The global Automotive Logistics market size was estimated at USD 413.7 billion in 2023 and is projected to reach USD 700.2 billion in 2030 at a CAGR of 7.8% during the forecast period 2023-2030.
The automotive logistics encompasses the fluidity of the vehicles, components, spare parts, and raw materials of the automotive producer in the course of automotive procurement, production, and sales. The logistics in the automotive industry encompass the management of inbound transportation of raw materials and components, the management of garage transportation during the production process, and the management of transportation of vehicles and spare parts, which includes distribution processing delivery, object purchasing, loading and unloading, storage, transportation, and information processing. Due to the rapid progression of the automotive industry, the automotive logistics sector plays a crucial role in cost reduction throughout the supply chain.
The field of automotive logistics is an extensively recognized and acknowledged process that is primarily concerned with the coordination and movement of a diverse range of resources. These resources may include but are not limited to equipment, inventory, and materials that are associated with finished vehicles and automotive parts. This intricate process involves the management of the flow of goods from a particular point of origin to the point of consumption, with the ultimate goal of satisfying the unique and specific requirements of customers. The management of logistics is predominantly focused on the efficient and effective management of a wide range of daily activities that are associated with the production of a company's finished goods and services. This type of management is an integral part of the supply chain management process and is responsible for planning, implementing, and controlling the efficient, effective forward, reverse flow, and storage of goods. It is a complex and multifaceted process that requires a high level of skill and expertise to ensure that the entire logistics process runs smoothly and efficiently.
The COVID-19 pandemic has resulted in a situation where automakers have been compelled to engage in a realignment of their supply chains. The primary focus of this realignment is the localization of production in order to mitigate the risk associated with the heavy reliance on a single region. It is pertinent to note that the majority of the semiconductors that are employed in the manufacture of vehicles are sourced from regions such as Taiwan and China.
The enhancement of operational efficiency within the Freight and Logistics (FVL) industry will result in a reduction in the amount of trucks required for transportation purposes. An Irish vehicle distributor, NVD, has implemented intelligent solutions to optimize their logistical process, thereby shortening customer lead times and increasing productivity by a factor of two. This has been made possible by the ability to load 8-10 cars on a truck within a mere 45 minutes. In contrast, the process takes over three hours in Eastern European facilities. Consequently, the market growth rate will be significantly driven by the increase in efficiency within the industry. The adoption of software-based systems by automakers to manage their logistical processes has been on the rise, resulting in substantial benefits. Supply chain transparency has increased, and operational efficiency has surged. For instance, General Motors was one of the early adopters of the Outbound Logistics Software, which includes onboard asset telematics and geofencing technology, among other technologies. During the pandemic-induced crisis, the software has delivered considerably better visibility in-vehicle delivery, better truck utilization, and is being used to ramp up deliveries to companies' dealers. Thus, the digitalization of operations will positively influence the growth of the market during the forecast period.
Asia pacific to Dominate the Market
