Sign in

North America Automotive Logistics Market Will Grow At Highest Pace Owing To Increasing Automotive Production

Ashish Thapa
North America Automotive Logistics Market Will Grow At Highest Pace Owing To Increasing Automotive Production

Automotive logistics is defined as transportation management for new vehicles from factories and ports to destination markets as well as for parts between component suppliers and production facilities. The automotive industry is highly dependent on the efficient and seamless movement of vehicles, components and spare parts. The shift towards just-in-time manufacturing has increased the demand for streamlined logistics services tailored specifically for the automotive sector. On-time delivery of parts and materials is vital to automotive production, with delays resulting in stalled assembly lines and increased costs.

The Global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn in 2024 and is expected to exhibit a CAGR of 7.4%  over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the North America Automotive Logistics are Diageo, William Grant & Sons, Castle Brand, Jameson Irish whiskey, and The Old Bushmills Distillery Co.

The growing demand for vehicles across North America is propelling the need for efficient automotive logistics. Personal vehicle ownership is increasing steadily and longer-distance travel is becoming commonplace, driving the demand for commercial road freight.

Technological advancements such as vehicle telematics, blockchain, IoT sensors and analytics are enhancing optimization, visibility and collaboration across the automotive logistics value chain. Digital solutions allow for dynamic rerouting of shipments, optimization of load fill rates and real-time tracking of assets.

Market Trends

- Sustainability initiatives in automotive logistics: Carriers are implementing green fleet upgrades, route optimization, backhaul solutions to reduce empty miles and carbon footprint.

- Adoption of multimodal transportation: Integrating sea, rail and road freight allows balancing cost, timeliness and environmental impact based on cargo type and destination.

Market Opportunities

- Growth of electric vehicles: Logistics networks need to adapt to handling EV-specific components and managing larger shipments of battery packs.

- Popularity of online vehicle sales: Digital sales are driving changes in distribution networks, with a focus on personalized delivery and final mile logistics.

Impact of COVID-19 on North America Automotive Logistics Market

The COVID-19 pandemic has significantly impacted the North America Automotive Logistics Market Size. During the initial lockdown phases across the region in 2020, automobile production and sales came to a halt. This led to a steep decline in demand for logistics activities related to transportation of vehicle parts as well as finished vehicles across borders within North America. As automakers and dealerships observed inventory pile-ups, transportation of new motor vehicles reduced drastically. The restrictions on cross-border movement of goods further disrupted international supply chains.

However, as economic activities resumed amid lifted lockdowns from late 2020, the automotive logistics market has started recovering. The demand for passenger vehicles rose sharply as personal mobility gained precedence over public transportation due to safety concerns. This boosted requirements for transporting auto components as well as coordination of assembly line operations. The e-commerce boom also contributed to increasing need of delivery vehicles. To ensure smooth supply chains, logistics service providers focused on efficient warehouse management, real-time tracking of fleets, and prioritized delivery of essential parts. The wider availability of vaccines is expected to aid complete recovery of the market to pre-pandemic levels by 2024.

Geographical Regions with Highest Market Concentration in North America

In terms of value, the automotive logistics market is highly concentrated in the United States within the North American region. This is mainly due to the large scale vehicle manufacturing operations and huge domestic market for automobiles in the country. States such as Michigan, Ohio, Indiana among others house major assembly plants of leading automakers and account for bulk of the logistics revenue. Canada and Mexico also contribute substantially through their vibrant automobile and parts industries involved in extensive trade with the US and international markets.

Fastest Growing Region for North America Automotive Logistics Market

It is estimated that Mexico will emerge as the fastest growing region for the North America automotive logistics market during the forecast period. This is because several global automakers are setting up new production facilities or expanding existing ones in Mexico to leverage lower costs and access the large US market through USMCA trade pact. As vehicle and component transportation within North America and globally rises from Mexican plants, requirements for dedicated logistics infrastructure and services will proportionately increase at a rapid pace. Various initiatives are being undertaken to develop modern logistical hubs and transport networks along the US-Mexico border.

Get More Insights On: North America Automotive Logistics Market

Ashish Thapa
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more