The North America automotive logistics sector comprises companies that provide transportation, warehousing, freight, and supply chain management services to automakers and suppliers. Major services include component part logistics, new vehicle logistics, reverse logistics of parts, recalls, and warranty claims. Automotive parts are shipped between international production plants and distribution facilities through modes like road, rail, sea, and air. Logistics players also support key processes in the supply chain like customs clearance, port operations, and intra-continental vehicle transportation.
The global North America automotive logistics market is estimated to be valued at US$ 74.71 billion 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.
The North America automotive logistics market is expected to be flourished by increasing demand for last mile delivery services. Last mile delivery refers to the final leg of a shipment that transports goods from a transportation hub to the final destination. With the growth of e-commerce and the on-demand economy, last-mile deliveries have become critical for automotive logistics players as well. Companies are focusing on faster and more efficient last-mile delivery to improve the customer experience. For example, logistics providers are partnering with technology companies to implement solutions like predictive analysis, vehicle tracking, robotics, and autonomous vehicles that can optimize delivery routes and schedules.
Another driver for the market is rising vehicle production and sales in the region. According to projections, annual vehicle sales in the U.S. are expected to increase from around 15 million units in 2023 to over 16.2 million units by 2030. A growing customer base will correspondingly increase the demand for automotive transportation and warehousing needs. Logistics players are continuously expanding their warehouse capacities and fleet sizes to efficiently handle higher shipment volumes in the future. They are also investing in technologies and mechanization to improve productivity and automation. This supports the automakers’ just-in-time production needs and ensures a seamless supply of parts.
The North America automotive logistics market is segmented into outsourcing, insourcing and third-party logistics. The outsourcing segment currently dominates the market owing to the cost advantages for OEMs in outsourcing logistics activities to third-party logistics providers. This enables automakers to focus on their core manufacturing competencies.
Political: Trade policies impact the movement of vehicles and parts across borders. Recent trade wars between US and China negatively impacted the market.
Economic: A strong economy in US and Canada supported demand for new vehicles, positively impacting the logistics market. Rising inflation impacted operating costs.
Social: Younger consumers prefer owning vehicles for mobility rather than ownership, increasing demand for used vehicles and parts logistics.
Technological: Adoption of technologies like IoT, AI and blockchain helped improve efficiency, track shipments in real-time and reduce costs. Electrical vehicles also influenced logistics approaches.
The Global North America Automotive Logistics Market Size is estimated to be valued at US$ 74.71 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
The North America automotive logistics market is expected to witness high growth supported by strong economic growth in the region and recovery in vehicle sales post pandemic. The US market accounted for the largest share in 2023 owing to presence of major automakers and tier-1 suppliers. Canada is also emerging as an important export hub and witnessed fastest growth during the forecast period owing to new facility openings by logistics companies and automakers
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 are focusing on expansion, M&A activities and adoption of automation and digital technologies to enhance service offerings and gain market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it