The Automotive Logistics Market is set to grow from its current market value of more than $115 billion to over $170 billion by 2025; as reported in the latest study by Global Market Insights, Inc.

Increasing freight volumes owing to the escalating vehicle production and registrations across the globe are providing strong growth prospects for the automotive logistics market in the projected timeframe. For instance, in 2017, light commercial vehicle production rose to 10.89 million with an increase of 4.5% as compared with 2016. Increasing demand for battery and plug in electric vehicles is positively influencing the market. Increased safety and handling requirements of batteries and electric motors will promote the secure transportation activities.

Utilization of contract logistics is prominently enhancing the productivity of automotive supply chain activities. Logistics service providers are offering specialized services and secure transportation solutions further escalating the automotive logistics market size over the study timeframe. Moreover, increasing inclination of automotive OEM’s towards utilizing freight forwarding services offering shorter transit time and cost-effective solutions will play a vital role in intensifying the market during the forecast timeframe.
Expansion of manufacturing facilities across the globe are providing potential opportunities to logistics service providers for enhancing their market share. Growing requirement for efficient supply of raw materials and finished components by OEM’s is significantly inducing the demand for automotive logistics market. Moreover, growing prominence of IoT in automotive logistics will provide potential opportunities for optimizing the supply chain operations.

Based on activity type, automotive logistics market is categorized into warehousing and transportation. Logistics service providers are continuously expanding their business operations by establishing contract with automotive OEM’s. For instance, in October 2016, DB Schenker started the warehouse management for aftermarket parts of Volkswagen Group in India.

Automotive logistics market based on services is segmented into inbound logistics, outbound logistics, reverse logistics and aftermarket. Aftermarket logistics is projecting a higher visibility owing to rising freight volumes of automotive spare parts and accessories. Increasing demand for service parts availability coupled with strong aftermarket supply chain networks will support the automotive logistics industry over the projected timeframe.

Based on distribution channel the automotive logistics market is categorized into domestic logistics and international logistics. International logistics with witness a substantial growth owing to the increasing import and export activities of finished vehicles and automotive components. Moreover, international trading laws and changing import duties will significantly impact the market share.

Asia Pacific is anticipated to witness a significant growth in the automotive logistics market over the forecast timeframe. This can be credited to strong presence of vehicle manufacturers and production facilities. Surging adoption of electric vehicles will provide a positive outlook for the industry size. The key industry participants in the automotive logistics market include CEVA Logistics, DHL International GmBH, XPO Logistics, Inc. SNCF Group, Kuehne + Nagel, DSV, Ryder Systems, Inc., Imperial Logistics, Hellmann, and SCHNELLECKE GROUP AG & CO. KG. The companies are adopting different strategies such as mergers & acquisitions, new product developments, joint ventures and other form of partnerships to increase their market share.