North America Automotive Logistics Market - Size, Share & Industry Trends 2024-2032

North America Automotive Logistics Market Synopsis:

North America Automotive Logistics Market Size Was Valued at USD 74.71 Billion in 2023, and is Projected to Reach USD 127.30 Billion by 2032, Growing at a CAGR of 6.10% From 2024-2032.

The North America Automotive Logistics Market is defined as the management of automotive spare parts and finished vehicles from their manufacturing point to their final destination in North America. Automotive logistics entails those providers that plan and co-ordinate the transportation of automotive products from manufacturers to the end users, and these may include third party logistics (3PL) companies, transporters as well as warehouse firms. This market covers road, rail, air, and sea transport distinguished between parts and component for manufacturing and end products and finished vehicles. The continued advancement of e-commerce and customer expectations for fast delivery also play a role in increasing the growth of this area.

The base for the automotive logistics market is very essential for the total automotive industry as it provides the necessary framework for the supply chain of automotive products within North America. As the market targets electric vehicles (EVs), there is a need to transport high-tech and sensitive parts and logistics providers for these vehicles must be able to meet this requirement. Logistics providers have embraced new technologies of automation, robotics and IoT (Internet of Things) with a view of cutting cost, time and increasing efficiency. The market leverage on robust road networks and railway, highways and ports thereby making it easier for the 3PL logistics in managing the stock flow within the markets.

One of the most important patterns of the examined market segment is the growing-digitization and the active usage of IT solutions, in the North American automotive logistics market. Technological advancement such as Blockchain, Artificial Intelligence, and big data are today making its way into the logistics industry. These technologies can include tracking and approval of packages in transit and the ability to predict equipment failures and optimize routes for both vehicle and package delivery that not only boosts efficiency, but also provides a better experience for the customer. Being able to fulfill consumer needs to have improved delivery times and a better visibility of its products, the market has been requiring higher levels of digital platforms that can monitor the vehicles or parts from the production line up to the dealer or final consumer.

North America Automotive Logistics Market Trend Analysis:

Digital Transformation and Automation

• One of the key drivers affecting automotive logistics in North America is the concern for digitalization and automation. The automotive industry and its supply chain is rapidly internationalizing, and 3PLs are putting a great deal of capital into IT tools to effectively and efficiently manage the surge in demand for speed and delivery assurance. This implies utilization of artificial intelligence (AI) for forecasting and monitoring; Internet of Things (IoT) devices for monitoring; and blockchain to guarantee improved trust in the supply chain.
• There is also great automation especially in storing and order management part of logistics where automation is handling automotive spare parts and actual automobiles. More supportive trends are being identified with digital platforms that offer full visibility from the supplier to the customer and this is assisting firms in improving their agility regarding disruptions in their supply networks.

E-commerce and Electric Vehicle Growth

• One of the new trends in the NAAM market is the rise of the demand for electricity vehicles (EVs) and e-commerce. Considering this transition towards EVs, logistics providers face new complexities and possibilities in managing new complex battery materials, charging technology components, and innovative automotive parts. Also, the growth of e-commerce increases customers’ requirements for storage and delivery time, contributing to the growth of demand for fast and efficient logistics services.
• Car manufactures are forced to respond to the calls in the current market concerning delivery within the shortest time possible, particularly for spare parts and accessories. That suggests logistics organisations particularly focused on managing and delivering these novel and innovative products, and those who are developing and offering enhanced delivery channels such as the last mile play into these growth areas.

North America Automotive Logistics Market Segment Analysis:

North America Automotive Logistics Market Segmented on the basis of mode of transportation, logistics type, end user and country.

