Automotive Logistics Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Outsourcing and Insourcing), Services (Transportation, Warehousing, Packaging Processes, Integrated Service, and Reverse Logistics), and Sector (Passenger Vehicle, Commercial Vehicle, Tire, and Component)

"The global Automotive Logistics Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Services, and Sector  is expected to grow from US$ 1,97,630.46 million in 2021 to US$ 3,06,121.54 million by 2028; it is estimated to grow at a CAGR of 6.5% from 2021 to 2028.

Rising Number of Automobile Manufacturing Units Globally Boosts Automotive Logistics Market Growth
The global automotive sector is experiencing significant demand for vehicles, pressuring the vehicle manufacturers to deliver the required number of vehicles. The surge in demand for passenger and commercial automobiles across the globe is majorly driven by the increase in disposable incomes and growth in manufacturing units in developed and developing countries. In European and North American countries, an increase in the need for commercial vehicles has led these countries to experience a growth in commercial vehicle manufacturing units or assembly units. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), automobile manufacturers across the globe produced 95.7 million vehicles in 2018. With the continuously rising demand for vehicles globally, automobile manufacturers are increasingly focusing on growing the number of automobile manufacturing units. This factor has led the automobile manufacturers to focus on the logistics of the vehicle components, including wheels, tires, vehicle skeleton, and fully assembled vehicles from one location to another.

The COVID-19 outbreak caused significant disruptions in the manufacturing of various products, including cars. A sharp decline in the growth of manufacturing of automobile has impacted the growth of the global automotive logistics market. The factory shutdowns, travel restrictions, trade bans, and border lockdowns to contain the outbreak have impacted the manufacturing, supply, and sales of various automobile components. The global automotive industry is one of the major industries experiencing severe disruptions due to supply chain breaks, technology events cancellations, and factory & office shutdowns as a result of this outbreak. The automotive industry is adversely affected by temporary shutdown of 97% of the light vehicle manufacturing plants in North America and Europe.

Key Findings of Study:

Based on type, the global automotive logistics market is bifurcated into outsourcing and insourcing. In 2021, the insourcing logistics segment dominates the automotive logistics market in terms of market share, as the insourcing logistics type mandates the need for transportation system capabilities and the human capital to manage logistics tasks. Based on services, the global automotive logistics market is segmented into transportation, warehousing, packaging processes, integrated service, and reverse logistics. In 2021, the integrated service segment led the automotive logistics market in terms of the fastest growth rate. Through integrated service logistics, the companies influence the cost and can manage operations throughout the large panel of the automotive sub-segments. Based on sector, the global automotive logistics market is segmented into passenger vehicle, commercial vehicle, tire, and component. In 2021, the component segment dominated the market in terms of market share, as a completely integrated involves small, medium, and large-size components assembled by the automobile OEMs. By geography, the automotive logistics market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). Asia Pacific dominated the automotive logistics market in 2021 in terms of market share.