Enjoy complimentary customisation on priority with our Enterprise License!
The Europe spare parts logistics market size is forecast to increase by USD 5.74 billion and is estimated to grow at a CAGR of 4.99% between 2023 and 2028. The European Spare Parts Logistics Market is experiencing significant growth due to several key factors. Firstly, the increasing average age of vehicles in Europe is leading to an uptick in demand for spare parts. Secondly, the electrification of vehicles is gaining momentum, necessitating specialized logistics solutions for the transportation and storage of electric vehicle components. Lastly, the proliferation of free trade agreements in Europe is streamlining cross-border trade and facilitating the seamless movement of spare parts between countries. These factors, combined, are driving the growth of the Market.
For More Highlights About this Report, Download Free Sample in a Minute
The market is experiencing significant growth driven by advancements in digital technologies, automation, and the integration of real-time tracking systems. Third-party service providers and unauthorized suppliers pose challenges, particularly concerning counterfeit spare parts. Thus, maintaining quality and service parameters is vital. Mechanics, repair facilities, and enterprises must rely on dependable spare component supply networks to avoid downtime and ensure peak performance. Moreover, the rising average car age and the necessity for regular maintenance and repairs highlight the importance of a robust spare parts logistics framework. Efficient handling of failed parts, damaged parts, and essential components is critical for industries to operate seamlessly. The use of electronic devices and the adaptation of automated transportation methods ensure that spare parts logistics continue to meet the demands of the European market. Our researchers analyzed the data with 2023 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.
One of the key factors driving the market growth is the growing free trade agreements in Europe. The increasing free trade agreements with many developing countries are raising the volume of imports and exports in Europe. In addition, the increase in free trade agreements provides many opportunities for European manufacturers to enter other developed and developing countries.
Moreover, these free trade agreements are expected to fuel volume shipments from various manufacturing industries, including electronics and automotive. Hence, with rising industrial production, the need for spare parts increases. Therefore, such factors are positively impacting the market which in turn drives the market during the forecast period.
A key factor shaping the market growth is the over-the-air updates for ECUs. There has been an increase in electronic components in cars over the years. The main reason is due to the increased installation of driver assistance and safety features in automobiles. In addition, the complexity of automotive components and systems has further increased with the advent of in-vehicle infotainment (IVI) and connected car technologies in automobiles.
Moreover, there is an increase in the number of ECUs and program execution is rising in automobiles due to the increased demand for infotainment systems and connected vehicles. In addition, automotive OEMs have focused their efforts on developing remote OTA update firmware and software update platforms. Hence, such factors are positively impacting the market. Therefore, such factors are driving the market during the forecast period.
Shortage of skilled drivers resulting in high lead times is one of the key challenges hindering the market. The lack of skilled drivers in the spare parts logistics market can have a significant effect as it can lead to the disruption of the supply chain where the lead time is of critical importance; consequently, such a shortage of skilled drivers would increase the lead times in spare parts deliveries. The lack of interest is one of the key reasons which contributes to the lack of skilled drivers.
Moreover, the lack of interest among individuals is mainly due to low wages and long working hours. Furthermore, while the demand for drivers is increasing, many drivers are trying to shift to new jobs that offer marginally higher benefits or better working conditions. Additionally, drivers tend to change jobs frequently and over the smallest of issues with their employers. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
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.
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.
Bertelsmann SE and Co. KGaA: The company offers spare parts logistics such as Arvato supply chain solutions.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 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 forward segment is estimated to witness significant growth during the forecast period. The forward logistic segment comprises handling activities including transportation, warehousing, and value-added activities (such as packaging, labeling, and barcoding). The increasing hardware spending and growing government support for the logistics industry are significantly contributing to the growth of this segment.
Get a glance at the market contribution of various segments Download the PDF Sample
The forward segment was the largest segment and was valued at USD 15.52 billion in 2018. Moreover, the adoption of the PPP model in warehouse management and container logistics has propelled the demand for forward logistics services in Europe. Such developments are fuelling the growth of this segment which in turn will drive the market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
The market is experiencing significant growth driven by advancements in digital technologies, automation, and the integration of real-time tracking systems. This growth is pivotal for sectors such as healthcare, industrial activities, e-commerce, and supply chain management. The incorporation of the Internet of Things (IoT), artificial intelligence (AI), and blockchain has revolutionized inventory management and quality control, ensuring efficient process chain planning and consignment tracking.
Modern equipment and machinery in the aircraft industry and industrial machinery industry depend heavily on a steady supply of exchangeable parts, spares, and replacement parts. This dependence underscores the need for effective logistics services and sophisticated logistics techniques. The market also sees the consolidation of logistics networks, with a focus on green logistics and sustainability, reflecting the increasing emphasis on environmentally friendly practices. The market landscape depends on the Worn out pieces, Modification, Post production, Technical problems, Delivery, Industrial industry, Efficiency, and Global positioning system (GPS). Transportation mode plays a crucial role, with air transportation, sea transportation, and land transportation being essential to delivering parts to their assigned destination. The use of global positioning systems (GPS) and transportation management systems (TMS) enhances order entry, automated transportation, and dispatching communication systems, streamlining operations and reducing risks.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.99% |
Market Growth 2024-2028 |
USD 5.74 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.51 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bertelsmann SE and Co. KGaA, Beumer Group GmbH and Co. KG, BLG LOGISTICS GROUP AG AND Co. KG, CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DILO Co. Inc., DSV AS, Expeditors International of Washington Inc., FedEx Corp., FIEGE Logistik Stiftung and Co. KG, Fujitsu Ltd., Honda Motor Co. Ltd., Kerry Logistics Network Ltd., Kuehne Nagel Management AG, Lufthansa Cargo, SNCF Group, TVS Motor Co. Ltd., United Parcel Service Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, market growth analysis, market research and growth, market growth and forecasting, market forecasting, market report, market forecast, 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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.