Automotive logistics refers to the movement and storage of raw materials, parts, semi-finished and finished goods relating to automobile manufacturing, sales and servicing. It involves activities such as transportation and warehousing. Automotive manufacturers rely on an efficient logistics network for on-time delivery of parts to assembly plants and transportation of vehicles to dealerships. The increasing demand for light and commercial vehicles across countries like the US and Canada is driving the growth of their automotive industries. In the recent past, rising disposable incomes and availability of finance options have supported the sales of new automobiles in North America.

The global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn  in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
One of the key drivers for the growth of North America automotive logistics market is the rising automotive sales in the region. As per industry estimates, over 16 million vehicles were sold in the US in 2021, marking an increase of 3.1% compared to 2020. Similarly, automobile registrations grew by 12% to over 1.7 million units in Canada during the same period. The increasing consumer demand is prompting automotive manufacturers to boost production volumes. This in turn is propelling the demand for efficient logistics services for movement of vehicles and parts across various stages of automobile supply chain. Furthermore, the presence of major global automakers like General Motors, Ford and Fiat Chrysler with large production footprints in North America is favourably impacting the growth of regional automotive logistics industry. The region’s expansive road network also supports seamless transportation of automotive goods within North America and internationally.

SWOT Analysis

Strength: In North America, the presence of major automotive companies like Ford, GM, and Tesla provides a strong demand for automotive logistics services. The short distances between cities within countries like the US allow for efficient logistics networks. Government investments in transportation infrastructure have enhanced road and rail connectivity.

Weakness: High wages and costs associated with labor make the automotive logistics industry less competitive compared to other low-cost regions. Delays due to congestion and outdated infrastructure in some areas can disrupt supply chains.

Opportunity: Growing e-commerce will require innovative logistics solutions for vehicle parts delivery. The rise of autonomous vehicles and mobility-as-a-service models may transform automotive logistics networks. Countries like Mexico offer lower-cost options to expand near-shore operations.

Threats: Severe weather events can damage vehicles and warehouses, disrupting operations. Trade policy changes affecting NAFTA/USMCA could impact cross-border movements. Rising fuel costs may increase transportation expenditure.

Key Takeaways

North America Automotive Logistics Market Size is expected to witness high growth driven by strong vehicle production and sales across countries like the US, Canada, and Mexico.  The global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn  in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031.

Regional analysis related content comprises: The US automotive logistics market currently dominates the region with a share of over 60% backed by the huge domestic auto industry centered around Detroit, and the presence of major vehicle manufacturers and their extensive distribution networks. Canada and Mexico have grown to become important manufacturing hubs as well, contributing to increased cross-border freight movements and logistics collaboration across the NAFTA/USMCA region. Mexico in particular has experienced rapid logistics sector growth, driven by major investments from automotive OEMs and logistics providers aiming to leverage its lower costs for vehicle manufacturing and exports to the US.

Key players related content comprises: Key players operating in the North America Automotive Logistics market are Diageo, William Grant & Sons, Castle Brand, Jameson Irish whiskey, and The Old Bushmills Distillery Co. These spirits brands have built sophisticated, digitally-enabled logistics operations to transport their products from distilleries to wholesalers and retailers across the diverse North American region in a seamless manner.

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