The North America automotive Logistics Market is estimated to grow at a CAGR of approximately 4% during the forecast period.
It’s the start of a new decade and with it a new era in North American vehicle logistics. Rarely has the industry stood on the cusp of so much change and opportunity. And yet, like the wider automotive industry, rarely has the vehicle logistics sector faced so much uncertainty in economic and trade headwinds, new regulations, consumer behavior, and returns on investment.
To succeed, the vehicle logistics sector needs to move faster, with greater visibility, and more flexibly than ever before. OEMs, logistics, and technology providers will also need to work together more closely than ever to share data, planning, and technology to keep the supply chain flowing efficiently.
The future of automotive supply chains is of importance to both logistics service providers to the automotive sector and, at the macro level, whole economies. Any change in the structure of the automotive supply chain has the power to affect the nature of world trade and the dynamics of numerous national economies.
The rising number of automobile manufacturing plants across the globe is boosting the automotive logistics market growth. Moreover, the automobile manufacturers pose significant business opportunities for automotive logistics providers, which in turn is anticipated to increase the market growth in the near future. Developing economies witnessed a steady growth in the post-recession era, and thus, there was a rise in the disposable incomes of consumers.
Key Market Trends
Demand from Light Vehicle Production
North American light-duty vehicle production is driven by the United States, which accounts for 67.5% of the total North American light-duty vehicle production in terms of volume. Stringent emission regulations leading to light-weighting/engine downsizing has also fueled the growth of light-duty vehicles in the region. The increasing demand for light-duty vehicles in North America, stringent emission regulations leading to light-weighting/engine downsizing, and infrastructure growth has led to an increase in passenger car production in North America.
The North American passenger car market is favorable for gasoline vehicles, but it has started moving towards diesel and hybrid vehicles. The U.S. government is taking steps to promote electric vehicles (EVs), and plans to introduce 48 electric charging corridors which will cover 25,000 miles of highways.
EV boost in United States
The United States market almost doubled to 360,000 EV units, mainly because of the strong sales performance of Tesla’s Model 3. Tesla sold 140,000 Model 3 cars in 2018, making it the best-selling EV in the United States (40 percent market share) and globally (7 percent). For the first time in the country, an EV model sold equally as well as comparable internal-combustion-engine (ICE) cars. While high sales numbers for the Model 3 in 2018 were partially supported by EV tax credits and high demand from the list of reservation holders, they still show that EVs can be attractive alternatives to gasoline-powered cars and that a strong market potential exists for a growing number of premium and mass-premium buyers. Nevertheless, sustainable market growth will also depend on regulatory developments, given ongoing discussions among federal and national parties regarding the rollback of 2025 fuel-economy standards as well as state authority under the Clean Air Act.
Competitive Landscape
The North America Automotive Logistics Market is Fragmented, the market is expected to grow during the forecast period due to the growing demand for electric vehicles, an increase in the demand for lightweight vehicles, and many other factors are driving the market. International players are dominated in the market.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
Methodology
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