Global Automotive 3PL Market Size (2024 - 2029)

The automotive third-party logistics market is experiencing significant growth, driven by the increasing need for cost reduction and efficiency in supply chain management within the automotive sector. The market's expansion is influenced by the shift towards localized production and diversified sourcing strategies, particularly in response to global disruptions like the COVID-19 pandemic. The demand for comprehensive logistics services, including inventory management and just-in-time delivery, is rising as the industry seeks to streamline operations. Technological advancements and the growth of e-commerce further contribute to the market's development, with Asia Oceania emerging as a key region due to its substantial automotive production capacity.

Market Size of Global Automotive 3PL Industry

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Automotive 3PL Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 7.00 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Low

Major Players

Automotive 3PL Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Automotive 3PL Market Analysis

The Global Automotive 3PL Market is expected to register a CAGR of 7% within the next 5 years. The market is set to gain traction from the increasing adoption of third-party logistics (3PL) for reducing operating costs and investments.

  • The outbreak of the COVID-19 pandemic across the globe compelled car manufacturers to focus more on localizing their production. This was because the heavy dependence on a single region put them at high risk. China and Taiwan are the primary production hubs of semiconductors used in vehicles. Since the third quarter of 2020, the industry was facing shortages of raw materials, such as steel, and this was why OEMs were striving to surge the demand to replenish their inventories. This resulted in automakers' shift towards changing sourcing strategies, which, in turn, was believed to affect the automotive logistics industry.
  • One of the critical reasons propelling the growth of the automotive third-party logistics market is the demand for these third-party logistics from the automotive sector to reduce inventory and supply chain expenses at each transaction along with their customers in the field. The need for the logistics provider is growing as the automotive industry seeks one-stop services for outsourcing services like inventory control, inbound material flow management, container management, kitting, packaging, cross-docking, reverse logistics, warehousing, transportation, and just-in-time delivery. The growth of e-commerce and new technologies impact the market for third-party automobile logistics.
  • The need for expertise to handle complex supply chain activities like international documentation procedures and the growing emphasis on adaptability and responsiveness as a result of the modern supply chain becoming more customer-centric drive the growth of the automotive third-party logistics market. Additionally, the need for third-party automotive logistics is positively impacted by rising internet and mobile usage and an increase in the number of warehouses. Further, during the forecast period, the automotive third-party logistics market participants would benefit from changes in the retail business model and technological innovation.
  • Asia Oceania is the largest market for domestic 3PL due to large-scale automobile production in China, Japan, and India. Domestic logistics include the services required to transport automotive vehicles and goods within a country and region. The automotive third-party logistics industry has grown substantially, particularly in emerging economies such as China and India. The area has witnessed growth in automotive production due to low wages, availability of raw materials, increased demand for vehicles, and the presence of major OEMs such as Toyota (Japan), Maruti Suzuki (India), and SAIC (China).

Automotive 3PL Industry Segmentation

The Global Automotive 3PL market covers different segments in the entire supply chain- Transportation, Warehousing, Distribution, Inventory Management, and other services. The automotive logistics industry also covers the electric vehicles and batteries sector.

A complete background analysis of the global automotive 3PL market includes an assessment and contribution of the sector in the economy, a market overview, market size estimation for critical segments, key countries, and emerging trends in the market segments, market dynamics, and vital component flow statistics are covered in the report. The report also covers the impact of COVID-19 on the market.

The Global Automotive 3PL Market is segmented by service (Transportation, Warehousing, Distribution, Inventory Management, and other services), by type (Finished Vehicle, Auto Components, and other types), and by region (North America, South America, Asia-Pacific, Middle East and Africa, Europe). The report offers market size and forecast for Global Automotive 3PL Market in value (USD Billion) for all the above segments.

By Type
Finished Vehicle
Auto Component
By Service
Transportation
Warehousing, Distribution, and Inventory Management
By Region
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Rest of South America
Asia-Pacific
China
India
Vietnam
South Korea
Japan
Rest of Asia-Pacific
Middle East and Africa
United Arab Emirates
Saudi Arabia
Qatar
Rest o f Middle East and Africa
Europe
France
Germany
Netherlands
Belgium
Rest of Europe
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Global Automotive 3PL Market Size Summary

The automotive third-party logistics (3PL) market is poised for significant growth, driven by the increasing need for cost-effective and efficient supply chain solutions within the automotive sector. The market is experiencing a shift as car manufacturers localize production to mitigate risks associated with reliance on specific regions, particularly in light of semiconductor shortages and raw material scarcities. This has led to a strategic pivot in sourcing and logistics, emphasizing the importance of outsourcing logistics services to manage inventory, transportation, and warehousing more effectively. The demand for comprehensive logistics solutions, including just-in-time delivery and reverse logistics, is on the rise as the automotive industry seeks to streamline operations and reduce expenses. The growth of e-commerce and advancements in technology further bolster the market, enhancing the capabilities and reach of 3PL providers.

The Asia-Pacific region stands out as a dominant player in the automotive 3PL market, fueled by robust automobile production in countries like China, Japan, and India. The region's economic dynamics, characterized by a large and growing population, drive the demand for efficient mobility solutions, thereby supporting the automotive industry's expansion. The market is highly fragmented, with numerous players offering customized services to meet industry-specific needs. Partnerships, mergers, and acquisitions are prevalent as companies seek to enhance their competitive edge and reduce costs. The region's burgeoning automotive manufacturing industry, coupled with the rising production of electric vehicles, is expected to propel market growth, supported by government incentives and the availability of raw materials.

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Global Automotive 3PL Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic Scenario

    2. 1.2 Government Regulations and Initiatives

    3. 1.3 Technological Trends in the Automotive Logistics Market

    4. 1.4 Insights into the Automotive Aftermarket and its Logistics Activities

    5. 1.5 Spotlight - Effect of E-commerce on the Traditional Automotive Logistics Supply Chain

    6. 1.6 Impact of COVID-19 on the Market (Short-term and Long-term Effects on the Industry as well as regional economy)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Finished Vehicle

      2. 2.1.2 Auto Component

    2. 2.2 By Service

      1. 2.2.1 Transportation

      2. 2.2.2 Warehousing, Distribution, and Inventory Management

    3. 2.3 By Region

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

      2. 2.3.2 South America

        1. 2.3.2.1 Brazil

        2. 2.3.2.2 Argentina

        3. 2.3.2.3 Rest of South America

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 India

        3. 2.3.3.3 Vietnam

        4. 2.3.3.4 South Korea

        5. 2.3.3.5 Japan

        6. 2.3.3.6 Rest of Asia-Pacific

      4. 2.3.4 Middle East and Africa

        1. 2.3.4.1 United Arab Emirates

        2. 2.3.4.2 Saudi Arabia

        3. 2.3.4.3 Qatar

        4. 2.3.4.4 Rest o f Middle East and Africa

      5. 2.3.5 Europe

        1. 2.3.5.1 France

        2. 2.3.5.2 Germany

        3. 2.3.5.3 Netherlands

        4. 2.3.5.4 Belgium

        5. 2.3.5.5 Rest of Europe

Global Automotive 3PL Market Size FAQs

The Global Automotive 3PL Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

DB Schenker, DHL Group, DSV, CEVA Logistics and XPO Logistics are the major companies operating in the Global Automotive 3PL Market.

Automotive 3PL Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)