Automotive Logistics Market

Automotive Logistics Market Size, Share & Outlook 2025-2033:

The global automotive logistics market size reached USD 299.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 495.5 Billion by 2033, exhibiting a growth rate (CAGR) of 5.17% during 2025-2033. The growing demand for aftermarket services, rising focus on improving transportation routes to reduce carbon footprint, and increasing adoption of digital technologies to enhance visibility are some of the factors impelling the market growth.

Automotive Logistics Market Analysis:

• Major Market Drivers: The market is experiencing moderate growth owing to the rising production of vehicles. Additionally, the increasing popularity of electric and hybrid vehicles and the demand for custom logistics services like battery transport and recycling are contributing to the market growth.
• Key Market Trends: Key drivers include the shift towards sustainable practices because of environmental concerns and regulatory pressure to reduce carbon emissions. The integration of digital technologies, such as the internet of things (IoT), blockchain, and big data analytics, is improving efficiency and visibility in the supply chain.
• Geographical Trends: Asia Pacific dominates the market owing to the presence of established production facilities, rising investments in improving transportation infrastructure, and the growing adoption of innovative logistics solutions.
• Competitive Landscape: Some of the major market players in the industry include BLG Logistics Group AG & Co. KG, Bollore Logistics (Bolloré SE), C.H. Robinson Worldwide Inc., CEVA Logistics (CMA CGM), CFR Rinkens LLC, Dachser Group SE & Co. KG, Deutsche Post DHL Group, DSV A/S, Hellmann Worldwide Logistics SE & Co. KG, Kerry Logistics Network Ltd. (SF Express Co. Ltd.), Kuehne + Nagel International AG, Neovia Logistics Services LLC, Nippon Express Co. Ltd., Penske Logistics Inc. (Penske Truck Leasing Co. L.P.), and Ryder System Inc.
• Challenges and Opportunities: Challenges include high transportation costs, supply chain disruptions, and regulatory hurdles. However, opportunities in adopting advanced technologies like blockchain for transparency and enhancing collaboration between manufacturers and logistics providers are improving the automotive logistics market revenue.
   

Automotive Logistics Market Trends:

Sustainable practices and environmental concerns

Automakers and logistics providers are under pressure to reduce their carbon footprint and adopt environment-friendly practices. This consists of improving transportation routes to cut emissions, purchasing electric and alternative fuel vehicles for logistics fleets, and implementing energy-efficient warehousing solutions. The move towards sustainability is not just assisting companies in reaching environmental targets but also improving their brand image and operational efficiency, creating a significant business opportunity in the automotive logistics market for providers offering green and eco-friendly solutions. In 2024, Magenta Mobility introduced environment-friendly EV logistics options in Chennai with a goal of reducing carbon emissions in supply chains for business-to-consumer (B2C), fast-moving consumer goods (FMCG), e-commerce, and logistics industries. This program helps India achieve its objectives of decreasing carbon emissions by introducing 3W and 4W EVs.

Adoption of advanced technologies

The widespread adoption of digital technologies, such as the internet of things (IoT) sensors and blockchain to enhance visibility, efficiency, and traceability across the supply chain and reduce lead times is positively influencing the market. In 2024, at the Global Smart Logistics Summit, Cainiao Group introduced Level 4 autonomous vehicles for the widespread delivery of express packages on public roads. The CEO highlighted Cainiao's leading role in digitalization and the application of artificial intelligence (AI), along with its objective to enhance its worldwide logistics system in order to assist Alibaba's online shopping platform and reach international markets.

Growing demand for aftermarket services

Aftermarket services providing spare parts, accessories, and components for maintaining and repairing vehicles are offering a favorable automotive logistics market outlook. The increasing number of vehicles worldwide is driving the demand for reliable aftermarket products. Automotive logistics providers play a crucial role in making sure spare parts are easily accessible in different places, allowing for quick repairs and minimizing vehicle downtime. Furthermore, the expansion of online shopping in the automotive industry is catalyzing the demand for effective transportation services. In 2024, MEMA, known as The Vehicle Suppliers Association, collaborated with eShipping to introduce the MEMA & eShipping Partner Program. This program provides a strong transportation management platform to improve logistics solutions in the automotive aftermarket sector. It offers a range of services such as storage, delivery, and dedicated freight agents for managing shipments.

Automotive Logistics Market Segmentation:

IMARC Group provides an analysis of the key automotive logistics market trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on type, activity, mode of transport, logistics solution, and distribution.

