Automotive logistics is the meticulous planning and execution of a complicated car transportation process. It covers all modes of transportation, such as rail, truck, and marine. The movement of auto components, replacement parts, and whole cars from supplier to consumer is known as automotive logistics and transport, warehousing, unloading, loading, and data processing are the primary operations.
The North America automotive logistics market was valued at US$ 66.37 Bn in 2021 and is forecast to reach a value of US$ 113.69 Bn by 2030 at a CAGR of 6.1% between 2022 and 2030.
Figure 1: North America Automotive Logistics Market Value (US$ Bn) Analysis and Forecast, 2017 - 2030
In August 2018, DB Schenker increased its logistics center in Malaysia and has approved tow services in the Shah Alam Malaysia. The 224,000 square foot facility is located in the port of PTP free trade zone which provides the clients with the supply, warehousing, and the temperature regulated and the ambient storage and the value added facilities. The center has a storage capacity of 27,000 pallet.
In February 2018, DB Schenker plots an idea to execute the creative solutions and methods in the automotive segment to match up with the increasing need. This will note the novel growth and the developments made in the automotive section comprising 3D printing utilized to manufacture or make the replacement parts and any more.
The rising number of automobile manufacturing plants across North America is driving the growth of the North America automotive logistics market. For instance, as per IBISWorld.com, There are around 718,796 Manufacturing plants in the US as of 2022, an increase of 3.8% from 2021.
The incorporation of smart technologies and autonomous vehicles is anticipated to propel the growth of North America automotive logistics market in the forecast period. For instance, as per Global Data’ report there are more than 1400 self-driving cars on the roads in US.
Figure 2: North America Automotive Logistics Market Share (%), By Region, 2021
Security of sensitive and confidential data is one of the main reasons for the sluggish acceptance of the technology in automotive industry. This is expected to hinder the growth of North America automotive logistics market.
The fluctuations in fuel costs, supplier/buyer relationships, consumer behavior and partner ecosystem is a major concern impeding the growth of the North America automotive logistics market.
|Base Year:||2021||Market Size in 2021:||US$ 66.37 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||6.1 %||2030 Value Projection:||US$ 113.69 Bn|
Ceva Logistics Ag, Kuehne + Nagel International Ag, Dhl International Gmbh (Deutsche Post Ag), Ryder System, Inc., United Parcel Service, Inc., Db Schenker (Deutsche Bahn Ag), Xpo Logistics, Inc., Dsv A/S, Nippon Express Co., Ltd. and Geodis.
|Restraints & Challenges:||
Cloud technology is one of the key technologies which is anticipated to propel the logistic companies’ growth in the upcoming years. Cloud technology offers several benefits to the transportation company, such as better customer experience in terms of speed, lower prices, and the ability to track goods. This is expected to offer lucrative opportunities in the growth of North America automotive logistics market.
In the autonomous vehicles sector especially, the passenger cars are gaining substantial popularity in recent times, and several automobile manufacturers are testing autonomous trucks. The autonomous trucks would benefit the logistics companies as well as the suppliers with enhanced safety and shorter lead times. This is further predicted to offer growth opportunities in the North America automotive logistics market.
Market Key Takeaways/Trends:
The US automotive sector is increasing rapidly, with increasing capital growth and higher exports. The significant initiative has been taken by both the carmakers and logistic service providers across the automotive industry in the US. This is expected to act as a key trend in the growth of North America Automotive Logistics Market.
Strengthening the division of labor is expected to act as a trend in the growth of North America Automotive logistics market. A part of logistical management functions is entrusted to third party logistics to decrease the investment and operating cost. Utilizing the third party logistics enables the companies to gain more market information. This is expected to boost the growth of North America Automotive Logistics.
Major companies involved in the North America automotive logistics market are Ceva Logistics Ag, Kuehne + Nagel International Ag, Dhl International Gmbh (Deutsche Post Ag), Ryder System, Inc., United Parcel Service, Inc., Db Schenker (Deutsche Bahn Ag), Xpo Logistics, Inc., Dsv A/S, Nippon Express Co., Ltd. and Geodis.
Integrated logistics facilities are important to successful automotive logistics management. These services ensure an endless supply chain and on-time delivery of new automotive. They assist a logistics team by allowing access to real-time information on shipments. They also help reduce complexity and streamline operations.
The rising partnership by the key players is expected to drive the growth of the North America Automotive Logistics Market. For instance, in March 2019 DHL International announced its partnership with Austrian Post, through this partnership the company continue its focus towards developing its international e-commerce business. The increasing adoption of electric vehicles in the region is expected to propel the growth of the North America Automotive Logistics Market. For instance, The United States market almost doubled to 360,000 EV units, mainly because of the strong sales performance of Tesla’s Model 3. Tesla sold 140,000 Model 3 cars in 2018, making it the best-selling EV in the United States.
On contrary, the low efficiency of batteries of plug-in vehicles or electric vehicles is expected to hamper the growth of the North America Automotive Logistics Market.
Key features of the study:
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