June 18, 2024
North America Automotive Logistics Market

North America Automotive Logistics Market Is Optimal For Supply Chain Integration By 2030

The North America automotive logistics market comprises logistical services that enable smooth transportation of vehicles and automotive components from manufacturers to various dealerships and customers. Some key logistics services offered are transportation & warehousing, packaging & repackaging, reverse logistics, and more. Efficient automotive logistics help optimize supply chain costs and fulfill delivery commitments.

The Global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Billion  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 players are focusing on expanding their logistics infrastructure and fleet capacity to cater to the increasing vehicle production in the region.

The growing demand for vehicles across American and Canadian markets has necessitated efficient logistical support for automakers and their tier 1 suppliers. Logistics providers are witnessing significant order volumes from automotive companies trying to minimize supply chain disruptions.

The automotive logistics market in North America is also witnessing increased mergers and acquisitions as large logistics firms acquire regional players to strengthen their presence across the US and Canada. Market leaders are making investments to setup logistical hubs and cross-docking facilities in strategic locations for seamless movement of vehicles and parts.

Market Key Trends

Supply chain integration between automakers and logistics providers is a key trend being witnessed in the North America automotive logistics market. Automotive companies are collaborating with leading logistics players to develop integrated supply chain solutions that optimize the movement of raw materials and auto components right from suppliers to vehicle manufacturing facilities and dealerships. This helps achieve operational efficiencies, faster turnarounds, and reduced logistics costs.

Porter’s Analysis

Threat of new entrants: The automotive logistics market in North America requires high investments which acts as a barrier for new companies. Bargaining power of buyers: Large automotive companies have high bargaining power over logistics service providers due to their demand volume. Bargaining power of suppliers: Fewer logistic service providers exist leading to less supplier bargaining power. Threat of new substitutes: No direct substitute exists for automotive logistics services. Competitive rivalry: Intense competition exists among existing players to gain market share.

Geographical Regions
The United States holds the major share of the North America Automotive Logistics Market Size in terms of value owing to the large scale vehicle production and sales in the country.

The Mexican automotive logistics market is expected to witness the fastest growth during the forecast period due to rising exports of automotive parts and vehicles from Mexico to other parts of the world especially the United States.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it