Breakup by Type:

• Finished Vehicles
• Automotive Parts
   

Automotive parts account for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the type. This includes finished vehicles and automotive parts. According to the report, automotive parts represented the largest segment.

Automotive parts account for the majority of the market share as they are usually sourced from various suppliers across different geographical regions. This multi-tiered supply chain complexity is driving the need for efficient logistics networks to ensure seamless coordination and timely delivery of components to assembly plants. Additionally, automobile manufacturers are utilizing just-in-time (JIT) production methodologies to optimize costs and reduce inventory. Besides this, the adoption of effective logistics management is guaranteeing the safe transportation and storage of vehicle components in regulated settings, reducing the chances of harm or regulatory violations. Furthermore, leading market players are focusing on global sourcing strategies to gain a competitive edge in the market.

Breakup by Activity:

• Warehousing and Handling
• Transportation and Handling
   

Transportation and handling hold the largest share of the industry

A detailed breakup and analysis of the market based on the activity have also been provided in the report. This includes warehousing and handling and transportation and handling. According to the report, transportation and handling accounted for the largest market share.

Transportation and handling represent the largest segment as they facilitate the efficient and timely movement of vehicles and automotive parts. Additionally, the increasing emphasis of automotive manufacturers on JIT production is offering a favorable market outlook. JIT depends on the timely and accurate supply of parts to production lines, reducing inventory levels and holding costs. Furthermore, the increasing need for quicker vehicle delivery is motivating car makers to allocate resources towards efficient transportation systems in order to guarantee prompt delivery to dealerships, meet customer expectations, and improve the overall customer experience. Moreover, the rising complexity of the supply chain of the automotive industry is driving the need for efficient transportation and handling.

Breakup by Mode of Transport:

• Roadways
• Airways
• Maritime
• Railway
   

Railway represents the leading market segment

The report has provided a detailed breakup and analysis of the market based on the mode of transport. This includes roadways, airways, maritime, and railway. According to the report, railway represented the largest segment.

Railway accounts for the majority of the market share due to its ability to transport large quantities of vehicles or automotive parts over long distances. This capacity for transporting large amounts of goods offers a cost-effective solution for manufacturers looking to transport significant quantities in one shipment. It can be combined with various transportation methods like trucks and ships, creating intermodal links for smooth vehicle and part movement across different areas. Apart from this, various railway networks and terminals are generally strategically located near major manufacturing hubs and distribution centers. Furthermore, utilizing railway for long-distance transportation helps alleviate road congestion and offers faster delivery of goods. Moreover, rail cars have ample space to accommodate multiple vehicles and large automotive components. In 2024, Maruti Suzuki introduced India's first in-plant railway siding at its Gujarat plant to enhance automotive logistics. This project aims to improve effectiveness, decrease traffic congestion, and reduce carbon emissions through the use of electric trains to transport vehicles.

Breakup by Logistics Solution:

• Inbound Logistics
• Outbound Logistics
• Reverse Logistics
• Aftermarket Logistics
   

A detailed breakup and analysis of the market based on the logistics solution have also been provided in the report. This includes inbound logistics, outbound logistics, reverse logistics and aftermarket logistics.

Inbound logistics oversees the transportation of raw materials and parts from suppliers to manufacturing plants. The main emphasis is on improving supply chain operations, minimizing time gaps, and securing a continuous stream of resources for manufacturing vehicles.

Outbound logistics manages the transfer of completed vehicles from factories to dealerships and customers. It includes organizing transportation, storage, and delivery to guarantee vehicles are promptly available in preferred locations, ultimately enhancing client satisfaction.

Reverse logistics deals with the return of products, such as recalled vehicles or defective parts, from individuals or dealerships to manufacturers. Reverse logistics helps efficiently handle returns, minimize waste, and manage repairs or recycling processes in an environmentally responsible manner.

Aftermarket logistics involve delivering spare parts, accessories, and maintenance components to dealers, repair centers, and end users. It guarantees a consistent flow of spare parts, assisting in the upkeep of vehicles and customer service, all while improving inventory control. The increasing automotive logistics demand is further driven by the need for timely delivery of aftermarket components to maintain vehicle performance and user satisfaction.

Breakup by Distribution:

• Domestic
• International
   

Domestic dominates the market

The report has provided a detailed breakup and analysis of the market based on the distribution. This includes domestic and international. According to the report, domestic represented the largest segment.

