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The spare parts logistics market size is estimated to grow by USD 22.48 billion at a CAGR of 5.47% between 2022 and 2027. The growth of the market depends on several factors, such as an increase in electronic components trade between India and China, increasing average vehicle age, and increasing hardware spending in APAC.
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The market trends and analysis 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 market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
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 increase in electronic components trade between India and China is the key factor driving the global spare parts logistics market growth. According to ICEA, the electronics manufacturing industry grew from USD 37.1 billion in 2015-16 to USD 67.3 billion in 2020-21. The presence of a sizeable middle class in these countries increases demand for consumer goods, which drives up imports. High population density is an important engine for trade between India and China. Recently, India increased import tariffs on certain categories of products imported from China (cell phones, watches, perfumes, etc.).
However, the increase in import tariffs will have a serious impact on China's imports into India. It will take a long time. Product categories such as electronic products, electrical machines, and electronic components fall under HS Code 85 (Harmonized Code is an international standard system for commercial products). Increased trading of HS Code 85 products between these two emerging markets could increase demand in countries in the APAC region. These factors drive the market growth and trends during the forecast period.
Enhancing the operating efficiency with Industry 4.0 will fuel the global spare parts logistics market growth. Industry 4.0 is the combination of the physical and digital use of advanced technology. Industry 4.0 concepts include the Internet of Things (IoT), cloud computing, cognitive computing, and cyber-physical systems. It can transform manufacturing by streamlining operations, reducing business risk, and ensuring business growth. Industry 4.0 developments in manufacturing will increase manufacturing output worldwide. Production facilities are gradually moving to 24-hour production. Therefore, OEE has become very important in the manufacturing industry. Implementing Industry 4.0 ensures that the plant has a robust monitoring system in place to anticipate potential maintenance issues and avoid later downtime. Traditional manufacturing processes or systems do not allow personalized manufacturing. However, Industry 4.0 offers manufacturers the opportunity to customize their products by reducing the time it takes to produce them.
Industrial manufacturers are expanding their presence in different locations around the world. Industry 4.0 ensures greater connectivity to all these locations. Spare parts logistics supply chain efficiency can be improved by monitoring and planning for fluctuations in production and demand. Network flexibility with the help of Industry 4.0 offers the advantage of being able to move operations between different facilities as required. The increasing penetration of Industry 4.0 will increase the efficiency of industrial manufacturers and have a positive effect on requirements. Such advantages are likely to drive market growth during the forecast period.
The adoption of 3D printing in the manufacturing industry can majorly impede the growth of the market. The adoption of 3D printing is increasing in manufacturing industries such as electronic components, automotive aftermarket parts, and workshop tools. With 3D printing, manufacturers can reduce logistics costs by 39% to 45%. In addition, spare parts manufacturers can produce products domestically without having a production base. This reduces the import and export of spare part components. Many automakers prefer 3D printing for spare parts. For example, General Motors introduced its 3D-printed seat bracket in 2018. It is 40% lighter and 20% stronger than traditional brackets. In the future, manufacturers will be able to sell spare part blueprints to their suppliers, who can directly manufacture and sell spare part components to desired end users. The adoption of 3D printing in manufacturing is therefore expected to reduce the need for capabilities. This may hinder the market growth during the forecast period.
With the help of 3D printing, spare parts manufacturers can achieve same-day production and delivery. Rather than manufacturing and stocking large numbers of replacement parts, parts manufacturers are moving to on-demand manufacturing to reduce packaging and inventory management costs. Maintaining an inventory of spare parts components that are ordered from time to time increases inventory costs for both manufacturers and suppliers. This is how spare parts manufacturers store digital configuration plans for their components. The company creates a 3D image of the part and sends it directly to the desired customer if needed. Adopting 3D printing for the production of spare parts not only saves manufacturers' inventory costs but also saves time and labor costs by eliminating operations such as manufacturing, storage, packaging, and transportation.
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.
CEVA Logistics AG: The company offers spare parts logistics solutions in the automotive market. Along with this it also offers air freight and ground transportation management services.
