automotive logistics Market

The global Automotive Logistics Market Forecast to 2028 - COVID-19 Impact and Global Analysis - by Type, Services, and Sector 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 propelled by the increasing number of global automobile manufacturing units.

The automotive industry is witnessing a surge in vehicle demand, leading manufacturers to increase production to meet consumer needs. This trend is attributed to the rise in disposable incomes and the growth of manufacturing units in developed and developing nations, resulting in an increased need for passenger and commercial vehicles. In Europe and North America, the demand for commercial vehicles has led to a growth in manufacturing and assembly units. In 2018, the Organisation Internationale des Constructeurs d'Automobiles (OICA) reported that global automobile manufacturers produced 95.7 million vehicles. To meet the rising demand, manufacturers are placing greater emphasis on the logistics of transporting vehicle components such as wheels, tires, vehicle frames, and fully assembled vehicles from one location to another.

The global automotive logistics market has been significantly impacted by the COVID-19 pandemic, resulting in disruptions to the manufacturing of various products, including cars. The outbreak led to a sharp decline in automobile manufacturing growth, which, in turn, affected the development of the automotive logistics market worldwide. The measures taken to contain the virus, such as factory shutdowns, travel restrictions, trade bans, and border lockdowns, had an adverse effect on the production, supply, and sales of various automobile components. The automotive industry has been hit hard by supply chain disruptions, technology event cancellations, and temporary shutdowns of 97% of North America and Europe's light vehicle manufacturing plants.

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 market is categorized 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 classified 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.