The global North America Automotive Logistics Market is estimated to be valued at Us$ 74.71 Bn in 2023 and is expected to exhibit a CAGR Of 6.1% over the forecast period 2023 To 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Automotive logistics refers to the handling, storage and transportation of motor vehicles from the manufacturing plants to dealerships or ports of deliveries. It involves transportation of raw materials to manufacturing plants, dispatch of finished vehicles to various destinations, and management of demand-supply complexities. Strong economic growth, rising vehicle production and changing consumer preference for vehicle ownership are driving the growth of automotive logistics market in North America.
Market key trends:
Growing international vehicle trade is one of the key trends fueling the growth of automotive logistics market in North America. With several free trade agreements in place, vehicle export activity has grown significantly over the past few years. For instance, exports of light vehicles from Canada and Mexico to the U.S. have doubled since 2010. Canadian light-vehicle exports to the United States reached more than 2.2 million units in 2018, up from 1.1 million in 2010. Such robust growth in cross-border vehicle trade is expanding the market for automotive logistics companies as they handle increased volumes of vehicle transportation between countries. Another major trend is the preference for outsourcing of logistics activities. Vehicle OEMs are increasingly outsourcing non-core logistics functions to third-party logistics (3PL) companies to gain efficiencies, optimize costs and focus on core manufacturing competencies. This is augmenting growth of 3PL companies in the region.
Segment Analysis
The North America automotive logistics market is dominated by outsourcing segment. With increasing complexities in supply chain and distribution network of automotive industry especially for OEMs, outsourcing various logistics operations such as inbound procurement, warehousing, transportation to third-party logistics providers has become crucial. This has driven the growth of outsourcing segment in the market.
Key Takeaways
The North America automotive logistics market is expected to witness high growth, exhibiting CAGR of 6.1% over the forecast period, due to increasing vehicle production in the region.
Regional analysis
The United States dominates the North America automotive logistics market and is expected to continue its dominance during the forecast period. This is attributed to strong presence of automotive manufacturers as well as logistics companies in the country. Mexico is expected to be the fastest growing market owing to rising exports of automotive components and vehicles to the United States.
Key players
Key players operating in the North America automotive logistics market are Ceva Logistics Ag, Kuehne + Nagel International Ag, Dhl International Gmbh (Deutsche Post Ag), Ryder System, Inc., United Parcel Service, Inc., Db Schenker (Deutsche Bahn Ag), Xpo Logistics, Inc., Dsv A/S, Nippon Express Co., Ltd. and Geodis. Ceva Logistics and DHL International are currently dominating the market due to large scale operations and robust distribution networks across the region.
