July 24, 2024

Opportunities In Iot Connected Vehicles Anticipated To Open Up New Avenue For North America Automotive Logistics Market

The 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 Overview:

The North America automotive logistics market involves transportation, warehousing, packaging, and related quality services for finished vehicles, vehicle components and accessories across borders as well as domestically. Majority of automotive parts and vehicle components are manufactured in Mexico and Canada and transported to vehicle assembly plants located in the United States. Key use cases include final mile delivery of vehicles to dealerships, domestic and cross-border transportation of engines, transmission components, and other vehicle parts to OEM manufacturing facilities.

Market Dynamics:

Growing interconnected vehicle environment and transition towards electric vehicles are the major drivers in the North America automotive logistics market. The adoption of IoT and connected technologies in modern vehicles is enabling real-time tracking of vehicle movement and components. This is allowing automotive logistics companies to better plan transportation routes and schedules. Furthermore, the shift towards electric vehicles requires specialized transportation of heavy batteries and other EV components over long distances. Logistics companies are investing in dedicated fleets, facilities and trained workforce for handling EV logistics. Additionally, the implementation of blockchain in automotive supply chain is improving supply chain visibility and efficiency from manufacturing to the final delivery of vehicles. This is reducing delivery times and lowering overall logistics costs.

Segment Analysis

The North America automotive logistics market is dominated by the roadways segment which holds around 70% share of the total market. This segment is dominating as road transportation method is preferred for short as well as long haul transportation of automotive components and vehicles within the region. It provides flexibility, wide coverage and cost effectiveness for transportation of parts and vehicles.

PEST Analysis

Political: The automotive logistics market is supported by government initiatives and investments towards development of road infrastructure in the region. Various trade agreements promote trade within North America.

Economic: Growth of the regional economy and rising disposable incomes are increasing passenger vehicle sales, driving demand for automotive logistics. High GDP growth rate in the US and Canada provides opportunities.

Social: Changing customer preferences towards owenership of personal vehicles is favoring the automotive Industry. Young population is Early adoption of advanced technologies.

Technological: Technologies like GPS fleet tracking and intelligent transport systems help optimize transportation network efficiency and reduce costs. Digitalization aids real-time cargo tracking.

Key Takeaways

The Global North America Automotive Logistics Market Size is expected to witness high growth, exhibiting CAGR of 6.1% over the forecast period, due to rising automobile production and sales in the region. The US dominates the market owing to large scale manufacturing hubs and strong distribution networks in the country. The robust economic growth and high vehicle parc in the US supports market expansion.

Regional analysis

From a regional perspective, the US holds the major share of over 80% in the North America automotive logistics market due to presence of high number of automotive manufacturing facilities. It is witnessing fastest growth aided by factors such as huge automotive production hubs and robust distribution infrastructure. Canada and Mexico also contribute to market growth but have lower shares compared to US.

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. They provide integrated logistics solutions and transportation services to automakers in the region.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it