No products in the cart.
Automotive Logistics Management Software Market Size - By Component (Software, Services), By Deployment (Cloud, On-premises), By Application & Forecast, 2024 - 2032
Report ID: GMI10100
|
Published Date: July 2024
|
Report Format: PDF
Download free sample
Get a free sample of Automotive Logistics Management Software Market
Get a free sample of Automotive Logistics Management Software Market
Is your requirement urgent? Please give us your business email for a speedy delivery!
Buy Now
Immediate Delivery
$4,123 $4,850
15% off
$4,280 $5,350
20% off
$5,845 $8,350
30% off
Buy now
Premium Report Details
Base Year: 2023
Companies covered: 15
Tables & Figures: 311
Countries covered: 23
Pages: 240
Download Free Sample
Automotive Logistics Management Software Market Size
Automotive Logistics Management Software Market size was valued at USD 7.8 billion in 2023 and is estimated to register a CAGR of over 6.3% between 2024 and 2032. There is a heightened need for logistics services to efficiently transport vehicles, parts, and components throughout the supply chain as the automotive industry expands. This surge in demand underscores the necessity for automotive logistics software to enhance transportation routes, oversee inventory, and monitor shipments with real-time precision.
According to the International Organization of Motor Vehicle Manufacturers, by December 2023, the total passenger vehicle production reached 67.1 million units, while commercial unit production stood at 26.4 million units. This growing automotive production is driving the need to maintain automotive logistics globally.
The expansion of the automobile industry has resulted in the creation of more complex supply chain networks including numerous suppliers, manufacturing sites, and distribution. For instance, the ocean-bound automobile traffic is anticipated to rise from 17% (YoY) to 23.7 million automobiles in December 2023, making it the fastest-growing seaborne trade across the marine industry, surpassing the previous highest of 21.5 million cars. Hence, by enabling collaboration between several stakeholders and offering visibility into the whole supply chain, automotive logistics software assists businesses in managing this complexity.
Many automakers continue to operate with outdated software and legacy systems for many facets of logistics management. It can be difficult to integrate new logistics software with these outdated systems, and it might necessitate significant data migration and customization work. It can be difficult to have real-time visibility into the complete supply chain, including inbound and outward logistics as there are many parties involved, transportation networks are intricate, and partners have differing degrees of data transparency.
Automotive Logistics Management Software Market Trends
Software suppliers for automotive logistics are progressively integrating AI and ML functionalities to enhance decision-making, optimize route planning, forecast demand, and mechanize monotonous activities. Improved visibility, efficiency, and cost reductions are made possible by these technologies in logistics operations.
For instance, in January 2023, Ceres Technology partnered with Boomi Technology. Through a specially designed Boomi connector, Nostradamus software from Ceres Technologies enhances Boomi solutions, enabling quick and simple integration of Nostradamus into its clients' current supply chain systems. Through the collaboration, Ceres has enhanced the partner ecosystem's services by providing enterprises aiming to optimize their logistics network with AI-driven supply chain risk management.
Moreover, predictive analytics and demand forecasting methods are being used by automotive logistics software to forecast future demand, optimize inventory levels, and enhance resource allocation. Businesses can make well-informed decisions and take proactive measures to address supply chain difficulties by examining historical data and industry patterns.
Automotive Logistics Management Software Market Analysis
Based on components, the market is divided into software and services. The software segment held a market size of over USD 4.3 billion in 2023. Automating logistics processes minimizes the need for manual tasks, thereby enhancing efficiency and decreasing errors. Automated systems can effectively handle intricate logistics operations.
Additionally, having real-time tracking and visibility of shipments and inventory is essential for automotive logistics. Cutting-edge software solutions offer real-time data, aiding companies in managing their supply chains more efficiently and swiftly addressing disruptions. Moreover, integrating logistics software with other enterprise systems such as ERP, CRM, and warehouse management allows seamless data flow and improved coordination across various functions.
Based on deployment type, the automotive logistics management software market is categorized into cloud and on-premises. The cloud segment is expected to hold over 63% market share in 2023. Scalability and flexibility are features of cloud-based solutions that let automotive companies swiftly scale up or down in response to changing demand and business requirements. For instance, in October 2022, Kinaxis partnered with Google Cloud to scale up its supply chain management solution- Kinaxis RapidResponse.
Through this partnership, Kinaxis' multi-cloud strategy is extended, allowing RapidResponse and its suite of related apps to be deployed on public clouds such as Google Cloud or private clouds, hosted and maintained by Kinaxis. Scalability is critical in the automotive logistics industry as supply chain requirements can fluctuate greatly due to factors including seasonality, production shifts, and market demand fluctuations. Pay-as-you-go subscription models can help automotive companies save money on capital expenses and achieve cost-effectiveness in software deployment and maintenance.
North America automotive logistics management software market accounted for over 32% of the revenue share in 2023. Technological innovation is centered in North America, where automotive businesses are looking for innovative logistics management software to obtain a competitive edge and improve their supply chains. The need for effective logistics solutions, such as software that can manage intricate distribution networks and last-mile delivery difficulties, is being driven by the expansion of e-commerce and direct-to-consumer sales channels in North America.
In the European region, the automobile industry is investing in logistics software that can optimize transportation routes, cut carbon emissions, and reduce fuel consumption due to Europe's stringent emissions rules and environmental aims. The development of inland waterways and rail systems in Europe, along with other intermodal transportation networks, presents potential for logistics software companies to offer integrated transportation solutions that boost supply chain efficiency.
The rapidly expanding automotive industry in the Asia Pacific, especially in China and India, is driving the need for logistics software solutions that can manage higher production volumes, intricate supply chains, and a wide range of automotive logistics management software market demands. Roads, ports, and logistics parks are examples of transportation infrastructure investments that open up the potential for logistics software vendors to offer solutions that enhance connection, efficiency, and visibility in Asia Pacific supply chains.
The UAE is a vital transit center for automotive goods transiting between Asia, Europe, Africa, and the Middle East due to its strategic location as a worldwide commerce hub. Transportation route optimization, customs compliance management, and timely delivery of goods across the ports, airports, and land borders of the UAE are made possible by the automotive logistics management software.
Automotive Logistics Management Software Market Share
SAP SE and Oracle dominate the market with over 11% share. SAP SE concentrates on offering integrated supply chain solutions such as Enterprise Resource Planning (ERP) systems, warehouse management systems, and transportation management systems. SAP provides solutions, such as SAP Extended Warehouse Management (EWM) and SAP Transportation Management (TM), for managing automotive logistics. These solutions seamlessly interact with other SAP modules to provide end-to-end visibility and control.
Oracle uses machine learning algorithms and advanced analytics to deliver prescriptive recommendations and predictive insights for the management of automotive logistics. To spot trends, foresee delays, and improve transportation routes and timetables for financial savings and operational effectiveness, its systems analyze enormous volumes of data.
Automotive Logistics Management Software Market Companies
Major players operating in the automotive logistics management software industry are:
Automotive Logistics Management Software Industry News
The automotive logistics management software market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD billion) from 2021 to 2032, for the following segments:
Click here to Buy Section of this Report
Market, By Component
Market, By Deployment
Market, By Application
The above information is provided for the following regions and countries: