Automotive Logistics Market Size, By Service, By Transportation, By Vehicle, By Distribution, By Activity, Growth Forecast 2025 – 2034

Automotive Logistics Market Size

The global automotive logistics market size was valued at USD 266.8 billion in 2024 and is estimated to register a CAGR of 6.9% between 2025 and 2034. The total logistics involved in automotive transportation continues to witness significant growth, driven by a rise in vehicle registrations as well as the need for organized warehousing of automotive parts. OICA stated that there was a 12.3% increase in passenger car registrations in 2022-2023 and this registered an over 57 million total registrations.
 

With trade and production of vehicles continuing to increase across all countries, there is a strong demand for robust and valid dispatch solutions, and this can especially be said for the global scene. Also, a rising trend in investing in enhanced transportation fleets that offer reduced emission facilities are making a positive impact on the outlook of the automotive logistics market. The market is quite literally on the brink of expansion, and that is thanks to this turn towards greener logistical solutions that will ensure sustainability shoots up.
 

With the increase in demand for electric cars, the required automotive logistics services are also evolving. In 2023, when compared to the previous year, International Energy Agency recorded an astonishing increase of 3.5 million in global electric car sales, which amounts to roughly a 35% increase. With an increase in supply, logistics companies will have to come up with new solutions to transport electric vehicles and their batteries.
 

Appropriately, transporting EV’s and batteries requires ample temperature-controlled environments as well as specialized battery transportation vehicles. Such logistical support enhances a company’s competitive edge when it comes to transporting ecofriendly and emission friendly vehicles. EV’s sales across the globe are substantially increasing and so is the need for emission friendly transportation logistical services, and this is where automotive sector targeted logistical services provide ample scope for growth.
 

Automotive Logistics Market Trends

• The global rise in e-commerce and online retail has also increased the need for automotive manufacturers and their businesses to develop enhanced logistical support. According to Statista, global sales for retail e-commerce are predicted to exceed USD 4.1 trillion by 2024. The increase in online sales for automotive related items has led to the optimization of logistical transportation and delivery services.
   
• E-commerce creates a need for speedy and efficient logistics service for parts delivery and vehicle transportation. As the industry advances, the need for reliable inventory systems, order fulfillment services, and last mile delivery becomes greater. This opens new doors for logistics that can work on improving their offerings in order to meet the growing automotive logistics market demand.
   
• The automotive logistics sector is getting a big facelift thanks to the incorporation of new technologies such as Artificial Intelligence and Machine Learning into the picture. The generative AI in Logistics Market is also on track to spearhead an economic boom, being valued at USD 864.3 million in 2023 and projected to grow at a rate of 33.2% from 2024 until 2032. Such advanced technology employed, allows for accurate planning of transportation routes, estimating demand, and real-time localization of goods at an unprecedented scale.
   
• AI technology transforms the industry by enabling logistics companies to gain direct access to the data needed to make informed decisions regarding their supply chain management, thus maintaining the cost at a lower point and enhancing delivery time. More so, Machine learning technology aids in optimizing the routing of vehicles further ensuring cost-effective outcomes. The transformation brought by the technological shift allows for enhanced efficiency in operational processes and maintains customer satisfaction in the automotive industry by providing cost-effective and reliable transport services.
   
• The deficiency in infrastructure in rural or developing areas will be affecting the automotive logistics market expansion negatively. There are no sufficient road networks, and neither is their modern vehicle transport and other logistical services in rural areas and this has the direct impact on the movement of vehicles and their parts. These issues lead to longer cycle times, higher costs and also limit the logistics services to new unmapped territories.
   
• The constraints in the logistic infrastructure in certain regions will impede the growth in the automotive logistic industry, as the manufacturers and the logistic operators have difficulty filling those needs.
   

Automotive Logistics Market Analysis

Based on transportation, the market is divided into road, rail, sea and air. In 2024, the road segment held a market share of over 42% and is expected to cross USD 210 billion by 2034.
 

• Across the world, governments are focusing on development of road infrastructure and investing large amounts. Networks boost logistics by reducing the time and costs of transporting goods with vehicles. Increased logistics network improves speed with which vehicles and parts are delivered and reduce the dependence of the road branch in the supply chain and last mile deliveries of parts within the automotive industry.
   
