North America Automotive Logistics Market Is Expected To Exhibit Substantial Growth Due To Increasing Demand For Efficient Supply Chain Management

https://www.coherentmarketinsights.com/market-insight/north-america-automotive-logistics-market-5145
North America Automotive Logistics Market


The North America automotive logistics market comprises logistics services for the automobile sector in the United States and Canada. These services include transportation of automotive parts as well as finished vehicles from production plants and ports to various dealerships. Automotive logistics plays a vital role in ensuring an efficient and seamless supply chain in the automobile industry by transporting vehicles and components in a cost-effective yet timely manner. The adoption of multi-modal transportation including road, rail, maritime, and air transportation enables automotive logistics providers to deliver vehicles and parts across long as well as short distances. Furthermore, value-added services like customized packaging, damage-free transportation, and warehousing solutions add to the convenience for automakers.

The Global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn in 2024 and is expected to exhibit a CAGR of 7.4%  over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the North America automotive logistics are Diageo, William Grant & Sons, Castle Brand, Jameson Irish whiskey, and The Old Bushmills Distillery Co. These companies collectively account for a substantial market share and are focusing on expanding their product portfolios and global footprint.

The rapidly growing e-commerce industry in North America presents considerable opportunities for automotive logistics providers. Areas such as last-mile delivery and reverse logistics require efficient coordination between logistics operators and automobile manufacturers. Automakers are increasingly outsourcing such value-added services to logistics companies.

Key automotive logistics players are actively pursuing global expansion through mergers and acquisitions as well as partnerships with local logistics service providers. Diageo has acquired several liquor brands to expand into new international markets. Castle Brand aims to increase presence across Asia Pacific and Europe by 2025. This allows automotive manufacturers to strengthen supply chain infrastructure in emerging automotive hubs.

Market drivers and restrain

The increasing demand for efficient supply chain management in the automotive industry is a major driver of the North America automotive logistics market. Automakers rely heavily on third-party logistics providers to handle complex distribution networks involved in delivering vehicles and components across countries and continents. Automotive logistics companies provide advanced tracking, visibility, and transportation solutions to automakers for streamlining supply chains.

Stringent emissions regulations imposed on commercial vehicles poses a restraint on the market. Logistics operators incur additional costs to upgrade fleets with compliant trucks, ships, and cargo airplanes. This impacts overall profitability and transportation costs which are ultimately transferred to automakers. Introduction of clean fuel standards also requires investment in alternative fuel infrastructure for logistics facilities.


Segment Analysis


The North America Automotive Logistics Market Size is dominated by inland transportation sub segment. This is because inland transportation accounts for the major part of the logistics operations required to transport vehicle parts and finished vehicles. It involves transportation of component and vehicles via roadways. Growing vehicle production in countries like US and Mexico is driving the demand for inland transportation services in the region. Transportation through coastal/transoceanic shipping also captures significant share as it is used for delivery of parts and vehicles overseas. Warehousing sub segment is another major segment due to the need for storing vehicle parts as well as parking finished vehicles. Distribution centers of OEMs require extensive warehousing infrastructure.

Regional Analysis


The fastest growing region in the North America automotive logistics market is Mexico. The growth can be attributed to expanding automobile manufacturing industry of Mexico. Major global automakers like General Motors, Volkswagen, Ford etc have set up or expanded their existing production plants in the country. This is increasing the demand for associated logistics services in Mexico. The US dominates the overall market currently owing to large presence of automakers, parts suppliers and ports. States such as Ohio, Michigan, Indiana house important automobile manufacturing clusters in the country.

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