The Europe automotive logistics market accounted for US$ 43.25 Bn in 2018 and is expected to grow at a CAGR of 6.9% over the forecast period 2019-2027, to account for US$ 80.58 Bn in 2027. The significant number of partnerships among automobile manufacturers & logistics partners and increased focus on expanding the number of automobile manufacturing units across the globe are the key drivers boosting the automotive logistics market growth. Moreover, the European automobile manufacturers create ample opportunities for automotive logistics providers, which in turn is anticipated to boost the market growth in the near future. However, the Increasing Complexities in the Supply Chain Business is expected to hinder the growth of automotive logistics market. Any supply chain in the market is always influenced by various external factors, including fluctuations in fuel costs, supplier/buyer relationships, consumer behavior, and partner ecosystem. Designing and planning supply chains for their customers involves consistent coordination with other tasks such as warehousing, transporting, designing facilities, order collections, goods distribution, managing orders, and also certain facets of customer service. Additionally, harmonic relations between each of the trading partner is vital for smooth operations overall. Even with the potential business benefits offered by the automotive logistics companies for supply chain management, the contract based process comes under consistent scrutiny for the reason of being outsourced and dependence on the third party for business. Security of sensitive & confidential data is one of the primary reasons for the slow acceptance of the technology in the automotive industry, which is restraining the growth of automotive logistics market. The automotive logistics market is fragmented in nature due to the presence of several industries, and the competitive dynamics in the market is anticipated to change during the coming years.In addition to this, various initiatives are undertaken by governmental bodies to accelerate the automotive logistics market further.
The automotive industry plays a significant role in the growth of Europe’s prosperity, as it accounts for a significant portion in the region’s GDP as well as provides jobs to a large number of population.Due to these factors, the European Commission has taken several initiatives for the development of the automotive industry in the region.
For example, CARS 2020 Action Plan, GEAR 2030, etc. Also, Horizon 2020 by EU focuses on providing funds for R&D on automotive by launching programs such as European Green Vehicles Initiative and programs on ‘Road Transport,’ ‘ICT for Smart Mobility’, ‘Factories of the Future’ and ‘Logistics.’ Based on the service segment, the transportation segment of the automotive logistics market is leading the market with the highest market share in Europe.The logistics players provisioning transportation management services own core competencies in freight forwarding and also offer additional value-added services.
It acts as an intermediary that arrange for domestic and international transportation amongst their customer and transportation provider.It manages all the transportation of materials and products from the point of origin to destination with the road, rail, ocean, or airways.
Thus, transportation is an integral part of the logistics operations and a significant contributor to logistic expenses. Moreover, the technological advancement in the system allows delivering superior services to the clients irrespective of international or domestic. The overall automotive logistics market size has been derived using both primary and secondary source.The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the automotive logistics market.
It also provides an overview and forecast for the automotive logistics market based on all the segmentation provided with respect to the Europe region.Also, primary interviews were conducted with industry participants and commentators to validate data and analysis.
The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive logistics market. Some of the players present in automotive logistics market are CEVA Logistics AG, DB Schenker (Deutsche Bahn AG), DHL International GmbH (Deutsche Post AG), DSV A/S, GEODIS, KUEHNE + NAGEL International AG, Nippon Express Co., Ltd., Ryder System, Inc., XPO Logistics, Inc., and United Parcel Service, Inc. Group among others.
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