Market Size of Asia Pacific Finished Vehicle Logistics Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2020 - 2022 |
CAGR | 5.00 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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APAC Finished Vehicle Logistics Market Analysis
The Asia Pacific Finished Vehicle Logistics Market is expected to grow at a CAGR of 5% in the forecasted period.
The Asia Pacific Finished Vehicle Logistics market is demonstrating significant growth across multiple key indicators as it is projected to reach a total value of USD 209.90 billion by 2021. This growth is anticipated to be spurred by an increase in the scope and number of automotive companies using multiple logistics services due to changing customer preferences and the rapid development of e-commerce.
Additionally, increasing production of vehicles, especially three-wheeled vehicles, in countries such as India, Thailand, and Bangladesh, is expected to drive the demand for finished vehicle logistics services in the Asia Pacific region. Additionally, the implementation of a better regulatory framework targeting to ease the transportation of goods across the supply chain, as well as the presence of well-established automaker models, will positively influence the growth of this market. Moreover, strategic collaborations between logistics companies and automakers to increase efficiency will also further enhance market growth.
Developed countries such as Japan, China, and South Korea are the key contributors to the regional market share. Japan is the major contributor to the regional market, followed by other countries such as China, India, and Australia. Regulatory framework changes targeted at easing goods transportation across the supply chain will further stimulate growth for this industry in the Asia Pacific.
This rise can be attributed to the emergence of e-commerce, changing customer preferences, and increased production of three-wheeled vehicles in India, Thailand, and Bangladesh. Strategic collaborations between automakers and logistics companies to enhance efficiency have also positively impacted the market.
The impact of the Covid-19 pandemic on the Asia Pacific finished vehicles market has been significant. The market has suffered from a drop in demand, an ongoing shortage of parts, and supply chain disruptions. This has been due to the closure of factories, restrictions on transportation, an extended lockdown of major production centers, and a dramatic reduction in the number of customers due to lockdowns. The market has struggled to adjust to the changing conditions brought by the pandemic. Many automotive manufacturers have been pushed to the brink, and some have ceased production completely. The decrease in demand caused by the pandemic has resulted in a sharp decrease in production, with some markets being particularly hard hit. Japan, Thailand, South Korea and India are the most affected markets, with an estimated total of 41.3% reduction in production in 2020. This has led to an estimated drop in sales volume of 9.2%, with only an estimated 9.7 million vehicles produced in 2020.
APAC Finished Vehicle Logistics Industry Segmentation
The storage and post-production adjustments, technical issues, and/or pre-delivery inspections that comprise of several tests that are conducted before delivery of the finished vehicles to the customer are the main activities covered by the finished vehicle logistics service. The maker of the car assigns each finished vehicle a unique number that aids in locating the vehicle.
The Asia Pacific Finished Vehicle Logistics Market is segmented by Activity (Transport (Rail, Road, Air, Sea), Warehouse, Value-Added Services), by Logistics Service (Inbound, Outbound, Others (Reverse and Aftermarket)), by Country (China, Japan, Indonesia, Australia, Thailand, India and Rest of Asia Pacific). The report offers Market size and forecasts for the Asia Pacific Finished Vehicle Logistics Market in value (USD Million) for all the above segments.
Activity | |
Transport (Rail, Road, Air, Sea) | |
Warehouse | |
Value Added Services |
Logistics Service | |
Inbound | |
Outbound | |
Others ( Reverse and Aftermarket) |
Country | |
China | |
Japan | |
Indonesia | |
Australia | |
Thailand | |
India | |
Rest of Asia Pacific |
Asia Pacific Finished Vehicle Logistics Market Size Summary
The Asia Pacific Finished Vehicle Logistics Market is experiencing robust growth, driven by the expanding automotive industry and the increasing demand for efficient logistics solutions. The market is characterized by a significant rise in vehicle production, particularly three-wheeled vehicles, in countries like India, Thailand, and Bangladesh. This surge is further fueled by the rapid development of e-commerce and changing consumer preferences, prompting automotive companies to leverage diverse logistics services. The region's market is also benefiting from strategic collaborations between logistics providers and automakers, aimed at enhancing operational efficiency. Additionally, the implementation of improved regulatory frameworks to facilitate smoother transportation across supply chains is expected to bolster market expansion. Key contributors to the regional market include developed nations such as Japan, China, and South Korea, with Japan being the leading contributor.
The market landscape is highly competitive, with both global and local players vying for dominance. Companies are increasingly focusing on offering customized logistics services, including contract logistics, warehousing, and transportation, to meet specific customer needs. The rise of third-party logistics (3PL) and fourth-party logistics (4PL) is also notable, as the automotive sector seeks cost-effective supply chain solutions. The Asia Pacific region is witnessing a significant shift towards electric vehicles (EVs), driven by growing consumer demand for eco-friendly options. This shift necessitates more sustainable logistics solutions, prompting fleet operators to adopt strategies like pooled EV fleets and advanced data management systems to optimize routes and reduce costs. Government investments in infrastructure and logistics technology further support the market's growth trajectory, with key players such as DHL, DSV, CEVA Logistics, and Kuehne + Nagel actively expanding their operations in the region.
Asia Pacific Finished Vehicle Logistics Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Market Scenario
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1.2 Insights into Logistics Technological Advancements
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1.3 Insights into Reverse Logistics Services
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1.4 Insights into Inbound, Outbound Services, and Other Services (Vehicle Recall)
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1.5 Insights into Areas such as Contract Logistics, and Third Party Logistics Market
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1.6 Value Chain/Supply Chain Analysis
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1.7 Government Regulations and Initiatives
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1.8 Trends in Intermodal Transportation in GCC
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1.9 Impact of the COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 Activity
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2.1.1 Transport (Rail, Road, Air, Sea)
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2.1.2 Warehouse
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2.1.3 Value Added Services
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2.2 Logistics Service
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2.2.1 Inbound
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2.2.2 Outbound
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2.2.3 Others ( Reverse and Aftermarket)
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2.3 Country
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2.3.1 China
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2.3.2 Japan
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2.3.3 Indonesia
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2.3.4 Australia
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2.3.5 Thailand
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2.3.6 India
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2.3.7 Rest of Asia Pacific
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Asia Pacific Finished Vehicle Logistics Market Size FAQs
What is the current Asia Pacific Finished Vehicle Logistics Market size?
The Asia Pacific Finished Vehicle Logistics Market is projected to register a CAGR of 5% during the forecast period (2024-2029)
Who are the key players in Asia Pacific Finished Vehicle Logistics Market?
DSV, Kuhene + Nagel, DHL, CEVA Logistics and Ekol Logistics are the major companies operating in the Asia Pacific Finished Vehicle Logistics Market.