Enclosed Car Transportation Service Market Size

The global enclosed car transportation service market size was valued at USD 724.2 million in 2023 and is projected to grow at a CAGR of 7% between 2024 and 2032. The rising popularity of luxury and classic cars drives demand for enclosed transportation services. Owners of these high-value vehicles prefer enclosed transport to protect their investments from weather, road debris, and potential damage during transit. As luxury car sales increase and more individuals invest in classic automobiles as collectibles, the need for specialized, secure transportation grows.

For instance, as of May 2024, the Society of Indian Automotive Manufacturers reported that cumulative sales of seven luxury carmakers reached 45,311 units, a 20.5% increase in FY2024. Moreover, luxury SUV demand surged 34% to 27,489 units, while luxury sedan sales grew 6.5% to 17,569 units. In conclusion, the rise in luxury vehicle ownership is driving growth in the market, meeting the evolving needs of affluent car buyers.

This trend is further fueled by the increasing number of car shows, auctions, and enthusiast events worldwide, which often require the safe movement of valuable vehicles over long distances. The enclosed car transport sector benefits from this niche market's growth, offering the premium service that establishes car owners' demand.

The rise of online car sales platforms and cross-border vehicle transactions is boosting the enclosed car transportation service market. As consumers become more comfortable purchasing vehicles sight unseen and from distant locations, the need for reliable, damage-free shipping increases. Enclosed transport provides an extra layer of security and protection, making it an attractive option for both sellers and buyers in these transactions. This driver is particularly significant for high-end or rare vehicles sold internationally.

The growth of global automotive e-commerce platforms and the ease of conducting long-distance sales create new opportunities for enclosed transport services to facilitate these transactions, ensuring vehicles arrive in good condition to their new owners across cities, states, or even countries.

Enclosed Car Transportation Service Market Trends

As the automotive industry moves towards electrification, enclosed car transportation services are incorporating electric and hybrid vehicles into their fleets. This transition aims to reduce carbon emissions, lower operating costs, and comply with stringent environmental regulations. Electric carriers offer benefits such as reduced fuel consumption, lower maintenance, and quieter operation, which are advantageous for urban deliveries.

For instance, in April 2023, German logistics specialist ARS Altmann Automobillogistik incorporated the Scania P 25, featuring a Kässbohrer body and trailer, into its daily transport operations. The 230-kWh battery-electric Scania P 25 is now utilized for distribution transport, with the Kässbohrer body and trailer ensuring efficient, safe, and quick vehicle loading and unloading.

However, challenges include limited range, longer charging times, and the need for charging infrastructure along transport routes. With advancements in battery technology and the expansion of charging station networks, the adoption of electric and hybrid carriers in the enclosed car transport sector is expected to increase. For instance, the Electric Vehicle Charging Station Market is predicted to showcase about 27% CAGR between 2024 and 2032.

Enclosed vehicles offer superior protection but have reduced carrying capacity compared to open vehicles. This limitation can hinder a company's ability to meet fluctuating demand, particularly during peak seasons like auctions or car shows. Fewer vehicles per trip can lead to longer client waiting times, decreasing customer satisfaction and resulting in lost revenue opportunities. Additionally, the careful loading and unloading of high-value vehicles can cause inefficiencies, further limiting capacity. Companies must optimize routes and schedules while maintaining high service quality, a complex balancing act.

Enclosed Car Transportation Service Market Analysis

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Based on vehicles, the market is segmented into passenger vehicles and commercial vehicles. In 2023, the passenger vehicles segment accounted for over 65% of the market share and is expected to exceed USD 800 million by 2032. The market for passenger vehicles is experiencing significant seasonal fluctuations. Demand peaks during winter in colder regions as car owners seek to protect their vehicles from harsh weather. Activity also increases in spring and fall when collectors move their vehicles between seasonal residences.

There is a growing trend towards personalized, door-to-door enclosed transport services driven by individuals relocating for work, snowbirds moving seasonally, and car enthusiasts purchasing vehicles from distant locations. Transport companies are now offering more flexible, customer-centric services that pick up and deliver vehicles directly to specified addresses. For instance, in May 2023, CEVA Logistics signed a 10-year lease agreement with its parent company, CMA CGM, to lease four roll-on/roll-off vessels from Eastern Pacific Shipping.

This move marks CEVA's entry into the vehicle shipping market, enabling it to offer owned and controlled capacity to automotive customers and provide flexible shipping options and end-to-end services. The company also offers door-to-door solutions, delivering finished vehicles directly from manufacturing facilities through its network of port connections. Improved logistics software supports efficient route planning and scheduling, even for single-vehicle transports. The convenience and added protection of enclosed transport are attracting a broader range of consumers beyond luxury car owners.

