Global Automotive Logistics Market Grows Steadily at a CAGR of 7.88%

Introduction

Automotive logistics refers to the planning, management, and execution of the efficient flow of automotive components, parts, and finished vehicles across the supply chain. It encompasses inbound logistics (transporting raw materials and parts to manufacturing plants), in-plant logistics (internal handling and storage), and outbound logistics (delivery of finished vehicles to dealers or customers). This process involves multiple modes of transportation, warehousing, inventory management, and real-time tracking systems. Automotive logistics ensures timely production, minimizes costs, and enhances customer satisfaction in a highly competitive and globalized automotive industry.

Market Dynamics

Rapid globalization of automobile manufacturing and assembly operations drives the global market

One of the major factors propelling the growth of the global automotive logistics market is the increasing globalization of vehicle manufacturing and assembly processes. Automakers are strategically establishing production plants closer to key consumer markets to lower transportation expenses, shorten delivery times, and enhance overall supply chain performance. This trend is largely influenced by the growing demand in developing regions and the need to diversify manufacturing locations.

• For example, Tesla’s upcoming Gigafactory in Monterrey, Mexico—announced in 2023 and expected to be operational by 2026—is designed to efficiently serve both North and South American markets. Likewise, Chinese electric vehicle manufacturer BYD has begun constructing a $1 billion manufacturing facility in Indonesia, with production expected to start by the end of 2025.

These strategic expansions are driving the need for advanced logistics solutions and robust regional distribution systems.

Growth in demand for EV and battery logistics solutions creates tremendous opportunities

The growing adoption of electric vehicles (EVs) is driving a surge in demand for specialized automotive logistics, especially for the handling, storage, and transportation of EV batteries. These batteries present unique logistical challenges due to their substantial weight, chemical makeup, and safety considerations. As EV usage expands worldwide, the need for secure and efficient logistics infrastructure is becoming increasingly essential.

• A significant development in this space is the UK’s plan to invest £1 billion in a new gigafactory in Sunderland, announced for May 2025. Spearheaded by Japanese battery producer AESC, the facility is expected to manufacture batteries for up to 100,000 EVs each year—representing a sixfold boost in the UK’s current production capacity. This ambitious project highlights the pressing demand for advanced battery logistics to support large-scale EV manufacturing.

Such developments offer promising growth opportunities for logistics companies to broaden their EV-focused service offerings.

Regional Analysis

The Asia-Pacific region plays a pivotal role in the Global Automotive Logistics Market, driven by the robust automotive manufacturing and growing demand for vehicles. China, the largest automobile producer and exporter globally, is a prime example, with major logistics hubs like the Port of Shanghai facilitating the movement of vehicles and parts across international markets. India’s automotive sector is expanding rapidly, with logistics infrastructure such as the Delhi-Mumbai Industrial Corridor improving the transportation of both domestic and exported vehicles.

Moreover, Japan’s shift toward electric vehicle (EV) production necessitates specialized logistics for batteries and related components, driving innovation in transport solutions. Countries like South Korea are adopting digital technologies like IoT and AI in logistics, enhancing real-time tracking and operational efficiency. As Asia-Pacific continues to lead in vehicle production and trade, it remains crucial for the growth of global automotive logistics, requiring further advancements in transportation modes like rail and maritime networks.

Key Highlights

• The global automotive logistics market size was valued at USD 297.01 billion in 2024 and is estimated to grow from USD 320.41 billion in 2025 to reach USD 587.81 billion by 2033, growing at a CAGR of 7.88% during the forecast period (2025–2033).
• By type, the automotive logistics market includes automobile parts and finished vehicles.The automobile parts segment dominated the market.
• By activity, the market includes transportation and warehousing. The transportation segment held the largest market share.
• By logistics solution, the market is segmented into outbound, inbound, and reverse distribution (international and domestic). The inbound segment held a dominant market share.
• By distribution, the segments are international and domestic. The domestic segment dominated the market.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. DHL Group
2. Kuehne + Nagel
3. XPO Logistics
4. DB Schenker
5. Geodis
6. CEVA Logistics
7. Nippon Express
8. Penske Logistics
9. Ryder System
10. Expeditors International of Washington, Inc.

Recent Developments

• In April 2025 – French shipping giant CMA CGM, via its subsidiary CEVA Corporate Services, is acquiring the logistics arm of Turkish conglomerate Borusan in a $440 million deal. This move strengthens CMA CGM's presence in Turkey and boosts its expertise in automotive logistics.

Segmentation

1. By Type
   1. Automobile Parts
   2. Finished Vehicle
2. By Activity
   1. Transportation
   2. Airways
   3. Roadways
   4. Railways
   5. Maritime
   6. Warehousing
3. By Logistics Solution
   1. Outbound
   2. Inbound
   3. Reverse Distribution (International and Domestic)
4. By Distribution
   1. International
   2. Domestic
5. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa