Automotive 3PL Market: Current Analysis and Forecast (2024-2032)
Emphasis on Type (Finished Vehicles and Auto Components); Service (Transportation, Warehousing, Distribution, Inventory Management, and Others); and Region/Country
Automotive 3PL Market Size & Forecast
The automotive 3PL market was valued at approximately USD 239.80 billion in 2023 and is expected to grow at a strong CAGR of around 8.38% during the forecast period (2024-2032) owing to increased complexity in the automotive supply chain, the rise of electric vehicles, greater outsourcing of logistic operations by manufacturers, and growing emphasis on sustainability and green logistics.
Automotive 3PL Market Analysis
The Automotive 3PL Market is expected to grow at a steady growth rate owing to the expanding automotive supply chain issues and the requirement for Automotive 3PL. For example, in 2024, DHL Supply Chain, one of the largest service providers globally is increasing capacities with a new plant in Leipzig/Halle. The new, 34,000-square-meter complex will increase the existing capacities of the company. The DHL Supply Chain provides services to a wide range of clients within the industrial and services sectors and can enjoy the excellent transport linkages of the area for both national and global distribution. Further, the increase in the adoption of electric vehicles and the Globally Adopted Just in Time (JIT) inventory management manufacturing approach are key drivers that are compelling automotive manufacturers to seek the services of third-party logistics providers which include inventory management, warehousing, and transportation services for automotive products hence driving the Automotive 3PL market.
Recent Developments in the Market:
In April 2024, Kuehne+Nagel expanded its spare parts logistics for BMW. The company is one of the leading logistic providers and now manages a 170,000m² spare parts fulfillment and delivery center in Wallersdorf, Germany.
In October 2024, CEVA Logistics acquired a joint venture company from Bolloré Logistics and Horoz Logistics named Horoz Bolloré Logistics founded back in 2000. The full acquisition of Horoz Bolloré Logistics as CEVA has the potential to further strengthen the range of services we provide in Turkey that will help enhance our international logistics product portfolio.
In October 2024, CEVA Logistics, a global third-party logistics company, and Almajdouie Logistics, one of the most prominent end-to-end logistics solution providers in the Middle East region agreed to form a joint venture in the Kingdom of Saudi Arabia (KSA).
Automotive 3PL Market Trends
Adoption of Advanced Technologies
Emerging Technologies are paving the way in the automotive 3PL market due to the ever-increasing demand for effectiveness, prompt and clear logistics together with flexibility in managing highly intricate supply networks. Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain technologies are rising to paramount importance in the logistics industry, helping logistics decision-makers deliver better logistics services. AI finds its prime application in the areas of route optimization, demand forecasting, and inventory management. For instance, by employing Artificial Intelligence, large chunks of data can be reviewed to assess when transportation may be slowed down, and to advise better ways of conveyance. It also supports predictive operations by evaluating the state of vehicles and equipment thus making it easier for 3PL providers to reduce losses due to downtime as well as enhance the usage of their fleets. DHL and XPO logistics firms have integrated the use of artificial intelligence in demand forecasting, which assists their automotive customers in cutting down on logistics expenses. For instance, in 2022, DHL Supply Chain has introduced an on-demand packaging solution that aims to provide its commercial customers with a range of packaging options that are cheaper and more sustainable than traditional packing options. The OptiCarton carries options such as filling boxes from a predetermined set of cartons with the assistance of an AI; the capacity to propose breaking an order into several consignments to make single shipments cheaper or require lesser CO2 emissions.
Asia-Pacific is expected to dominate the market during the forecast period
The Asia Pacific region held the majority share of the market in the year 2023 due to various factors such as the region being the emerging manufacturing hub. Factors such as the presence of the largest manufacturing companies due to cheap labor costs, and growing innovation parallelly supported the market growth. Countries such as China, India, Indonesia, and South Korea produce a wide range of vehicle components driving demand for 3PL services. Government support such as India’s PLI Scheme for automobiles and auto components which comes under the Department of Heavy Industries has boosted the production and consequently, 3PL demand. Japan is one of the most technologically advanced countries in terms of the automotive industry with the presence number of global automotive players such as Honda, Toyota, Nissan, and others. Toyota’s hydrogen fuel cell electric vehicle “Mirai” has created new opportunities and challenges for the 3PL providers. This will allow service providers to come up with unique solutions to further facilitate market growth. Moreover, according to the report published by JAMA (Japan Automobile Manufacturers Association, Inc.), with an increase in manufacturing, the country’s automotive shipments reached 63 trillion Yen in 2022, up 11.4% from the previous year. Moreover, the country has increased its exports to 4,422,682 units in 2023. Motor vehicle exports increased in 2023 from the previous year to North America (1.72 million units), Europe (775,100 units), the Middle East (490,000 units), Oceania (469,000 units), and Latin America (277,000 units), but decreased to Asia (575,000 units) and Africa (107,000 units). This has further boosted the demand for 3PL services.
Automotive 3PL Industry Overview
The automotive 3PL market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, geographical expansions, and mergers and acquisitions. Some of the major players operating in the market are DHL Supply Chain, Kuehne+Nagel, DB SCHENKER, XPO, Inc., C.H. Robinson Worldwide, Inc., CEVA Logistics, United Parcel Service of America, Inc., Ryder System, Inc., Penske, and NIPPON EXPRESS HOLDINGS.
- In July 2024, The DHL Supply Chain penetrated the United States retail out zone with new additional stock in Troy Michigan. The new facility also provides touch-screen kiosks for staff-assisted and automated self-service besides other services and DHL branded products such as Bubble packing material, packing tapes, and branded moving boxes among others that will make and create the right customer retail sensation.
Automotive 3PL Market Report Coverage
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global automotive 3PL market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Automotive 3PL Market Analysis (2024-2032)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global automotive 3PL market were the three major steps undertaken to create and analyze the adoption of automotive 3PL in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global automotive 3PL market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the automotive 3PL market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the automotive 3PL market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, such as type, service, and region. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the automotive 3PL market. Further, we conducted factor analysis using dependent and independent variables such as type, service, and regions of the automotive 3PL market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the automotive 3PL market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global automotive 3PL market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the automotive 3PL market across the major markets domestically.
- All percentage shares, splits, and breakdowns of market segments and sub-segments.
- Key players in the global automotive 3PL market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global automotive 3PL market. Data was split into several segments and sub-segments after studying various parameters and trends in the areas of type, service, and regions in the global automotive 3PL market.
The main objective of the Global Automotive 3PL Market Study
The current & future market trends of the global automotive 3PL market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the automotive 3PL market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
- Segments in the study include areas of the type, service, and regions.
- Define and analyze the regulatory framework for the automotive 3PL
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the automotive 3PL market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World
- Company profiles of the automotive 3PL market and the growth strategies adopted by the market players to sustain in the fast-growing market.
- Deep dive regional level analysis of the industry.
Frequently Asked Questions FAQs
Q1: What is the automotive 3PL market's current market size and growth potential?
Q2: What are the driving factors for the growth of the automotive 3PL market?
Q3: Which segment has the largest share of the automotive 3PL market by type?
Q4: What are the emerging technologies and trends in the automotive 3PL market?
Q5: Which region will dominate the automotive 3PL market?
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