The North America automotive logistics market is expected to grow from US$ 48,567.79 million in 2021 to US$ 71,282.17 million by 2028; it is estimated to grow at a CAGR of 5.6% from 2021 to 2028.
The North America automotive logistics market is experiencing significant market growth momentum, primarily fueled by robust demand for both passenger and commercial vehicles across the region. This surge in vehicle consumption is fundamentally linked to two major, interconnected factors. Firstly, a sustained rise in disposable income among consumers and businesses has increased purchasing power, enabling greater investment in personal transportation and commercial fleets essential for economic activity. This economic uplift translates directly into higher sales volumes for automakers.
Secondly, the North America automotive logistics market is bolstered by strategic expansions and relocations within the automotive manufacturing landscape. There has been a notable increase in the establishment of new manufacturing plants and assembly units, not only within developed North American nations but also leveraging opportunities in developing economies globally. This geographical diversification and scaling of production capacity inherently generate complex and voluminous logistics requirements. The movement of raw materials, components (including critical semiconductors), sub-assemblies, and finished vehicles across vast distances and international borders necessitates sophisticated and efficient logistics solutions.
Recognizing these growth drivers and the competitive landscape, vendors operating within the North American automotive logistics sector are proactively innovating. To differentiate themselves and capture greater market share, they are continuously enhancing their service offerings. This involves integrating advanced features and cutting-edge technologies such as sophisticated telematics for real-time tracking, AI-driven route optimization, warehouse automation, predictive analytics for inventory management, and blockchain for enhanced supply chain transparency and security. By providing these value-added services, logistics providers aim to attract new clientele, particularly cost-conscious and efficiency-focused automakers and suppliers.
Furthermore, these technological and service advancements are key enablers for logistics vendors seeking to expand their operational footprints beyond established markets into emerging regions experiencing their own automotive manufacturing booms. The ability to offer reliable, tech-enabled, and scalable logistics support is crucial for success in these developing markets. Consequently, the confluence of rising vehicle demand driven by economic factors, expanding manufacturing bases generating substantial logistics needs, and the proactive innovation by logistics providers to meet evolving requirements is expected to propel the North America automotive logistics market forward at a healthy Compound Annual Growth Rate (CAGR) throughout the forecast period. This growth trajectory underscores the sector's critical role in supporting the broader automotive industry's ecosystem.
North America Automotive Logistics Market Segmentation:
The market is segmented as follows:
By Type: North America automotive logistics market
- Outsourcing
- Insourcing (dominated the market in 2021)
By Service: North America automotive logistics market
- Transportation (dominated the market in 2021)
- Warehousing
- Packaging processes
- Integrated service
- Reverse logistics
By Sector: North America automotive logistics market
- Passenger vehicle
- Commercial vehicle
- Tire
- Component (dominated the market in 2021)
By Country: North America automotive logistics market
- US (dominated the market in 2021)
- Canada
- Mexico
Leading Companies in the North America Automotive Logistics Market:
- CEVA LOGISTICS AG
- DB Schenker
- DHL International GmbH
- DSV A/S
- GEODIS
- Kuehne + Nagel International AG
- Nippon Express Co., Ltd.
- RYDER SYSTEM, INC.
- XPO Logistics, Inc.
- United Parcel Service of America, Inc. (by Altair)
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Author’s Bio:
Suryakant Gadekar
Senior Market Research Expert at Business Market Insights
