The robust expansion of the automotive industry serves as a primary driver for the global Finished Vehicles Logistics Market Size. With escalating automobile sales, particularly in countries like Brazil, the surge in population fuels the demand for convenient transportation, propelling market growth. Key automotive production hubs include China, the US, Japan, Germany, and India.
Expected to surge at a 5.03% CAGR, the Finished Vehicles Logistics Market 2023-2027 is set to expand by around USD 24.15 billion. This growth stems from factors like a thriving automotive industry, global proliferation of car manufacturing, and expanding intermodal freight transport.
Is logistics in demand?
The demand intensifies for efficient finished vehicle logistics, encompassing transportation and warehousing from production plants to dealership floors. This surge marks a focal point for market growth, anticipated throughout the forecast period. Hence, the burgeoning automotive sector is poised to power the global finished vehicles logistics (FVL) market in the coming years.
The rising prominence of electric vehicles emerges as a catalyst propelling the global finished vehicle logistics market. With a pronounced emphasis on fuel efficiency and operational cost reduction, the advent of electric vehicles—hybrids and fully electric models—has taken center stage. These vehicles are positioned as cost-effective alternatives to traditional internal combustion engine (ICE) vehicles while significantly reducing pollution levels.
In addition, electric vehicles contribute to a substantial decrease (by approximately 50%) in greenhouse gas emissions compared to ICE vehicles. Given these advantages, consumers are increasingly drawn toward electric vehicles, steering the market shift. For instance, Nissan Motor Co. Ltd. commenced exporting its Leaf EV to Australia and South America from its Sunderland, UK plant in July 2019. This uptick in EV production and export is projected to escalate the demand for streamlined finished vehicle logistics in the foreseeable future.
Snapshot of Finished Vehicles Logistics Market
Several finished vehicle logistics providers play a pivotal role in this landscape, including ACERTUS, AP Moller Maersk AS, ARS Altmann AG, BERGE INFRASTRUCTURES Y SERVICIOS LOGISTICOS SL, CargoTel Inc., CMA CGM SA Group, Deutsche Post AG, DP World, DSV AS, Ekol Lojistik AS, Hellmann Worldwide Logistics SE and Co KG, Koopman Logistics Group BV, Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., and Omsan Lojistik AS. These entities contribute significantly to shaping the dynamic finished vehicle logistics market.
In today's landscape, the Finished Vehicles Logistics Market thrives on the surge in automotive sales and the global demand for streamlined transportation solutions followed by a growing need for efficient logistics from production to dealership and the emergence of electric vehicles as a pivotal driver.
Intrigued for more? Discover intricate market dynamics and essential insights from our comprehensive investigation such as segment analysis, fastest-growing topography, or be it the logistics risks involved in the Finished Vehicles Logistics Market.