We also have detailed analyses of the market’s competitive landscape and offer information on 19 market Companies, including:
The market growth and forecasting report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the Companies. The analysis classifies Companies into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The automotive segment will contribute a major share of the market, as filters, brakes, suspension, and shock absorbers are the most important spare parts of passenger cars that need to be replaced frequently. The automotive segment showed a gradual increase in market share with USD 21.35 billion in 2017 and continued to grow by 2021. The automotive segment of the market is expected to witness significant growth during the forecast period. The main demand for this segment is expected to come from the passenger car sector.
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The number of passenger and commercial vehicles is steadily increasing. This can be attributed to increased sales of sport utility vehicles (SUVs) and commercial vehicles.APAC and Europe are major contributors to the hot market. Automakers are also ramping up production to take advantage of available market opportunities, especially in emerging markets. The increasing number of vehicles and the establishment of manufacturing facilities in developing countries are expected to boost the demand for automotive spare parts, which will boost the growth of the market during the forecast period.
The reverse logistics segment refers to the movement of goods or products between a seller and a recipient. Logistics providers manage the flow of these products between points of origin and point of consumption to meet the needs of customers and businesses. Products transported and stored in logistics include physical items such as materials, food, equipment, and liquids. Recall processing refers to the part of reverse logistics that requires a logistics plan for receiving products and then disposing of, repairing, or refunding the purchase price. Product recall cases drive the reverse logistics segment. The reverse logistics segment is one of the major drivers of the market. Logistics includes warehousing and transportation performed by reverse logistics providers for effective and efficient delivery. Also, increasing global trading activity, a rising number of trade-related contracts, and advancements in the transportation and information technology sectors are among the key factors responsible for market growth. Companies enter into strategic alliances and acquire other Companies to meet growing end-user demands. Therefore, the factors mentioned above are expected to support the growth of the reverse logistics segment and drive the growth of the market during the forecast period.
APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Electronics is one of the most important end-user segments in APAC. The region has seen an increase in hardware spending over the past five years. Hardware includes computers, field instruments, and other communication equipment. Japan and China are the biggest contributors to hardware spending in APAC, followed by India. Hardware spending in India is expected to grow at a significant rate during the forecast period. Increasing government initiatives like Digital India are key factors driving the hardware segment in India. Other APAC countries such as South Korea and Taiwan are also expected to contribute significantly to APAC hardware spending. Along with all this, various governments in APAC countries are investing in developing logistics infrastructure. Such developments in APAC countries will contribute to the growth of the market in APAC during the forecast period.
The Spare Parts Logistics Market in Asia Pacific is witnessing significant growth attributed to factors like commercial development and positive changes in economic scenarios. Market estimates suggest a rise in demand across various end application industries such as medical, telecoms, and utilities. This growth is influenced by factors like consumer buying behavior and the country's GDP. Companies like DHL, DB Schenker, and UPS dominate this sector, as indicated by their financial reports and annual reports. The competitive rivalry among key players is intense, driving pricing analysis and product pricing strategies.
Market evolution is evident through historical data and statistical databases, with a focus on long-distance transportation and data centers. Both qualitative and quantitative data from primary and secondary research, as well as subject matter expert advice, contribute to understanding market segments and trends. Threats such as buyer and supplier bargaining power, alongside the threat of new entry and substitution, shape strategic decisions outlined in investor presentations and SEC filings. Key players like Sinotrans, Panalphina, and SAIC AnJi Logistics navigate these dynamics while providing insights through their company profiles.
The market research and growth 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.
Spare Parts Logistics Market Scope |
|
Market Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.47% |
Market growth 2023-2027 |
USD 22.48 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.04 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
CEVA Logistics AG, DACHSER SE, Deutsche Bahn AG, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., GEODIS SA, Hitachi Transport System Ltd., Kerry Logistics Network Ltd., Kuehne Nagel Management AG, Lufthansa Cargo, Nippon Express Holdings Inc., Ryder System Inc, SEKO Logistics, SGLT Holding I LP, Toyota Motor Corp., TVS Supply Chain Solutions Ltd., United Parcel Service Inc., and XPO Logistics 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 forecast period |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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