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Based on the distribution channel, the enclosed car transportation service market is divided into direct sales and indirect sales. The direct sales segment held around 65% of the market share in 2023 due to several key factors. The direct sales segment is rapidly digitalizing, with more companies launching online booking platforms and mobile apps. This shift streamlines the customer journey, enabling clients to easily schedule, track, and manage car transportation services. A strong digital presence broadens service providers' reach, enhances operational efficiency, and reduces administrative costs.

User-friendly interfaces and transparent pricing are essential to attract tech-savvy consumers, making digital channels crucial in marketing strategies for enclosed car transportation services. In the direct sales segment, exceptional customer service is becoming a key differentiator. Companies are investing in staff training to deliver personalized and responsive service, recognizing that customer satisfaction drives repeat business and referrals. Enhanced communication channels, such as real-time updates and dedicated support lines, build trust and loyalty. Offering flexible scheduling and tailored transport solutions further improves customer experience, helping companies capture a larger market share in the market.

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The U.S. is considered the dominating region in the North American enclosed car transportation service market and is expected to exceed USD 1 billion by 2032. The demand for enclosed car transport in the region is increasing due to the need for secure shipping of high-value vehicles, including luxury, vintage, and exotic cars. Owners prefer this method for its superior protection against weather, road debris, and potential damage during long-haul transport. This trend is driven by car collectors, auto auctions, and manufacturers transporting vehicles for special events.

In Europe, the region is focusing on sustainability and eco-friendliness. Stringent environmental regulations are prompting companies to invest in low-emission vehicles and innovative transport solutions to align with the European Union's green initiatives. The market is adapting to the growing popularity of electric vehicles (EVs), requiring specialized transport services. The rise in cross-border vehicle transport due to expanding automotive markets is increasing demand for enclosed transportation services. Enhanced safety measures and comprehensive insurance coverage are becoming standard as consumers seek assurance for their high-value vehicles during transit.

The Asia Pacific enclosed car transportation service market is evolving rapidly, driven by a booming automotive industry and rising disposable incomes. Countries like China and India are seeing increased luxury vehicle sales, boosting the need for secure transportation solutions. Urban expansion and infrastructure development are improving connectivity, making enclosed transport services more accessible. Growing consumer awareness of vehicle maintenance and protection is driving demand. Companies are leveraging technology, such as GPS tracking and mobile apps, to enhance transparency and efficiency. Partnerships with local dealerships and automotive manufacturers are becoming more common to capture market opportunities.

Enclosed Car Transportation Service Market Share

Allied Van Lines, Montway Auto Transport, and A1 Auto Transport collectively held a substantial market share of over 10% in the enclosed car transportation service industry in 2023. These industry leaders are pivotal in driving growth through their innovative transportation solutions. Allied Van Lines has implemented a customer-centric strategy to enhance its enclosed car transportation services. The company offers flexible scheduling and route planning, allowing customers to choose the most suitable options. Additionally, Allied invests in high-quality transport vehicles with advanced security features to ensure vehicle safety during transit.

Montway Auto Transport emphasizes efficiency and accessibility in its enclosed car transportation services. The company uses a streamlined online platform for easy booking and instant quotes, appealing to tech-savvy customers. Montway partners with a network of vetted carriers to ensure reliable and high-quality service, which is essential for enclosed transport.

Enclosed Car Transportation Service Market Companies

Major players operating in the enclosed car transportation service industry are:

• A-1 Auto Transport
• Allied Van Lines
• American Auto Shipping
• AmeriFreight Auto Transport 
• Beacon Shipping
• Easy Auto Ship
• Montway Auto Transport
• SGT Auto Transport
• Sherpa Auto Transport, LLC
  

Enclosed Car Transportation Service Industry News

• In July 2024, Montway Auto Transport, a leading third-party logistics brokerage in the car shipping industry, introduced real-time vehicle shipment tracking. Partnering with technology provider Ship.cars, this program offers customers 24/7 real-time visibility of shipment status and access to all inspection and delivery documents. This solution allows customers to quickly access shipment information, eliminating the need to contact drivers or customer service for updates.

• In October 2023, A1 Auto Transport partnered with the Nevada Trucking Association to enhance its motor vehicle shipping services. Known for reliable and affordable vehicle shipping, A1 Auto Transport aims to expand its reach and improve reliability across the United States through this collaboration. The company anticipates this partnership will result in improved services for its clients.
  

The enclosed car transportation service market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and fleet size (Units) from 2021 to 2032, for the following segments:

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Market, By Vehicle

• Passenger vehicles
• Commercial vehicles

Market, By Transportation Mode

• Rail freight
• Air transport
• Truck transport

Market, By Distribution Channel

• Direct sales
• Indirect sales

Market, By End Use

• Individuals
• Dealerships
• Automotive OEM
• Rental car companies

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
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa