Spare Parts Logistics Market in APAC 2017-2021

Overview of the spare parts logistics market in APAC

Research analysis on the spare parts logistics market in APAC identifies that higher profit margins for spare parts than for core vehicle sales will be one of the major factors that will have a positive impact on the market’s growth in the coming years. The improving operations of the supply chain for spare parts will help automotive companies to attain profit margins when spare parts are sold in aftermarkets since they are priced 20%-30% higher than the parts that are attached to the vehicle during its assembly. The spare parts business in China is witnessing a significant growth and it has been observed that the country’s spare parts business witnessed an overall growth of more than 20% during 2012-2016 Technavio’s market research analysts predict that this market will grow at a CAGR of more than 6% by 2021.

Improvements in technology for spare parts logistics will be one of the latest trends that will gain traction in the spare parts logistics market in APAC during the next four years. The vendors are providing advanced services for spare parts logistics services on scheduling transportation and delivery, and spare parts inventory management. The players in the market are adopting cloud-based customer relationship management (CRM) solutions to enhance the vendor-shipper relationship by providing more visibility in the supply chain process and reducing the SCM complexity.

Competitive landscape and key vendors

Owing to the presence of a considerable number of vendors, this market appears to be fragmented and competitive. The vendors in the market are focusing on M&As and this will in turn, lead to market consolidation. Price, delivery speed, reliability, and supply chain capacity are the major factors the vendors usually compete on and the level of competition among the players will intensify in the coming years due to the emergence of advanced technologies.

The leading vendors in the market are -

• CEVA Logistics
• DB Schenker
• DHL
• KUEHNE + NAGEL
• UPS

The other prominent vendors in the market are Agility, Broekman Logistics, C.H. ROBINSON, DSV, FedEx, Kerry Logistics, Ryder, Rhenus, TVS Logistics, and Yusen Logistics.

Segmentation by end-user and analysis of the spare parts logistics market in APAC

• Automotive
• Industrial
• Aerospace

During 2016, the automotive segment accounted for the major shares of this market. The segment includes commercial vehicles, passenger cars, electric vehicles, and heavy trucks, multi-utility vehicles, two- and three-wheelers, tractors, and automotive components. The low auto loan rates in the region, rise in industrialization, infrastructure development, and an increase in disposable income, will boost the growth of the automotive industry in the region, which will in turn, fuel the growth of the spare parts logistics market.

Geographical segmentation and analysis of the spare parts logistics market in APAC

• China
• India
• Japan

This market study estimates that in terms of geographic regions, China will be the major revenue contributor to the market by 2021. The country is the largest vehicle manufacturer across the globe and it has been observed that the country produced 28 million units of automobiles during 2016. With the presence of component manufacturers, the demand for spare parts logistics services will increase in the country since there is a constant need for storing and transporting these components to different locations.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the spare parts logistics market in APAC?
• What are the key market trends impacting the growth of the spare parts logistics market in APAC?
• What are the challenges to market growth?
• Who are the key vendors in the spare parts logistics market in APAC?
• What are the market opportunities and threats faced by the vendors in the spare parts logistics market in APAC?
• Trending factors influencing the market shares of China, India, Japan, and others.
• What are the key outcomes of the five forces analysis of the spare parts logistics market in APAC? 

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