Spare Parts Logistics Market Size - By Service Type (Transportation, Warehousing, Distribution, Inventory management), Transportation mode (Road, Rail, Air, Sea), End Use (OEMs, Aftermarket supplier, Dealerships, E-commerce platforms) & Forecast, 2024 - 2032

Spare Parts Logistics Market Size

Spare Parts Logistics Market size was valued at USD 21.6 billion in 2023 and is estimated to register a CAGR of around 4.9% between 2024 and 2032. The management and coordination of the supply of spare parts within the automotive industry is referred to as automotive spare parts logistics. It includes a range of tasks such as order fulfillment, shipping, warehousing, inventory management, and reverse logistics.
 

The growing need for automobiles globally is driving a significant rise in the automotive spare parts logistics industry. To fulfill the growing demands of customers for prompt and dependable spare parts availability, manufacturers and suppliers are constantly focused on improving the logistics of their spare parts operations. Further, automation and digitization are two technological innovations that are completely changing the market and increasing customer happiness and efficiency.
 

For instance, in January 2023, CEVA Logistics collaborated with Nulogy, to improve co-packing services for automotive spare parts using their innovative cloud-based platform. By extending its application from the Fast-Moving Consumer Goods (FMCG) sector to automobile logistics through this strategic relationship, Nulogy is exhibiting its commitment to digital transformation in logistics operations and deepening its involvement with CEVA Logistics.

The timely delivery of spare parts is considered essential to mitigate downtime of vehicles or equipment. Logistics helps in the reduction of expenses related to storage, transportation, and inventory management. Businesses can minimize avoidable expenses by preventing overstocking or understocking of parts through the optimization of inventory levels and the streamlining of supply chain procedures.
 

In the spare parts logistics market, integrating modern technologies such as GPS tracking, real-time monitoring systems, and automated logistics solutions faces significant challenges. Ensuring these technologies align with diverse operational requirements and connect seamlessly with existing logistical systems can be complex, thus leading to potential delays and inefficiencies during implementation.
 

Additionally, infrastructure limitations hinder the development of robust transportation networks and storage facilities crucial for efficient vehicle distribution and spare parts management, especially in emerging markets. Addressing these challenges necessitates strategic investments in both infrastructure development and technological advancements. With the help of this, the industry can enhance overall logistics capabilities, improve efficiency, and meet the escalating global demand for automobile transport services effectively.
 

Spare Parts Logistics Market Trends

The market for spare parts logistics is shifting more towards automation and digitization as organizations look to cut expenses and increase supply chain efficiency. The logistics setting is changing, due to the introduction of technologies such as blockchain, artificial intelligence (Al), and the Internet of Things (loT). These technologies enable automated inventory management, real-time shipment monitoring, and enhanced supply chain visibility.
 

As companies seek to optimize supply chain operations and reduce their environmental impact, the adoption of intermodal transportation is becoming more prevalent, thus driving innovation and collaboration in the logistics industry. For instance, in November 2022, Omsan Logistics built an export-import line between Turkey and Slovakia in collaboration with the well-known European logistics firm, METRAS. By launching the first freight train from the Yunaska Streda Terminal in Slovakia to Istanbul, this collaboration aims to boost Turkey's railway exports, illustrating a growing emphasis on intermodal transportation solutions to improve efficiency and reduce transit times in global logistics networks.
 

Further, transporting spare parts from production facilities to different regions of the world requires specialized logistics services, including shipment, handling, customs clearance, and inland distribution. These services are essential for guaranteeing the timely and effective delivery of spare parts in the automotive and spare parts logistics business. Logistics firms are crucial to the timely provision of spare parts, the management of complex supply chains, and the fulfilment of the automotive industry's maintenance and repair requirements.
 

Spare Parts Logistics Market Analysis

Based on service type, the market is divided into transportation, warehousing, distribution, inventory management. The transportation segment accounted for a market share of 40% in 2023. As automotive supply chains are so complicated worldwide, prompt delivery of parts from a variety of geographic regions to manufacturing facilities and service centres depends on effective transportation. There is an increased need of strong transportation networks, due to rising car sales and production, particularly in emerging nations.
 

The industry's use of Just-In-Time (JIT) manufacturing techniques highlights how important accurate and dependable transportation is to lowering storage costs and inventory levels. Technology developments such as GPS tracking and real-time monitoring also improve logistical dependability and efficiency and raises the effectiveness of transportation services.
 

