North America Automotive Logistics Market Estimated To Witness High Growth Owing To Rising Automotive Production
The North America Automotive Logistics Market is estimated to be valued at Us$ 74.71 Bn or Mn 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 caters to logistics services for finished vehicles as well as automotive components. Key services offered includes transportation & distribution, warehousing, packaging, tracking and traceability among others. These services help in seamless movement of vehicles and parts from production plants and ports to dealerships.
Market Dynamics:
Rising automotive production in North America: North America accounts for around 15% of global vehicle production, with countries like US and Mexico being key manufacturing hubs. Increasing domestic demand as well as exports is expected to push automotive production higher over the forecast period. This rise in production would subsequently drive demand for efficient logistics services.
Growing e-commerce in automobile aftermarket parts: Online sales of automotive parts have witnessed significant growth over past few years. This has created demand for sophisticated logistics services to efficiently fulfill online orders. Key players are focusing on collaborations and innovations to cater growing e-commerce demand.
SWOT Analysis
Strength: The North America automotive logistics market has a strong customer base as U.S. and Canada have large automobile markets. Logistics companies in this region have advanced transport infrastructure and sophisticated supply chain networks to efficiently handle automotive logistics. They also have skilled labor force and technical expertise to deal with complex logistics requirements of automobile manufacturing and distribution.
Weakness: High operating costs due to stringent environment and worker safety regulations increase the overall cost of logistics operations in North America. Labor shortages in the logistics industry also affect efficient transport and warehousing of automotive parts and vehicles.
Opportunity: Growing popularity of electric vehicles and self-driving cars will open up new business avenues for logistics players to handle specialized transport and infrastructure needs for advanced automotive technologies. Outsourcing of non-core logistics functions by OEMs also creates opportunities for third-party logistics providers.
Threats: Trade restrictions and geopolitical tensions can disrupt automotive supply chains. Natural disasters like hurricanes may cause shutdowns at manufacturing plants and ports affecting logistics operations.
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 increasing automobile production and sales in the region. The U.S makes up majority of the market owing to large presence of automakers and components manufactures. Regional analysis
The U.S accounts for over 80% share of the North America automotive logistics market due to concentration of major automakers such as General Motors, Ford and Tesla. Canada is another major market led by growing operations of global auto giants. Both countries have sophisticated logistics infrastructure to efficiently transport vehicles and parts within the region and internationally.
Key players operating in the North America automotive logistics incorporate 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.
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