The automotive logistics market plays a vital role in the transportation of automobile spare parts, raw materials, and finished vehicles through different transport modes such as roads, railways, marine, and airways. Various automotive components such as engines, axles, drive shafts, steering systems need efficient logistics for their transportation. Automotive logistics services help in tracking and delivering components as well as finished vehicles just-in-time through their extensive supply chain infrastructure.
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 Opportunity
The expansion of the e-commerce sector across North America is estimated to provide lucrative growth opportunities for the automotive logistics market. The increasing penetration of online shopping for automobile spare parts and accessories has compelled logistics companies to ramp up their supply chain and last-mile delivery infrastructure. Moreover, the rising demand for one-day or same-day delivery of auto components among OEMs and retailers is propelling the integration of last-mile deliveries and warehouse automation among logistics players. The ability of logistics companies to ensure timely and hassle-free delivery will be a key determinant for garnering a greater share of the burgeoning e-commerce automobile parts market over the forecast period.
Porter’s Analysis
Threat of new entrants: The North America automotive logistics market requires large capital investments and established supply chain networks making the threat of new entrants moderate.
Bargaining power of buyers: Automobile manufacturers have high bargaining power as logistics providers depend greatly on a small number of large OEMs for revenue.
Bargaining power of suppliers: The presence of several logistics providers limits supplier power however service differentiation is low increasing competition.
Threat of new substitutes: Few alternatives exist for automotive logistics primarily due to regulatory standards and nature of operations.
Competitive rivalry: Intense competition exists among existing players which continually strive to enhance vehicle movement efficiency and reduce warehousing costs.
SWOT Analysis
Strength: Established infrastructure and diverse service portfolio catering to supply chain requirements. Rising vehicle production and sales support market growth.
Weakness: Vulnerable to economic cyclicality and fluctuations in vehicle demand impacting scale of operations. Rising fuel costs and driver shortages affect profitability.
Opportunity: Growing vehicle exports from Mexico present opportunities for integrated logistics solutions. Adoption of advanced technologies such as IoT and analytics can optimize operations.
Threats: Stringent emissions regulations increasing compliance costs. Rising globalization of supply chains enhances competition.
Key Takeaways
The North America automotive logistics market is expected to witness high growth supported by rebounding vehicle sales following COVID-19 disruptions. 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.
The US dominates owing to large production volumes and proximity to major vehicle manufacturing hubs. The Mexican market is growing rapidly driven by export orientation of companies and lower labor costs providing competitive advantages. The US market accounted for the largest share of over 65% in 2024 driven by strong vehicle demand and domestic production exceeding 17 million units annually. Mexico has emerged as an important regional hub for exports to South and Central America with logistics providers supporting integrated production-distribution networks. Operational synergies across the North American region enhance efficiency.
Key players: 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 players leverage economies of scale and technological capabilities for innovative supply chain solutions.
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