The automotive logistics market will increase from $284.1 billion in 2018 to $472.9 billion by 2025 as a result of growing vehicle production, which increases the demand for raw materials and components, according to a new study.
The report highlights the fact that the automotive logistics market is dominated by a few globally established players such as DHL, XPO, SNCF, Kuehne + Nagel, and DSV.
High initial investment and operational expenses such as labour cost and process automation cost can hinder the growth of the automotive logistics market, it says. The increase in labour cost is one of the major concerns for developed economies. This can restrict the growth of the automotive logistics market. Shortage of skilled drivers is another key challenge for logistics service providers. Logistics service providers such as DHL plan to deploy autonomous trucks to counter the problem of the driver shortage. Autonomous trucks would help increase efficiency and reduce operating costs for logistics companies.
The report entitled: “Automotive Logistics Market by Activity (Warehouse, Transport), Logistics Service (Inbound, Outbound, Reverse, Aftermarket), Mode of transport (Roadways, Railways, Maritime, Airways), Distribution, and Region – Global Forecast to 2025”, from ResearchAndMarkets.