Market Snapshot
| Study Period: | 2017-2026 |
| Base Year: | 2020 |
| Fastest Growing Market: | Asia-Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | >7 % |
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Market Overview
The global automotive logistics market is set to gain traction from the increasing adoption of third-party logistics (3PL) for reducing operating costs and investments. The outbreak of the COVID-19 pandemic across the globe has compelled car manufacturers to focus more on localizing their production. This is because the heavy dependence on a single region has put them at high risk. China and Taiwan are considered to be the major production hubs of semiconductors used in vehicles. Since the third quarter of 2020, the industry is facing shortages of raw materials, such as steel and this is why OEMs are striving to surge the demand to replenish their inventories. This is resulting in the shift of automakers towards the changing sourcing strategies, which, in turn, would affect the automotive logistics industry.
Asia Oceania is the largest market for domestic 3PL due to large-scale automobile production in China, Japan, and India. Domestic logistics include the services required to transport automotive vehicles and goods within a country and region. The automotive third-party logistics industry has witnessed substantial growth, particularly in emerging economies such as China and India. The region has witnessed growth in automotive production due to low wages, availability of raw materials, increased demand for vehicles, and presence of major OEMs such as Toyota (Japan), Maruti Suzuki (India), SAIC (China).
Scope of the Report
The Global Automotive 3PL market covers different segments in the entire supply chain- Transportation, Warehousing, Distribution, and Inventory Management, and Other Services. The automotive logistics industry also covers the electric vehicles and batteries sector. A complete background analysis of the global automotive 3PL market includes an assessment and contribution of the sector in the economy, market overview, market size estimation for key segments, key countries, and emerging trends in the market segments, market dynamics, and key component flow statistics are covered in the report. The report also covers the impact of COVID -19 on the market.
| By Type | |
| Finished Vehicle | |
| Auto Component | |
| Other types |
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Other Services |
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Key Market Trends
Increasing partnerships between automotive manufacturers and logistics companies
The automotive industry has been one of the prime contractors of logistics companies over the years, and the latter has benefitted massively from the automotive industry. The automotive industry players continuously partner with logistics players to transport their components and finished vehicles from one location to another. With the increasing partnerships, automobile manufacturers and component manufacturers are facilitated with better control in managing inbound and outbound transportation services, shorter lead times, and timely deliveries. The automobile industry relies heavily on outsourcing logistics services that aid in acquiring new information and expanding process flexibility.
The automotive industry is likely to pick up the pace soon after the governments across the globe lift the various containment measures steadily to revive the economy. Automobile production should gain pace from 2022. Over the last several years, 3PL industries have steadily given specialized services and IT solutions to the manufacturer's regions that are outside of the primary focus of the business. Outsourcing automobile logistics for parts sequencing or consolidation networks have shown to be a worthwhile investment.
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Growth in Asia-Pacific automotive industry
The outbreak of the Coronavirus disease (COVID-19) acted as a massive restraint on the automotive parts and components market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. However, Government incentives, growing regional demand, and easy availability of raw materials are expected to drive the market growth. The development of the auto parts manufacturing industry in Asia- Pacific is primarily driven by the growing automobile manufacturing industry, especially in countries, such as China, Korea, and India. with the rising electric vehicle production, the requirement for a large and diversified number of automotive parts and components is increasing and this would be one of the major factors propelling the market growth in the region. Increasing scrapping rates of motor vehicles and engines tend to propel the demand for original equipment engines. Scrap rates are higher in developed countries, owing to more stringent environmental regulations and thus, replacement of motor vehicles and their engines is more frequent compared to the developing world.
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Competitive Landscape
The market is highly fragmented, with the presence of several large, and small-sized companies. New players are entering the 3PL market with customized and industry-specific services. Some major players include CEVA Logistics, DB Schenker, and DHL. The 3PL players have been showing a willingness to partner with other players to reduce cost and leverage on mutual competitive advantage. Hence, the market observes a high volume of partnerships, mergers, and acquisitions. The Asia-Pacific region has a high concentration of new and emerging players.
