Global Automotive Logistics Market: Emergence of Modern Industrial Practices and Solutions Expanding the Potential

Global Automotive Logistics Market

Automotive logistics are the application of supply chain logistics which deals with supplying and implementing value-added logistical offerings during the entirety of vehicle manufacturing. This logistics service deals with distribution, handling, warehousing and transportation of components and the vehicle itself to different locations wherever required. The applications of these services begin from the pre-production stage of vehicles to the post-production stage wherein the vehicle has to be delivered to the buyer.

Automotive Logistics Market

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The main factor behind the growth of the market is:

  • Growing urbanization and industrialization: Automotive logistics is witnessing a transformation period experienced due to the significant improvements in the infrastructure available with the logistics companies. Their business operations have experienced wide-spread increase in the adoption rate as their ability to deliver high-quality on-time service offerings have improved. Along with this, the rate of urbanization in the different regions of the world is also promoting the growth of automotive logistics market as this has helped automotive manufacturers reach a greater population base due to their need for improving the living standards. This need is ultimately met by the adoption of vehicles/automotive by these individuals which in its entirety positively affects all of the related industries and service providers

The market is segmented on the basis of activity as transportation, warehousing; logistics service as aftermarket, outbound, inbound, reverse; transport is segmented into airways, roadways, maritime, railways; distribution into international, domestic.

Some of the recent market developments are as follows:

  • In December 2018, Avvashya CCI Logistics Pvt Ltd (ACCI) announced that they had initiated their expansion of business operations with the help of establishing warehouses and assembly lines in Kenya and economically positive zone of Jebel Ali Free Zone, in UAE. This move will help local manufacturers of automotive and various global majors in the market with highly effective and efficient logistics services. This strategy will also help in achieving their goal of expanding their global footprint overseas
  • In March 2018, SEKO announced that they had initiated heavy investments in establishing their logistics and infrastructure by developing a 10,000 square meter facility in Mexico. This expansion will be categorized into two different phases wherein the company will initially establish a small number of locations in the country and in the second phase expanding to twenty locations with the help of different warehouse and office establishments. This expansion is a result of significant increase in the demand from retail, aerospace and automotive industries for better quality of logistics services

“According to Data Bridge Market Research, global automotive logistics market is growing at a substantial CAGR of 7.67% during the forecast period of 2019 to 2026”

Some of the major players operating in the market are Ryder System, Inc.; BLG LOGISTICS GROUP AG & Co. KG; DB Schenker; YUSEN LOGISTICS CO, LTD.; SEKO; DHL International GmbH.; GEFCO; Hitachi Transport System, Ltd.; KUEHNE + NAGEL; Neovia Logistics Services, LLC.; Kintetsu World Express, Inc.; SCHNELLECKE GROUP AG & CO. KG; Penske; DACHSER SE; DSV; CEVA Logistics; Expeditors International of Washington, Inc.; XPO Logistics, Inc.; PANALPINA WORLD TRANSPORT (HOLDING) LTD. and Imperial Holdings Ltd.

Overall, automotive logistics is experiencing significant upgradations in the technologies available in the logistics industry. These technologies related to blockchain, autonomous vehicles and artificial intelligence combine to formulate greater efficiency in the businesses for logistics. These combined technologies promote greater return on investments, transparency in the supply chain which helps the automotive manufacturers deliver their services on time and in an economical way.