Automotive Logistics Market is expected to reach US$ 3,06,121.54 Million by 2028

Surge in Usage of Automotive E-commerce Platforms to Create Lucrative Opportunities for Automotive Logistics Market during 2021–2028

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 automotive e-commerce platform offers several benefits for customers, dealers, wholesalers, and retailers in terms of attracting new business buyers, such as generating customer loyalty by presenting lucrative offers to them; rapidly expanding into new markets; improving customer buying experiences; and proper management of an unlimited number of stock-keeping unit (SKUs) & products. This results in more orders and increasing sales of automotive vehicles. A few well-known automotive e-commerce platforms include BigCommerce Pty. Ltd.; Oro, Inc.; Cellacore, Inc.; Web Shop Manager; and Adobe Commerce.

The increasing automotive e-commerce platforms across the globe is creating opportunities for automotive logistics providers to expand their businesses. Also, post-COVID-19 pandemic, the automotive e-commerce sector is expected to offer opportunities for all industry participants, including the original equipment manufacturers (OEMs), workshops & garages, distributors, end customers, non-auto stakeholders, and mobility startups. According to the article published by The Outreach in December 2021, consumers prefer online shopping due to the COVID-19 pandemic. The supply movement led to a massive demand for intermediate commercial vehicles (ICVs) and small commercial vehicles (SCVs).

The success of an e-commerce platform widely depends on better logistics providers, as they help reach vehicles in a shorter time with good transportation services. Thus, the surge in the usage of automotive e-commerce platforms creates market opportunities for end customers and the automotive logistics market.

Based on type, the automotive logistics market is bifurcated into outsourcing and insourcing. In 2021, the insourcing segment led the automotive logistics market, accounting for the largest share in the market. Based on services, the automotive logistics market can be segmented into transportation, warehousing, packaging processes, integrated service, and reverse logistics. In 2021, the transportation segment accounted for the largest market share. Based on sector, the automotive logistics market can be segmented into passenger vehicle, commercial vehicle, tire, and component. In 2021, the component segment accounted for the largest market share. By geography, the automotive logistics market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, APAC accounted for the largest share in the global automotive logistics market.

Automotive manufacturers and automotive component manufacturers have to face tremendous pressure concerning their final products to be delivered to their respective dealers in the shortest time. Attributing to this fact, automotive manufacturers and component producers are increasing their product shipment activities through their logistics partners. Logistics companies integrate their services with improved technologies that allow manufacturers to track their shipments and lead time to enhance customer satisfaction. This factor is also driving the growth of the automotive logistics market.

Impact of COVID-19 Pandemic on Automotive Logistics Market

The COVID-19 outbreak caused significant disruptions in the manufacturing of various products, including cars. A sharp decline in the growth of manufacturing of automobile has impacted the growth of the global automotive logistics market. The factory shutdowns, travel restrictions, trade bans, and border lockdowns to contain the outbreak have impacted the manufacturing, supply, and sales of various automobile components. The global automotive industry is one of the major industries experiencing severe disruptions due to supply chain breaks, technology events cancellations, and factory & office shutdowns as a result of this outbreak. The automotive industry is adversely affected by temporary shutdown of 97% of the light vehicle manufacturing plants in North America and Europe.

Automakers across Europe and the US have announced temporary discontinuation of their operations that also includes Detroit's Big Three (General Motors, Fiat Chrysler Automobiles, and Ford Motor Company). Many other auto manufacturers have also extended their shutdown beyond their original dates. Moreover, car sales in China have declined by 92% in the first half of February 2020, as per the World Economic Forum.

From the fourth quarter of 2020 and beginning of 2021, the automotive industry witnessed a significant increase in sales. Thus, the demand for logistics services has also increased, which boosted the automotive logistics market growth in 2021 for international and domestic transport. Significant rise in automotive sector, especially passenger cars as consumer preferred personal vehicles over public transport, has bolstered the automotive logistics market growth.

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 the few key players operating in the global automotive logistics market. Several players are analyzed to understand the automotive logistics market.

Automotive Logistics Market - by Region, during 2021–2028 (%)

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Automotive Logistics Market Size Report - Growth & Forecast 2028

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Automotive Logistics Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Outsourcing and Insourcing), Services (Transportation, Warehousing, Packaging Processes, Integrated Service, and Reverse Logistics), and Sector (Passenger Vehicle, Commercial Vehicle, Tire, and Component)