Major Players
DB Schenker
DHL Group
DSV
CEVA Logistics
XPO Logistics
Nippon Express
Kerry Logistics
GEFCO
Hellmann Worldwide Logistics
Tiba Group
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Recent Developments
November 2021: Leading provider of integrated supply chain solutions, TVS Supply Chain Solutions acquired a controlling stake in Bengaluru-based FIT 3PL Warehousing Pvt Ltd, an end-to-end contract logistics services provider. TVS Supply Chain Solutions picked up a 69.1 percent stake in FIT 3PL, from FIT Consulting and Services Pvt Ltd. This transaction would strengthen the existing pan-India presence of TVS SCS through the addition of more than 1.50 million square foot warehouse space, unlocking new levels of efficiency and synergies.
November 2021: The logistics service provider DB Schenker pre-ordered almost 1,500 electric trucks from Volta Trucks. As part of the partnership, DB Schenker will use the first prototype of the Volta Zero under real distribution conditions in the spring and summer of 2022. The findings from these tests will be incorporated into the series production of 1,470 vehicles to be built in Steyr, Austria.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic Scenario
4.2 Government Regulations and Initiatives
4.3 Technological Trends in the Automotive Logistics Market
4.4 Insights into the Automotive Aftermarket and its Logistics Activities
4.5 Spotlight - Effect of E-commerce on the Traditional Automotive Logistics Supply Chain
4.6 Impact of COVID-19 on the Market (Short-term and Long-term Effects on the Industry as well as regional economy)
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints
5.3 Market Opportunities
5.4 Porter's Five Forces Analysis
5.5 Industry Value Chain Analysis
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Finished Vehicle
6.1.2 Auto Component
6.1.3 Other types
6.2 By Service
6.2.1 Transportation
6.2.2 Warehousing, Distribution, and Inventory Management
6.2.3 Other Services
6.3 By Region
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.1.3 Mexico
6.3.2 South America
6.3.2.1 Brazil
6.3.2.2 Argentina
6.3.2.3 Rest of South America
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Vietnam
6.3.3.4 South Korea
6.3.3.5 Japan
6.3.3.6 Rest of Asia Pacific
6.3.4 Middle East and Africa
6.3.4.1 United Arab Emirates
6.3.4.2 Saudi Arabia
6.3.4.3 Qatar
6.3.4.4 Rest o f Middle East and Africa
6.3.5 Europe
6.3.5.1 France
6.3.5.2 Germany
6.3.5.3 Netherlands
6.3.5.4 Belgium
6.3.5.5 Rest of Europe
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration Analysis and Major Player)
7.2 Company Profiles
7.2.1 DB Schenker
7.2.2 DHL Group
7.2.3 DSV
7.2.4 CEVA Logistics
7.2.5 XPO Logistics
7.2.6 Tiba Group
7.2.7 GEFCO
7.2.8 Kerry Logistics
7.2.9 Nippon Express
7.2.10 Hellmann Worldwide Logistics
*List Not Exhaustive8. FUTURE OF THE MARKET
9. APPENDIX
Frequently Asked Questions
What is the study period of this market?
The Global Automotive 3PL Market market is studied from 2017 - 2026.
What is the growth rate of Global Automotive 3PL Market?
The Global Automotive 3PL Market is growing at a CAGR of >7% over the next 5 years.
Which region has highest growth rate in Global Automotive 3PL Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Global Automotive 3PL Market?
Asia-Pacific holds highest share in 2020.
Who are the key players in Global Automotive 3PL Market?
DB Schenker, DHL Group, DSV, CEVA Logistics, XPO Logistics, Nippon Express, Kerry Logistics, GEFCO, Hellmann Worldwide Logistics, Tiba Group are the major companies operating in Global Automotive 3PL Market.
