The North America automotive logistics market plays a vital role in transporting vehicles efficiently and economically from component manufacturers and vehicle assembly plants to dealerships worldwide. This process involves inbound, in plant, and outbound logistics which include transportation of vehicle parts to production facilities, transportation of assembled vehicles to ports or local markets through various modes of transportation like roadways, railways, marine, and air freight. The automotive logistics providers help automakers reduce costs by pooling freight, delivering components on time, and synchronizing production schedules.
The global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the North America automotive logistics market is the adoption of blockchain technology. Blockchain provides real-time visibility and transparency during transportation of vehicles or components which helps automakers and logistics providers to track shipments and prevent delays. It securely records shipping details like location, condition of goods, and journey on an immutable distributed ledger. This enables efficient coordination between different parties involved and reduces logistics costs. Furthermore, blockchain smart contracts facilitate automatic payments between automakers and third-party logistics providers based on shipment delivery terms.
Threat of new entrants: The North American automotive logistics market has moderate threat of new entrants due to the high capital investment required.
Bargaining power of buyers: Automotive manufacturers have high bargaining power as buyers in this market due to the large volume of goods transported.
Bargaining power of suppliers: Logistics service providers have moderate bargaining power due to the availability of substitutes.
Threat of new substitutes: The threat from substitute products and services is low as automotive logistics services are specialized.
Competitive rivalry: The market is competitive with the presence of several international players.
The North America Automotive Logistics Market Size is expected to witness high growth over the forecast period. The global North America Automotive Logistics Market is estimated to be valued at US$ 86.07 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031.
The US dominates the regional market attributed to high automobile production and sales in the country. Canada and Mexico are other major country markets in the region. North America holds the major share in the global automotive logistics market owing to high demand for vehicles in the US. The US accounts for the largest share in the regional market due to presence of major automobile manufacturers and their strong distribution networks within the country. Canada and Mexico also contribute significantly to the growth of the automotive logistics market in North America.
Key players operating in the North American automotive logistics market include Diageo, William Grant & Sons, Castle Brand, Jameson Irish whiskey, and The Old Bushmills Distillery Co. Diageo is one of the largest players in the market owing to its international presence and product portfolio.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it