For instance, in June 2024, SandboxAQ announced the development of a navigation system powered by AI and quantum technology. This represents a significant advancement in the spare parts logistics market. In logistics, particularly for spare parts management, precision and reliability in navigation are crucial to ensure timely deliveries and minimize downtime. Traditional GPS systems can be vulnerable to attacks or signal interference, which can disrupt logistics operations and delay the transport of critical spare parts. By integrating AI and quantum technology into navigation systems, SandboxAQ aims to enhance accuracy and resilience against such disruptions.
 

Based on transportation mode, the spare parts logistics market is categorized into road, rail, air, and sea. The road segment held a major market share of 43% in 2023, due to its enormous infrastructure, affordability, and flexibility. Direct routes and door-to-door delivery are made possible via road transportation, which is essential for effective and timely logistics. It offers flexibility in scheduling and routing, making it especially beneficial for short to medium distances. Its broad use is also supported by the well-established network of roads and highways, which makes it easier to move automobiles and automotive parts across different locations.
 

For instance, in January 2024, the Public Investment Fund (PIF) launched "Tasaru Mobility Investments," an investment company dedicated to enhancing local supply chain capabilities for Saudi Arabia's automotive and mobility industry. This initiative supports road transport for automotive spare parts, aiming to bolster the nation's logistics infrastructure.
 

Asia Pacific dominated the global spare parts logistics market with a share of over 39% in 2023, attributed to several factors such as highly developed infrastructure, which includes vast road networks and cutting-edge logistical facilities, facilitating the effective distribution and transportation of auto parts. Further, major automakers and a strong aftermarket sector contribute to the increased need for spare parts logistics.
 

In addition, a large number of in-use automobiles and strong consumer buying power generate a consistent demand for replacement parts. The robust technological adoption in Asia-Pacific also improves the efficiency of logistics with innovations like automated systems and real-time tracking.
 

The spare parts logistics market in North America, particularly in the U.S. and Canada, is driven by a strong automotive industry and advanced technological adoption. In the U.S., the significant number of vehicles necessitates efficient logistics for timely maintenance and repair services, bolstered by innovations such as automated warehousing and real-time tracking. Further in Canada, the market benefits from robust industrial sectors and cross-border trade, emphasizing the need for efficient logistics solutions. Both countries are investing in technologies to enhance operational efficiency and meet growing customer expectations.
 

Europe has a substantial market share in the automotive and spare parts logistics sector because of its developed automotive sector, emphasis on sustainability, and sophisticated transportation network. The region's need for effective logistics solutions is further fueled by the presence of major automakers and a strong aftermarket industry.
 

Spare Parts Logistics Market Share

DHL, UPS and CEVA hold a significant market share of over 8% in the spare parts logistics industry. DHL's extensive global network and advanced technology solutions provide robust and efficient logistics services. UPS leverages its strong transportation infrastructure and innovative delivery solutions to ensure timely and reliable spare parts distribution.
 

CEVA Logistics, with its comprehensive range of logistics services and expertise in various industries, offers customized solutions for complex supply chain challenges. These companies continuously invest in technological advancements and sustainability initiatives to enhance their market positions, driving efficiency and meeting the evolving demands of the market.
 

Spare Parts Logistics Market Companies

Major players operating in the spare parts logistics industry are:

• DHL Supply Chain
• UPS Supply Chain Solutions
• CEVA Logistics
• DB Schenker
• XPO Logistics
• Kuehne + Nagel
• DSV
   

Spare Parts Logistics Industry News

• In August 2023, Dubai's Neweast General Trading formed a strategic alliance with DP World's Jebel Ali Free Zone (Jafza). This partnership, which will invest USD 136.2 million, intends to create the largest spare parts distribution center in the region, spanning over 165,000 square meters. It is expected to facilitate order fulfillment and efficient delivery of over 160 premium aftermarket brands, meeting a variety of automotive needs.
   
• In Febuary 2024, Embraer, has announced a pivotal contract with Scoot, Singapore Airlines' budget carrier, introducing the Embraer Collaborative Inventory Planning (ECIP) program to foster more efficient expendable spare parts inventory management. This innovative program is designed to substantially reduce operational expenditures by fine-tuning inventory levels, where Embraer shoulders the primary investment in inventory, substantially lightening the financial load typically borne by airlines.
   

The spare parts logistics market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue ($Bn) from 2021 to 2032, for the following segments:

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Market, By Service type

• Transportation                      
• Warehousing             
• Distribution               
• Inventory Management                    

Market, By Transportation mode

• Road   
• Rail     
• Air      
• Sea

Market, By End-use

• OEMs (Original Equipment Manufacturers)             
• Aftermarket Suppliers           
• Dealerships                
• E-commerce Platforms                      
• Others            

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

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