The increased focus on expanding the number of automobile manufacturing units across the globe and a significant number of partnerships among automobile manufacturers and logistics partners are the key factors driving the growth of the automotive logistics market. Moreover, the significant proliferation of vehicle manufacturing is anticipated to boost the automotive logistics market growth in the near future. The automotive industry is experiencing significant demand for vehicles, which is pressurizing the vehicle manufacturers to deliver the required amount of vehicles. However, the performance of the vehicle manufacturers remained stable in the past two years, i.e., 2017 and 2018. The rise in demand for passenger and commercial automobiles among the global mass is majorly driven by the rise in disposable income and an increase in manufacturing units in the developed countries and developing economies. Developing economies witnessed a steady growth in the post-recession era, and thus, there was a rise in the disposable incomes of consumers. In western countries, an increase in demand for commercial vehicle is witnessed, which led the countries to experience an increase in the number of commercial vehicle manufacturing units or assembly units. This factor has led the automobile manufacturers to focus on logistics of the various components and vehicle skeleton internationally.
The insourcing type dominated the automotive logistics market in the year 2018 with the highest market share and is expected to boost its dominance during the forecast period. Many companies that run small and medium scale businesses do not have the scale required or the complexity in their shipping operations for contracting logistics service providers. Moreover, maintaining a completely in-house shipping operation provides the companies with complete control over the shipping operations. These operations include negotiating carrier rates, planning and optimizing loads, and executing the distribution plans. The insourcing logistics type mandates the need for an appropriate set of transportation system capabilities as well as the human capital to manage these tasks. The advantages of insourcing logistics include the complete visibility of the supply chain operations of shipments. Increased quality control and control over operations achieved in the insourcing method is driving the insourcing type in automotive logistics market.
Germany dominated the automotive logistics market in 2018 and is expected to dominate the market with the highest share in the Europe region through the forecast period. Germany is a global leader in premium car production. Of all premium cars and SUVs produced globally, near about 70% is German OEM-manufactured. Also, of all vehicles produced worldwide, almost 25% were produced in Germany. Efficient logistics management has become one of the most important survival factors for the automotive sector, especially for German OEMs and automakers. The easy management and transportation of automobile materials and information in automobile assembly plants have also become the key specification to the rapid growth of German auto manufacturers in order to absorb the very strong competitive pressure of automakers in the global market. The figure given below highlights the revenue share of the rest of Europe in the automotive logistics market in the forecast period:
| Report Attribute | Details |
|---|---|
| Market size in 2018 | US$ 43.25 Billion |
| Market Size by 2027 | US$ 80.58 Billion |
| Global CAGR (2019 - 2027) | 6.9% |
| Historical Data | 2016-2017 |
| Forecast period | 2019-2027 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | Europe
|
| Market leaders and key company profiles |
The List of Companies