by The automotive logistics industry plays a crucial role in managing the efficient transportation of automotive parts, components, and vehicles within the complex supply chain for automakers. Automotive parts and components have to be moved safely and efficiently from vendors to vehicle assembly plants and to dealerships. Automotive logistics providers specialize in the transportation of delicate parts and sensitive electronics along with bulky components using a range of transportation modes including ocean, rail, and truck freight. They also play a vital role in reverse logistics for damaged or recalled components. North America represents one of the largest automotive production centers globally, producing millions of vehicles annually. This high automotive output drives significant demand for integrated logistics services to support the manufacturing and distribution operations of automakers across the region.
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 key trends:
There has been a visible rise in the outsourcing of logistics and transportation services by OEMs to third-party logistics providers. Automakers are increasingly relying on experienced logistics partners to handle the complexities of their supply chain. This presents opportunities for logistics companies to offer value-added services beyond traditional transportation. Adoption of advanced technologies such as telematics, fleet management tools, and blockchain is on the rise to enhance visibility, security, and sustainability of operations. Logistics providers are investing in digital solutions to streamline planning, track shipments, and optimize resource utilization. Sustainability is another growing priority as automakers pledge to reduce carbon footprint across their supply networks. Enhanced collaboration and innovation will be essential to support the transition towards electric vehicles and advanced powertrains through greener transportation and logistics.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the North America automotive logistics market is moderate. High capital requirement and established customer base of existing players pose barriers for new entrants.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many logistics service providers and availability of substitutes. Buyers can negotiate on pricing and service quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Established logistics service providers can switch between multiple suppliers and bargain on pricing and quality of services.
Threat of new substitutes: Threat of new substitutes is moderate as other transportation modes like rail and air provide substitutes but are not easily accessible for all locations.
Competitive rivalry: The competitive rivalry is high due to presence of many regional and global players competing on pricing, network connectivity and service quality.
Key Takeaways
The Global North America Automotive Logistics Market Size 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.
The global North America automotive logistics market is expected to witness high growth. Regional expansion of automotive OEMs and tier 1 suppliers have increased outsourcing of logistics activities driving market growth. Presence of major automotive manufacturers and well-developed transportation infrastructure in the US boosts its market share. Canada and Mexico are also emerging as manufacturing hubs thereby expanding opportunities for logistics service providers.
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. Players compete on innovation, cost reduction and customer experience to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