Domestic accounts for the majority of the market share as automotive companies need extensive domestic distribution networks to cover vast geographical areas within a country. Moreover, the domestic distribution process concentrates on the last step of the supply chain, guaranteeing the prompt and effective transportation of vehicles and parts to dealerships. Besides this, these distribution networks are positioned near main cities and customer populations, which helps decrease delivery times and improve responsiveness to market needs. Additionally, they assist dealerships by ensuring the inventory of vehicles and spare parts is kept current. Moreover, effective domestic distribution allows manufacturers to synchronize new product launches across different regions.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest automotive logistics market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for automotive logistics.

Asia Pacific accounts for the largest market share as many international manufacturers have established production facilities in the region, resulting in extensive inbound and outbound logistics activities that drive the demand for logistics services. Additionally, the geographical proximity of Asia Pacific countries to other major markets facilitates international trade and cross-border logistics, making it an essential node in global automotive logistics networks. In addition, the governing bodies in the region are consistently putting money into enhancing transportation infrastructure such as ports, railways, and road networks to improve the effectiveness of logistics activities. Additionally, implementing new logistics solutions enhances Asia Pacific's status in the worldwide automotive logistics industry. In 2024, Jayud Global Logistics established a collaboration with iMile to offer comprehensive supply chain services in China, with a specific emphasis on cross-border logistics. This partnership aims to improve iMile's operational efficiency by simplifying transportation and customs procedures to facilitate the growth of e-commerce between China and the Middle East.

Competitive Landscape:

• The automotive logistics market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include BLG Logistics Group AG & Co. KG, Bollore Logistics (Bolloré SE), C.H. Robinson Worldwide Inc., CEVA Logistics (CMA CGM), CFR Rinkens LLC, Dachser Group SE & Co. KG, Deutsche Post DHL Group, DSV A/S, Hellmann Worldwide Logistics SE & Co. KG, Kerry Logistics Network Ltd. (SF Express Co. Ltd.), Kuehne + Nagel International AG, Neovia Logistics Services LLC, Nippon Express Co. Ltd., Penske Logistics Inc. (Penske Truck Leasing Co. L.P.), Ryder System Inc, etc.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Businesses are actively involved in different strategic efforts to meet the changing needs of the digital retail environment. They are embracing green initiatives like using EVs, optimizing transportation routes to reduce emissions, and incorporating eco-friendly packaging. These companies are incorporating technology solutions, including IoT sensors and tracking systems, to offer immediate insights into shipments, improve operations, and boost supply chain effectiveness. Moreover, various automotive logistics companies are focusing on the development of supply chains for automotive manufacturers, ensuring a seamless flow of materials, components, and finished vehicles from suppliers to manufacturing plants and then to dealerships or end users. In 2023, Ryder System, Inc. launched its RyderElectric+ fleet solution, securing its first multi-year contracts with Land ‘N’ Sea Distributing and Servientrega International. These contracts involved the lease of electric cargo vans and comprehensive support for charging infrastructure. The initiative marked Ryder’s commitment to advancing sustainable transportation solutions.

Automotive Logistics Market News:

• July 2023: Penske Truck Leasing finalized the purchases of Star Truck Rentals, Inc. and Kris-Way Truck Leasing, Inc., increasing its fleet by 2,800 vehicles and introducing 25 new locations in Michigan, Indiana, Maine, and New Hampshire. The incorporation bolstered Penske's standing in transportation services.
• February 2024: Ryder System, Inc. finalized the purchase of Cardinal Logistics, which serves the grocery, omnichannel, building products, consumer packaged goods, and automotive. This acquisition would enhance the company’s status as a top customized dedicated transportation company in North America. It would also add 200 operating locations, 2,900 power vehicles, and 3,400 professional drivers to Ryder's network.

Automotive Logistics Market Report Scope:

Key Questions Answered in This Report:

• How has the global automotive logistics market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global market?
• What is the impact of each driver, restraint, and opportunity on the global market?
• What are the key regional markets?
• Which countries represent the most attractive market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the market?
• What is the breakup of the market based on the activity?
• Which is the most attractive activity in the market?
• What is the breakup of the market based on the mode of transport?
• Which is the most attractive mode of transport in the market?
• What is the breakup of the market based on the logistics solution?
• Which is the most attractive logistics solution in the market?
• What is the breakup of the market based on the distribution?
• Which is the most attractive distribution in the market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global automotive logistics market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, automotive logistics market forecasts, and dynamics of the market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the automotive logistics industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.