By Mode of Transportation, road segment is expected to dominate the market during the forecast period

• The North American automotive logistics market by road transportation has higher demand and utilizes higher flexibility and cost efficiency. It can facilitate the swift and efficient transportation of automotive parts and components as well as finished automobiles from the manufacturing firms to dealers and distribution outlets, and customers respectively. The American continent, specifically North America has an elaborate network of roads including highways and interstates therefore the transportation of goods by trucks has also developed deeply rooted routs. This mode is ideal for small distances and many deliveries that are common in last one-kilometre delivery for automotive companies making it the choice of many automotive logistics providers. Similarly, road transportation is required to supply automotive spare parts and accessories needed to meet the constantly increasing e-sales.
• However, rail transportation is also another important leg of the operations of the automotive logistics in North America for a cross-country transportation services or movement of large lots of auto parts and set of vehicles. Rail is a well-defined mode of transportation when it comes to transporting heavy automotive parts and components over large distant because it is cheaper and more fuel-efficient when compared to road transportation. There is a variety of automotive logistics service providers, major railroads including Canadian National Railway and Union Pacific have automotive logistics division that offers reliable transportation solutions. Air and sea transportation are less frequently used in automotive logistics because of their costs, yet they remain vital components of international commerce, important for constantly moving high-value parts and supplies, as well as for international shipping. Airlines are crucial for the timely delivery of urgently needed components because they can deliver goods quickly, and seas transport continue being vital for intercontinental deliveries such as the shipment of vehicles from manufacturing factories to other continents.

By Logistics Type, Inbound Logistics segment expected to held the largest share

• In North American automotive logistics, inbound logistics deals with transportation of materials, components and parts from suppliers to auto makers. This segment is important within the production cycle because it enables manufacturers to get the inputs they require to assemble cars. Inbound logistics are elaborate supply chains, and are frequently supplied from several locations around the world. This means they have to keep a track of their logistics including transport, storage and stock in order to ensure production is properly underway. In light of JIT manufacturing systems, inbound logistics must be closely managed to minimize waiting time and consequently act as a significant facet of automotive logistics.
• Outbound logistics implies the fitness of finished vehicles and parts from manufacturers or assembly plants to dealers, retailers or directly used by the customers. Its responsibilities encompass the management of shipment and distribution of finished products at the appropriate time. Outbound logistics is most pertinent in getting vehicles to the consumers as fast as possible, especially depending on the models of vehicles or regions. This segment can use multiple transport means that include road, rail and in some specific circumstances air as well, depending on the delivery time limits and distances. The other segment is the aftermarket logistics that is involves in the distribution process and delivery of spare parts and accessories to service centers, repair shops or the consumer. It is a fast-growing segment since the uptake of e-commerce in sourcing of aftermarket automotive parts has become the order of the day. A proper management of aftermarket supplies is essential for timely service delivery of maintenance and repair services which enhances customer satisfaction and the durability of the vehicles.

North America Automotive Logistics Market Regional Insights:

United States is Expected to Dominate the Market Over the Forecast period

• North American Automotive Logistics Market Outlook to 2023 identified that the United States is the leading country in the region. It is also the biggest car producer and car market with a large number of production and assembly sites, as well as many distribution centers throughout the country. In terms of market segment, it will be found that around 70% of the market will come from the USA in the year 2023.
• The well-developed transportation system of highways, rail linkages, and ports also strength the country’s dominant market in mobile devices. The U.S also benefits as its neighbours Mexico and Canada are some of the largest auto manufacturing powerhouses hence this makes the U.S as a key node for the automotive logistics supply chain.

Active Key Players in the North America Automotive Logistics Market

• APL Logistics (USA)
• CEVA Logistics (Switzerland)
• DB Schenker (Germany)
• DHL Supply Chain (Germany)
• Expeditors International (USA)
• GEODIS (France)
• Kuehne + Nagel (Switzerland)
• Logwin AG (Germany)
• Nippon Express (Japan)
• Panalpina (Switzerland)
• Rhenus Logistics (Germany)
• Ryder System (USA)
• XPO Logistics (USA)
• Yusen Logistics (Japan)
• ZIM Integrated Shipping Services (Israel), and Other Active Players