Discover trends, market shifts, and competitive outlooks for the automotive logistics industry through 2025-2034 with The Business Research Company’s reliable data and in-depth research

How Fast Is The Automotive Logistics Market Expected to Grow Between 2025 And 2029?

The size of the automotive logistics market has significantly expanded in the previous years. The market is projected to grow from $286.51 billion in 2024 to $308.26 billion in 2025, with a compound annual growth rate (CAGR) of 7.6%. The historical period growth is attributed to the progress in emerging markets, a surge in automobile sales, and the expansion of international trade.

In the upcoming years, the automotive logistics market size is slated to witness substantial expansion, reaching $429.49 billion in 2029, exhibiting a compound annual growth rate (CAGR) of 8.6%. The acceleration during the forecast period is linked to increased government backing, global population surge and urbanization, boosted production of electric vehicles, and a surge in e-commerce sales. The forecast period will observe major trends such as the introduction of new technologies for streamlined vehicle and inventory transport, the use of electric vehicles (EVs) for efficient last-mile delivery due to their exceptional maneuverability and minimal carbon emission, focus on collaborations and acquisitions for bolstering financial resilience and geographical reach, development of cutting-edge logistics management platforms for strict monitoring of vehicle delivery status, and the launch of novel products and solutions to fortify their market stance.

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What External and Internal Drivers Are Contributing to the Growth of theAutomotive Logistics Market?

The anticipated boost in the automotive logistics market is set to be largely driven by greater efficiency in finished vehicle logistics. Finished vehicle logistics pertains to the sequential series of methods and procedures that are critical to the vehicle’s safe delivery to the end consumer. This could entail domestic or international transport of vehicles from the manufacturer to the consumer. With the automotive industry using finished vehicle logistics to safely transport cars, an improvement in efficiency in this area directly translates to increased demand for automotive logistics. For example, the International Energy Agency (IEA), an independent intergovernmental organization based in France, disclosed that there was a 60% jump in passenger vehicle exports in 2022, reaching over 2.5 million units. As a result, the progression in finished vehicle logistics efficiency is a potent driver propelling the expansion of the automotive logistics market.

What Segment Types Define the Automotive Logistics Market Structure?

The automotive logistics market covered in this report is segmented –

1) By Type: Outsourcing, Insourcing

2) By Activity: Warehousing And Handling, Transportation And Handling

3) By Mode Of Transport: Roadways, Airways, Railway, Maritime

4) By Services: Transportation, Warehousing, Packaging Processes, Integrated Service, Reverse Logistics

5) By Distribution: Domestic, International

Subsegments:

1) By Outsourcing: Third-Party Logistics (3PL), Fourth-Party Logistics (4PL)

2) By Insourcing: In-House Logistics Management, Dedicated Logistics Services

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Which Geographic Areas Hold the Strongest Growth Potential in the Automotive Logistics Market?

Asia-Pacific was the largest region in the automotive logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the automotive logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Long-Term Trends Are Transforming the Competitive Landscape of the Automotive Logistics Market?

Top players in the automotive logistics industry are concentrating on creating innovative products like integrated logistics platforms. These aim to make transport operations more efficient and upgrade supply chain management. Integrated logistics platforms are all-inclusive software solutions designed to regulate and enhance every facet of a supply chain and transport operations. They promote fluent communication between shippers, carriers, and logistics providers. For instance, Central Dispatch Enterprise was launched by Cox Automotive, a company based in the US, in June 2024. This was devised to make transportation operations for large automotive shippers and brokers more efficient. It provides a private marketplace furnished with customizable features, leveraging first-party data and market intelligence, to uplift supply chain management. Also included are features such as automated processes, APIs for smooth integration, and a carrier mobile app for streamlined transactions. Clients are thus offered tools to amplify operational efficiency and profitability within the automotive logistics industry.

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What Is the Definition of the Automotive Logistics Market?

Automotive logistics refers to a set of activities conducted for the smooth transportation of automotive spare parts and finished vehicles. Automotive logistics consists of inbound procurement, outsourcing & distribution of spare parts, and transporting finished vehicles domestically or internationally and the complexity of the supply chain of automotive logistics requires process planning to achieve maximum efficiency in manufacturing.

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