Enjoy complimentary customisation on priority with our Enterprise License!
The finished vehicles logistics market size is estimated to grow at a CAGR of 5.03% between 2022 and 2027. The market size is forecast to increase by USD 24.15 billion. The growth of the market depends on several factors such as the growing automotive industry, global expansion of automobile manufacturing plants, and the growth of intermodal freight transportation.
This finished vehicles logistics market report extensively covers market segmentation by type (road, rail, sea, and air), service (warehousing and transport), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, View Report Sample
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing automotive industry is one of the key factors driving the growth of the global finished vehicle logistics market. The automotive industry is witnessing significant growth globally owing to a rise in automobile sales, especially in countries such as Brazil. The growth in the population is leading to the need for automobiles for convenient travel, which is driving the market growth. Some of the major automobile-producing countries are China, the US, Japan, Germany, and India.
Thus, as the production of automobiles increases, there will be a rise in the need for finished vehicle logistics for transporting and warehousing these vehicles from the manufacturing plant to dealer showrooms. Hence, it will lead to the growth of the market focus during the forecast period. Therefore, the growth of the automotive industry is expected to fuel the growth of the global finished vehicles logistics (FVL) market during the forecast period.
The emergence of electric vehicles will fuel the global finished vehicle logistics market growth. Many end-users of vehicles are focusing on improving fuel efficiency and operational costs. This has led to the emergence of electric vehicles, which include hybrid and fully electric vehicles. Electric vehicles are considered an economical alternative to traditional ICE (internal combustion engine) vehicles. Electric vehicles also reduce pollution levels.
Moreover, these vehicles release significantly less (50% less) greenhouse gases when compared with ICE vehicles. Owing to such benefits, many consumers are shifting their focus to electric vehicles (EVs). For example, in July 2019, Nissan Motor Co. Ltd. (Nissan Motor) started delivering its Leaf EV in Australia and South America. The cars are exported from Nissan Motor's plant in Sunderland, UK. Such a rise in the production and export of EVs will eventually lead to an increase in the demand for efficient finished vehicle logistics during the forecast period.
The shortage of truck drivers is a major challenge for the global finished vehicles logistics market growth. Many drivers in the trucking industry are on the verge of retirement, and only a limited number of truckers are entering the profession. The shortage of drivers is mainly attributed to the low remunerations for drivers in most urban and semi-urban markets in various countries. Furthermore, truck drivers are expected to work approximately 70 hours a week and live away from home for weeks, which can affect their health and lifestyle.
Moreover, many truck drivers face minor to major illnesses. The shortage of drivers means that fewer goods can be moved in a timely fashion, which hinders companies from selling more. This can pose a challenge to the end-users of finished vehicles. The shortage of drivers is already leading to delays in orders and making goods more expensive as the freight rates continue to increase. Such factors can eventually restrict the growth of the finished vehicle logistics market.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Finished Vehicles Logistics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS: The company offers finished vehicles logistics services such as transportation of completed cars, trucks, and other vehicles from manufacturers to dealerships and customers around the world
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The road segment is estimated to witness significant growth during the forecast period. The road segment is one of the most common modes of transportation and is widely used for finished vehicle logistics, especially in countries across North America and Europe. In addition, using road transportation, the single customs document process provides a seamless movement of goods even across various states and countries.
Get a glance at the market contribution of various segments Request Free PDF Sample
The road segment was the largest segment and was valued at USD 49.85 billion in 2017. Moreover, finished vehicles logistics utilize road comprises various transport vehicles such as trucks, lorries, and vans. Furthermore, as road transportation services need high investment and expertise that adds significantly to operational costs, many companies are outsourcing these services to third-party logistics providers. In addition, the road transportation industry in various countries, such as India, South Africa, and Mexico, is dominated by the presence of unorganized operators. Unorganized operators comprise local truck operators and drivers that transport shipments within cities. Organized operators are facing stiff competition from small intermediaries that avoid taxes and thrive on differential prices that prevail across regions. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
Based on service, the segment is classified into warehousing and transport. Warehousing is an essential component of the global finished vehicle logistics market as the value chain involves the storage of vehicles before they are transported to their destination. In addition, effectiveness is essential in warehousing in finished vehicle logistics for the efficient operation of the automotive industry. Moreover, it helps ensure that vehicles are delivered to customers (automotive dealers) in a timely and cost-effective manner while also maintaining the quality and condition of the vehicle. Furthermore, warehousing enables manufacturers and distributors to manage their finished vehicle inventory efficiently. A warehouse offers a centralized location to store and track vehicles, ensuring that they are available when needed and reducing the risk of stockouts. Warehousing can also facilitate the efficient distribution of finished vehicles. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the marekt growth during the forecast period.
APAC is estimated to contribute 50% to the growth of the global market during the forecast period.
For more insights on the market share of various regions Request Free PDF Sample now!
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. APAC is expected to have the largest market share in the global finished vehicles logistics market, due to the growing automotive market in the region. In addition, the automotive market growth is attributed to the rise in population in the region, which has created an increase in the overall demand for automobiles. For example, according to The World Bank Group, the total population in China was 140 million in 2021. Similarly, the total population in India was 138 million in 2020.
Furthermore, with the rising population, the finished vehicles logistics market in APAC is expected to grow due to the presence of a large consumer base for both food and beverage and healthcare product suppliers. Moreover, with the rise in disposable incomes and the growing aging population in countries such as Japan and China, the expenditure on healthcare in this region is witnessing strong growth rates. Hence, such factors are driving the market growth in APAC during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global finished vehicles logistics market witnessed a significant slowdown due to the restrictions on the movement of goods in APAC. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in the logistics sector. Such factors are expected to drive the market during the forecast period.
The finished vehicles logistics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Finished Vehicles Logistics Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
169 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 5.03% |
|
Market growth 2023-2027 |
USD 24.15 billion |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
3.9 |
|
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
|
Performing market contribution |
APAC at 50% |
|
Key countries |
US, China, Japan, India, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ACERTUS, AP Moller Maersk AS, ARS Altmann AG, BERGE INFRAESTRUCTURAS Y SERVICIOS LOGISTICOS SL, CargoTel Inc., CMA CGM SA Group, Deutsche Post AG, DP World, DSV AS, Ekol Lojistik AS, Hellmann Worldwide Logistics SE and Co KG, Jack Cooper Investments Inc., Koopman Logistics Group BV, Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Omsan Lojistik AS, Ryder System Inc., Schnellecke Group AG and Co. KG, SNCF Group, United Parcel Service Inc., and XPO Inc. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
