More partnerships between automobile manufacturers and logistics firms means automobile and component manufacturers have better control of both inbound and outbound transportation services, shorter lead times, and can provide more timely deliveries.
The increasing number of partnerships among automotive manufacturers and logistics companies is positively impacting the growth of automotive logistics market. For instance, in 2019, Fiat Chrysler Automobiles (FCA) extended its contract with CEVA Logistics in Brazil to transport FCA’s aftermarket components. According to the partnership, CEVA Logistics agreed to carry FCA’s aftermarket components to 500 Fiat dealers across Brazil.
The global automotive logistics market was worth US$203 billion in 2018 and is expected to grow at a CAGR of 6.6% between 2019 and 2027 for a total of $370.8 billion by 2027.
A key trend which is expected to predominantly affect the automotive logistics market in the coming years is the integration of smart technologies and autonomous vehicles to boost the automotive logistics market.The integration of advanced technologies would foster the businesses of the logistics companies transporting automobiles and automotive components.
Cloud technology is one of the key technologies which is anticipated to drive logistic companies’ growth in the years to come. Cloud technology offers several benefits to the transportation firms, including better customer experience in terms of speed, lower prices, and the ability to track goods. It also makes it easier for logistics service providers to manage their businesses efficiently, allowing continuous communication with suppliers and customers. These factors are projected to gain traction in the near future and will have significant impact on the automotive logistics market.
The automotive logistics market by services is segmented into transportation, warehousing, packaging processes, integrated service, and reverse logistics.Transportation holds the highest market share.
Automotive players are using advanced transportation services to ensure on-time delivery of automobiles. These factors are expected to drive the transportation services for automotive logistics market in the coming years.
The overall automotive logistics market size has been derived using both primary and secondary sources. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the automotive logistics market.
Multiple primary interviews were also conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive logistics industry.
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Source: ReportBuyer