• The type of requiem consumers have is pushing road logistics in this case for example the automotive market to broaden. It is noticeable that economy and commerce in the retail sector are continuously growing and thus necessitating the need for faster and better moving of parts and even completed vehicles which propels the need for reliable transporting systems. For the automotive logistics market to grow, road freight transportation allows for speeds that are unparalleled and direct to routes that place the economy at an advantage.
   
• Considering the more rigorous emission regulations being adopted throughout the globe, the road transport sector is demonstrating more willingness to embrace eco-friendly transportation solutions. The growth of electric trucks alongside sustainable logistics solutions is transforming the combative automotive logistics market and enabling firms to lessen their environmental damage. Such innovations support the future development of the road transportation mode in the automotive logistics industry.
   

Based on vehicle, the automotive logistics market is categorized into passenger car and commercial vehicle. The passenger car segment held a market share of 65% in 2024.
 

• The worldwide growth in the production and registration of passenger cars, especially in the economies in transition, is the major factor behind the growth of the automotive logistics market. As the number of vehicles produced increases, the need for effective transportation, storage, and distribution of parts increases and enhances the role of the passenger car segment in the logistics supply chain and fosters the growth of the market.
   
• The growth of logistics technology including real-time tracking systems and automated inventory management systems is increasing the efficiency of the supply chain in the sector of passenger car logistics. These technologies assist in inventory control, route optimization, and timeliness of delivery to customers which lowers costs and increases profitability and thus contributes to the growth of passenger car logistics in the automotive marketplace.
   

Based on service, the automotive logistics market is divided into inbound, outbound, reverse and, aftermarket. Inbound segment dominated the market accounting for over USD 115 billion in 2024.
 

• With such a rapid increase in global automotive production, the demand for inbound automotive logistics has been higher. Because of the vast supply and logistics networks automakers must deal with, the effective management and transportation of parts and raw components becomes crucial to ensure seamless manufacturing. The introduction and use of sophisticated inbound automotive logistics services have enabled the automotive industry to click, much more than we are used to, the global click many of us are used to.
   
• Inbound automative logistics services have also gotten better on the account of cross border trade as well as global supply chain integration. Integrating international supply chains has reduced cost across the board, improving the efficiency and speed of inbound logistics, and this increased speed means more parts and materials to be moved which mean the market grows further. For the automotive, integrating global supply chains and reducing the cost of cross border trade fuels infra border logistics.
   

Based on distribution, the automotive logistics market is divided into domestic and international. Domestic segment is projected to grow at the CAGR of 7.5% during the forecast period.
 

• Policy makers too have hand in hand helped improve the automotive logistics market by offering tax breaks, subsidies and mandatory improvement on the supply chain, growing the efficiency further making it possible for automakers to rely on local manufacturers, boosting the demand for domestic logistics much more than what was present before. So the government and companies together are working to reap the benefits of greater market share.
   
• The need for logistic services has increased within the domestic market due to the growing e-commerce and DTC sales in the automotive industry. Customers now prefer to buy vehicles online and get them delivered to their homes. The increasing number of online platforms for selling vehicles necessitates marketing mix adjustments and more efficient domestic distribution systems pertaining to these goods, and fuels the national automotive logistics services market.
   

China dominated the global automotive logistics market with a major share of over 38% in 2024.
 

• China emerging as the most productive manufacturing hub for automobiles, its large consumer base further emphasises the massive scope the country has to dominate the auto logistics industry. The surge in demand for logistics solutions can be attributed to the increasing domestic vehicle production as well as the increase in Chinese car exports. For the Chinese car exports to succeed in the global marketplace, the demand for operationally effective shipping and supply chain factors is attaining a significant rise.
   
• The demand for car logistics services continues to rise owing to government initiatives and infrastructure improvements which include building up new transportation hubs, fixing the road systems and such. This makes China a key contender in the automotive logistics department.
   

Europe’s automotive logistics market benefits from the region’s advanced automotive manufacturing industry, including major players such as Volkswagen, BMW, and Daimler. The high demand for both passenger cars and automotive parts fuels the need for efficient logistics services.
 

• Germany being the strongest automotive industry, has made Europe an important geographical area in the context of the auto export market. The established infrastructure that the region has including key ports and transport routes ensure the seamless provision of services to the automotive industry. Additionally, there is a growing need for EVs and new innovative logistics practices that can be sustainable. These two factors are contributing towards the expansion of this industry in Europe.
   
