Automotive 3PL Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 7.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Low |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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Automotive 3PL Market Analysis
The Global Automotive 3PL Market is expected to register a CAGR of 7% within the next 5 years. The 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 compelled car manufacturers to focus more on localizing their production. This was because the heavy dependence on a single region put them at high risk. China and Taiwan are the primary production hubs of semiconductors used in vehicles. Since the third quarter of 2020, the industry was facing shortages of raw materials, such as steel, and this was why OEMs were striving to surge the demand to replenish their inventories. This resulted in automakers' shift towards changing sourcing strategies, which, in turn, was believed to affect the automotive logistics industry.
- One of the critical reasons propelling the growth of the automotive third-party logistics market is the demand for these third-party logistics from the automotive sector to reduce inventory and supply chain expenses at each transaction along with their customers in the field. The need for the logistics provider is growing as the automotive industry seeks one-stop services for outsourcing services like inventory control, inbound material flow management, container management, kitting, packaging, cross-docking, reverse logistics, warehousing, transportation, and just-in-time delivery. The growth of e-commerce and new technologies impact the market for third-party automobile logistics.
- The need for expertise to handle complex supply chain activities like international documentation procedures and the growing emphasis on adaptability and responsiveness as a result of the modern supply chain becoming more customer-centric drive the growth of the automotive third-party logistics market. Additionally, the need for third-party automotive logistics is positively impacted by rising internet and mobile usage and an increase in the number of warehouses. Further, during the forecast period, the automotive third-party logistics market participants would benefit from changes in the retail business model and technological innovation.
- 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 grown substantially, particularly in emerging economies such as China and India. The area has witnessed growth in automotive production due to low wages, availability of raw materials, increased demand for vehicles, and the presence of major OEMs such as Toyota (Japan), Maruti Suzuki (India), and SAIC (China).
Automotive 3PL 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 continuously partners with logistics players to transport their components and finished vehicles from one location to another. With the increasing partnerships, automobile 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 will likely pick up the pace soon after governments steadily lift the various containment measures to revive the economy. Automobile production gained pace in 2022. Over the last several years, 3PL industries have steadily given specialized services and IT solutions to the manufacturer's regions outside the business's primary focus. Outsourcing automobile logistics for parts sequencing or consolidation networks has shown to be a worthwhile investment.
Growth in Asia-Pacific automotive industry
The Asia-Pacific region, which spans a surface area of 29.3 million square kilometers, is home to 60% of the world's population. Numerous nations in the region, notably China and India, are in the top ten in terms of population growth. Asia's economies and sectors are continually changing, which is not surprising given the region's growing population.
The automotive industry is one such sector. A growing population raises the need for efficient mobility. Some of the most valuable automakers in the world are said to be based in the area. With its high levels of production, the automotive industry-which encompasses the production of motor vehicles as well as aftermarket parts-generates significant sales of both passenger cars and commercial vehicles for the area. Because of this, it serves as the foundation of many Asia-Pacific economies.
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.
Automotive 3PL Industry Overview
The market is highly fragmented, with 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 are willing 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.
Automotive 3PL Market Leaders
DB Schenker
DHL Group
DSV
CEVA Logistics
XPO Logistics
*Disclaimer: Major Players sorted in no particular order
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Automotive 3PL Market News
- January 2023: CEVA Logistics, a member of the CMA CGM group, has successfully acquired GEFCO. As part of this adjustment and its merger with GEFCO, CEVA Logistics has announced the formation of a specific finished vehicle logistics organization.
- October 2022: Red Arts Capital announced that its portfolio company, Partners Warehouse, recently finished the add-on acquisition of FLEX Logistics, a third-party logistics (3PL) company based in Southern California. This was done as part of Red Arts Capital's ongoing effort to acquire premier supply chain and logistics businesses. Because of FLEX's extensive experience in warehouse management across several industries, its clients may spend more time concentrating on their core strategy by leveraging its 3PL warehouse services to meet their West Coast warehousing and distribution needs more efficiently and affordably.
Automotive 3PL Market Report - 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 Industry Attractiveness- Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 Industry Value Chain Analysis
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Finished Vehicle
6.1.2 Auto Component
6.2 By Service
6.2.1 Transportation
6.2.2 Warehousing, Distribution, and Inventory Management
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 Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
Automotive 3PL Industry Segmentation
The Global Automotive 3PL market covers different segments in the entire supply chain- Transportation, Warehousing, Distribution, 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, a market overview, market size estimation for critical segments, key countries, and emerging trends in the market segments, market dynamics, and vital component flow statistics are covered in the report. The report also covers the impact of COVID-19 on the market.
The Global Automotive 3PL Market is segmented by service (Transportation, Warehousing, Distribution, Inventory Management, and other services), by type (Finished Vehicle, Auto Components, and other types), and by region (North America, South America, Asia-Pacific, Middle East and Africa, Europe). The report offers market size and forecast for Global Automotive 3PL Market in value (USD Billion) for all the above segments.
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| Finished Vehicle | |
| Auto Component |
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management |
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Automotive 3PL Market Research FAQs
What is the current Global Automotive 3PL Market size?
The Global Automotive 3PL Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)
Who are the key players in Global Automotive 3PL Market?
DB Schenker, DHL Group, DSV, CEVA Logistics and XPO Logistics are the major companies operating in the Global Automotive 3PL Market.
Which is the fastest growing region in Global Automotive 3PL Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Automotive 3PL Market?
In 2024, the Asia-Pacific accounts for the largest market share in Global Automotive 3PL Market.
What years does this Global Automotive 3PL Market cover?
The report covers the Global Automotive 3PL Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Automotive 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Global Automotive 3PL Industry Report
Statistics for the 2024 Global Automotive 3PL market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Global Automotive 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
