Pune, India, July 24, 2023 (GLOBE NEWSWIRE) -- The Insight Partners published latest research study on “Automotive Logistics Market Size Report, Share, Revenue, Growth Strategy, Industry Trends and Forecast to 2028 - COVID-19 Impact and by Type, Services, Sector, and Geography”, the global automotive logistics market is expected to be growing from US$ 197.63 billion in 2021 to US$ 306.12 billion by 2028. The automotive logistics market is estimated to grow at a CAGR of 6.5% from the year 2021 to 2028. The expansion of the e-commerce industry globally, and growth in international trade. However, the stringent emission regulations are expected hinder the growth of the market.
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Increase in Outsourcing of Automotive Components Provides Lucrative Opportunities for Automotive Logistics Market:
The increase in outsourcing of automotive components presents significant opportunities for the automotive logistics market. As automotive manufacturers increasingly rely on suppliers for various components, there is a growing need for efficient and reliable logistics solutions to handle the transportation and delivery of these outsourced components. Outsourcing automotive components allows manufacturers to focus on their core competencies while leveraging the expertise and specialization of component suppliers. This trend creates an opportunity for automotive, auto, and car logistics companies to provide dedicated services for the transportation, storage, and distribution of these outsourced components. By offering specialized logistics solutions for outsourced automotive components, logistics providers can streamline supply chain operations, improve efficiency, and reduce costs for manufacturers.
They can leverage their expertise in inventory management, transportation optimization, and supply chain visibility to ensure the timely delivery of components to the assembly plants or manufacturing facilities. Additionally, outsourcing automotive components often involves international trade and cross-border logistics. Automotive logistics companies can capitalize on this opportunity by developing expertise in managing global supply chains, navigating customs regulations, and optimizing transportation routes for seamless international deliveries. This includes leveraging their networks, partnerships, and knowledge of international trade practices to provide end-to-end logistics services. Outsourcing of automotive components also presents an opportunity for logistics providers to offer value-added services such as packaging, labeling, kitting, and quality control inspections. These services can help streamline the manufacturing process, improve efficiency, and reduce the burden on automotive manufacturers, allowing them to concentrate on their core operations. Furthermore, automotive components' increasing complexity and diversity require specialized handling and storage solutions. Automotive logistics companies can invest in advanced warehousing facilities equipped with technology-driven inventory management systems to ensure outsourced components' safe and efficient storage. This gives manufacturers access to components when needed, reducing lead times and improving overall production efficiency.
Several factors underscore China's leadership in the automotive logistics market. Firstly, China's automotive manufacturing industry has grown significantly, making it the world's largest automobile producer. The country's vast manufacturing capabilities enable producing a wide range of vehicles, from passenger to commercial vehicles. This extensive manufacturing capacity creates a substantial demand for automotive logistics services to transport these vehicles to domestic and international markets efficiently. Secondly, China's strategic location enhances its logistics hub position. Its proximity to key global markets allows for efficient export and distribution of vehicles and automotive parts. With well-developed transportation networks and access to major ports, China is a gateway for automotive logistics activities, facilitating smooth international trade.
Moreover, the Chinese government has implemented policies to support the development of the automotive industry and logistics sectors. These policies include improving infrastructure, reducing trade barriers, and encouraging foreign investment. The government's commitment to fostering a favorable business environment has attracted multinational automotive companies, increasing demand for automotive logistics services. Technological advancements have also played a pivotal role in China's market leadership. The country has embraced digitalization, automation, and advanced logistics technologies to enhance supply chain management. This includes implementing IoT solutions for real-time tracking of vehicles and parts, AI-driven algorithms for demand forecasting and route optimization, and data analytics for process optimization and efficiency improvement. Furthermore, China's domestic market size and growth potential provide a significant advantage. The country has a large population and a rising middle class with increasing purchasing power. This drives domestic consumption and creates a continuous demand for vehicles and automotive products. As a result, automotive logistics companies in China are well-positioned to serve the expanding domestic market while also capitalizing on export opportunities. In addition, China's commitment to sustainability and environmental responsibility presents opportunities for innovative green logistics solutions. The country has been actively promoting the adoption of electric vehicles (EVs) and investing in charging infrastructure. This transition to EVs necessitates specialized logistics services for transporting, storing, and charging EVs and their components, opening up new avenues for automotive logistics providers.
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Global Automotive Logistics Market Analysis: Competitive Landscape and Key Developments
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, Inc. are a few of the key companies operating in the automotive logistics market. The market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
As of July, 2022 CEVA, Logistics has completed the acquisition of GEFCO, world expert in supply chain solutions and European leader in automotive logistics. With their combined business, they are now the leading global provider of automotive logistics and the largest France-based logistics company.
In June 2021, Jaguar Land Rover (JLR) signed up Unipart Logistics on a five-year contract to run its global parts logistics center at Appleby Magna in the UK Midlands. The 270,000 square meters facility will distribute aftermarket parts, is due to open in 2022. Unipart will manage distribution, parts packing, branded goods operations, and customer support functions.
Automotive Logistics Market: Segmental Overview
Based on type, the automotive logistics market is bifurcated into:
- Outsourcing
- Insourcing
The insourcing segment held the largest share of the market in 2020, whereas the outsourcing segment is anticipated to register the highest CAGR in the market during the forecast period.
Based on services, the automotive logistics market can be segmented into:
- Transportation
- Warehousing
- Packaging Processes
- Integrated Service
- Reverse Logistics
The transportation segment held the largest share of the automotive logistics market in 2020, whereas the integrated service segment and is anticipated to register the highest CAGR in the market during the forecast period.
Based on sector, the automotive logistics market can be segmented into:
- Passenger Vehicle
- Commercial Vehicle
- Tire
- Component.
The component segment held the largest share of the market in 2020, whereas the commercial vehicle segment is estimated to register the highest CAGR in the market during the forecast period.
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