• North America commands a high percentage of the automotive logistics industry thanks to its trio of automobile giants: General Motors, Ford, and Tesla. Increasing exports in finished vehicles and the growing automotive parts demand also play a role. A jump in the popularity of electric vehicles (EVs) alongside tougher environmental policies lead automakers to new opportunities within the specialized logistics market.
   
• Also, the automobile manufacturing growth in this particular region is being fueled due to the presence of ports, railways, and highways; North America’s infrastructure is relatively stronger compared to that of other continents. Due to the expansion of EVs within the region, there will be an immediate boost in demand for logistics services.
   

Automotive Logistics Market Share

DHL Supply Chain, XPO Logistics, Kuehne + Nagel, DSV, United Parcel Service, Inc, DB Schenker, and SNCF Logistics hold a significant market share of over 38% in the automotive logistics industry. Efficiency, speed, cost-effectiveness, and sustainability being the top priorities, DHL is one of the frontrunners within the automotive logistics sector. The business has drastically focused on its digital transformation in order to increase visibility throughout the supply chain. Integrating technologies such as Artificial Intelligence (AI) and robotics has aided DHL improve their operation procedures, cost reduction, and delivery timelines. Kracking down on environmental sustainability and transitioning into the world of electric automobiles has cemented DHL’s hold within the global automotive logistics market.
 

United Parcel Services competes in the automotive logistics industry with a considerable competitive advantage arising from the global network and information technology at their disposal. Their emphasis on supply chain strategies, real-time system surveillance, and dynamic coordination of deliveries allows car manufacturers and suppliers to easily work with them. Furthermore, UPS is one of the users that actively invests in eco-friendly logistics options which include alternative fuel vessels and carbon-neutral transport options.
 

Automotive Logistics Market Companies

Major players operating in the automotive logistics industry include:

• CEVA Logistics
• DHL Supply Chain
• DSV
• Expeditors International
• Imperial Logistics
• Kuehne + Nagel
• Panalpina
• Ryder System
• SNCF Logistics
• XPO Logistics
   

The global automotive logistics market is characterized by international and regional more pronounced regional segments allowing providers to cater for unique customer needs for the supply chain which includes international competition because they have been acquiring other companies and expanding their multi service offerings which include inbound logistics, outbound logistics and post sales services. By incorporating advanced technologies such as remote tracking, blockchain for supply chain monitoring, and predictive analysis of research data, they have strengthened their foothold in the international markets especially those with complex automotive environments.
 

Regional players stay competitive thanks to their customization and cost management capabilities that meet domestic issues like compliance and infrastructure. They make use of international partnerships and see innovation as a route out which transcends being a regional company. The increasing complexity of global supply chains and heightened sustainability demands on logistics and electric and self-driving vehicles’ logistics solutions are for sure pushing regional suppliers to look for innovations or partner with world leaders.
 

The landscape will be more characterized by consolidations due to the forecasted increase in M&As as the local players enhance their technological advancements to contend with international companies. The combination of these factors is expected to alter the structure of competition in the field of automotive logistics significantly enhancing efficiency and creativity in the process.
 

Automotive Logistics Industry News

• Mahindra Logistics Ltd. signed a deal on November 2024 with Indian Vehicle Carriers Pvt. Ltd (IVC) to launch a division 2×2 logistics which is primarily going to work in launching assetised operations in outbound automotive logistics. Mahindra Logistics is going to be the majority stakeholder of 2×2.
   
• In February 2024, ORTEC was able to deliver a solution that addresses and combines both the finished goods and manufacturing operational needs of any organization. The ORTEC Manufacturing Solution Suite offers valuable insights and planning tools that allow organizations to effectively optimize their supply chains and reduce costs.
   
• In February 2024, SYNC Auto Logistics launched its next generation AI fueled Technology infrastructure which is going to enable the company to transform the auto logistics industry as we know it. This system provides real time optimization from quoting and booking through tracking and post-delivery of the logistics functions.
   

The automotive logistics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Mn) and volume (TEU) from 2021 to 2034, for the following segments:

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Market, By Service

• Inbound
• Outbound
• Reverse
• Aftermarket

Market, By Transportation

• Road
• Rail
• Sea
• Air

Market, By Vehicle

• Passenger car
  • Hatchback
  • Sedan
  • SUV
  • Others
• Commercial vehicle
  • Light duty
  • Medium duty
  • Heavy duty

Market, By Distribution

• Domestic
• International

Market, By Activity

• Warehousing
• Transportation

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia