automobile manufacturing units worldwide.
The global automotive industry is facing a surge in demand for vehicles, compelling manufacturers to meet the growing requirements. This increase in demand for passenger and commercial vehicles worldwide is attributed to the rise in disposable incomes and the growth of manufacturing units in both developed and developing countries. The need for commercial vehicles has led to an increase in the number of commercial vehicle manufacturing or assembly units in North American and European countries. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), global automobile manufacturers produced 95.7 million vehicles in 2018. With the rising global demand for vehicles, automobile manufacturers are concentrating on expanding their vehicle manufacturing units. As a result, manufacturers are now focusing on the logistics of vehicle components, including fully assembled vehicles, wheels, tires, and vehicle skeleton, from one location to another.
The global automotive logistics market was significantly impacted by the COVID-19 outbreak, which caused disruptions in the manufacturing of various products, including cars. As a result of the outbreak, there was a sharp decline in the growth of automobile manufacturing, which in turn had a negative impact on the growth of the global automotive logistics market. The manufacturing, supply, and sales of various automobile components were affected due to factory shutdowns, travel restrictions, trade bans, and border lockdowns implemented to contain the spread of the virus. The automotive industry was one of the major industries experiencing severe disruptions due to supply chain breaks, technology events cancellations, and factory and office shutdowns, especially in North America and Europe, where 97% of the light vehicle manufacturing plants were temporarily closed.
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 industry 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. On the basis of services, the 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. On the basis of sector, the 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.
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