Introduction: Driving the Future of Automotive Supply Chains
The automotive logistics market plays a vital role in streamlining global automotive supply chains. From transporting finished vehicles to managing inventories of critical parts, this sector ensures timely delivery and efficient movement across vast geographic regions. The integration of modern technologies, rising e-commerce penetration, and an ever-expanding automotive industry are fueling its rapid expansion worldwide.
According to recent projections, the market is poised to grow from USD 194.47 billion in 2024 to USD 320.41 billion by 2034, reflecting a CAGR of 5.12% during the forecast period. The momentum is fueled by the rising demand for imported vehicles in emerging economies, AI-powered logistics innovations, and the accelerating push for sustainable logistics practices.
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Key Market Highlights
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Asia Pacific leads in revenue, driven by manufacturing powerhouses like China, Japan, and India.
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North America is catching up, forecasted to witness robust growth supported by advanced infrastructure and innovation.
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Transportation remains the dominant activity segment, while warehousing is the fastest-growing due to technological upgrades.
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Domestic logistics currently dominate, but international logistics are set to surge with rising cross-border trade.
What’s Powering the Automotive Logistics Boom?
Surge in Vehicle Imports Across Developing Economies
Countries such as India, Vietnam, and Thailand are seeing growing demand for premium and foreign vehicles. This has led to higher reliance on international logistics services to meet consumer expectations, pushing logistics providers to expand their networks and capabilities.
Online Auto Retailing Gains Traction
With car parts and even vehicles now being sold online, logistics providers are stepping up their game. From last-mile delivery to large-scale shipment of components, digital sales channels are pushing for faster, more efficient, and tech-integrated logistics services.
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Activity Breakdown: Transportation Leads, Warehousing Accelerates
Transportation Holds the Largest Market Share
The growing export of luxury vehicles from automotive hubs like Germany, France, and Italy has significantly raised the demand for premium, secure, and timely transport services.
Warehousing Gains Momentum
Fueled by increasing investments in automation, robotics, and AI, warehousing is transforming. Companies are setting up new-age warehouses that can handle large inventories, optimize space, and improve delivery times — especially for components and aftermarket parts.
Distribution Analysis: Domestic Leads, But International Rising Fast
Why Domestic Logistics Dominated in 2025
Automakers are ramping up intra-national delivery networks, creating hubs to move products across states and cities more efficiently. Services like interstate air freight are seeing increased adoption for time-sensitive automotive components.
International Segment Set to Outpace
With growing vehicle exports from countries like China, Germany, Italy, and the U.S., the international segment is expected to expand rapidly. Additionally, rising demand for imported auto components in remote or underserved regions will further boost cross-border logistics demand.
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Regional Insights: Asia Pacific at the Helm, North America Rising
Asia Pacific: Global Production Powerhouse
Home to auto giants like China (with over 31 million vehicles manufactured in 2024 alone), India, and South Korea, the region continues to dominate the logistics landscape. Strong digital adoption, the rise of auto e-commerce, and a dense network of regional players such as Nippon Express, Kerry Logistics, and Kintetsu World Express further amplify its dominance.
North America: Poised for Growth
With a sharp increase in supercar sales and growing demand for online auto parts, the North American market is witnessing a rapid transformation. Supportive government policies to bolster marine logistics and a growing focus on green, sustainable logistics are driving regional momentum.
Companies like Ryder System, Expeditors International, and Penske Automotive Group are actively investing in regional and cross-border logistics between the U.S. and Mexico, further strengthening North America’s automotive logistics infrastructure.
Technological Advancements: AI and Automation Lead the Way
The logistics sector is undergoing a digital renaissance. According to Vaibhav Vohra, Chief Product and Technology Officer at Epicor, success in leveraging AI in logistics lies in using high-quality industry-specific data and workflow-centered AI applications. Companies are moving beyond generic ERP systems and embracing tailored, AI-powered logistics platforms that offer real-time insights and operational agility.
Recent Strategic Moves in the Market
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Volkswagen Group Logistics launched a new terminal in Venice Port (June 2025) to improve export efficiency between Europe and Asia.
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duPont REGISTRY Group introduced premium car logistics services across the U.S. in May 2025.
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Nippon Express inaugurated a new warehouse in Andhra Pradesh, India (Feb 2025) to enhance regional automotive component storage.
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BLG expanded logistics operations in Turkey in Sept 2024 to facilitate auto imports from Europe and Asia.
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Militzer & Münch entered a joint venture with Uwe Moser in Germany to strengthen its automotive logistics portfolio.
Conclusion: Accelerating into a Digital, Global Future
The global automotive logistics market is on the cusp of a dynamic transformation. With increasing investments, growing international trade, the rise of AI, and a stronger push toward automation and sustainability, the industry is set to witness steady and impactful growth.
As key regions continue to modernize infrastructure and embrace green and digital logistics, the next decade promises abundant opportunities for both legacy players and new entrants. For market participants, adaptability, technology adoption, and global collaboration will be the keys to long-term success.
Source : https://www.towardsautomotive.com/insights/automotive-logistics-market-sizing