Logistics

"The Automotive Logistics market has transformed into a technology-driven backbone of global supply chains, ensuring speed, precision, and resilience for manufacturers and distributors. Valued as a high-growth sub-sector of Automotive & Transportation, it is projected to expand at a robust CAGR of 7.5% (2024–2032), powered by digital transformation, EV adoption, and expanding cross-border trade.

Regional Insights:

-Asia-Pacific leads with strong demand from China, India, and Japan’s manufacturing hubs.

-North America is the fastest-growing, driven by digital logistics, EV supply chain development, and large-scale infrastructure upgrades.

-Europe emphasizes sustainability, underpinned by the EU’s Green Logistics Initiatives.

-Product & Innovation Trends:

-AI-powered route optimization for faster, cost-efficient deliveries.

-Blockchain-enabled visibility for transparent and secure supply chains.

-IoT-driven real-time tracking and warehouse automation to reduce downtime.

-Cold-chain and express delivery systems ensuring reliability for EV batteries and critical parts.

Pricing & Policy Landscape:

Freight rates depend on weight, distance, urgency, and value-added services, with sustainability mandates pushing greener solutions. Policies such as India’s National Logistics Policy, the U.S. Infrastructure Investment and Jobs Act, and EU carbon reduction mandates are reshaping operations by cutting costs, lowering emissions, and enhancing connectivity.

Competitive Landscape:

Global majors DHL Supply Chain, Kuehne + Nagel, CEVA Logistics, and Ryder dominate through scale and advanced platforms, while regional players like Mahindra Logistics and Gati address localized and cost-sensitive markets.

Future Outlook

Automotive logistics is moving from a cost center to a value creation hub, integrating sustainability, digitalization, and smart mobility solutions. By enabling just-in-time manufacturing, EV distribution, and predictive supply chains, the sector is set to become a strategic enabler of global mobility and competitiveness."

Logistics Dominant Region
Asia-Pacific
Global Logistics Leader
DHL Supply Chain
Contribution to Indian GDP
14%

Explore the key insight

Contract Logistics
Advancements in supply chain technologies and growing demand for efficient automotive transportation are reshaping the global contract logistics market in automotive and transportation, which reached an estimated USD 454 billion in 2024 and is projected to grow at a CAGR of 7.5% through 2032. Rising adoption of multimodal transportation, automated warehousing, inventory management, reverse logistics, and value-added services is driving contract logistics market expansion. Asia-Pacific remains a pivotal hub, contributing approximately 34% of the market share in 2024, supported by rapid industrialization, expanding manufacturing clusters in China and India, and growing export operations. Current trends include AI-powered warehouse automation, IoT-enabled supply chain visibility, blockchain-based shipment tracking, and predictive logistics analytics, which are enhancing delivery speed, cost efficiency, and transparency. Trade regulations and government policies are significant in shaping the contract logistics industry dynamics. Initiatives such as India’s National Logistics Policy and the development of Multi-Modal Logistics Parks (MMLPs) under Bharatmala are improving infrastructure, reducing logistics costs from 13% to under 10% of GDP, and driving digital integration. Globally, import-export policies, customs compliance, and EV logistics regulations are enabling smoother cross-border operations. The outsourcing segment is witnessing substantial growth, expected to rise from USD 208 billion in 2024 to over USD 375 billion by 2032, driven by services such as automotive transportation, reverse logistics, aftermarket fulfillment, inventory management, and integrated 3PL solutions. Additionally, sustainable logistics initiatives, EV supply chain integration, and technology-driven solutions are creating new opportunities for providers. The competitive landscape is dominated by leading firms such as A.P. Moller Maersk, DB Schenker, CEVA Logistics, Kuehne + Nagel, and Ryder System, which are investing heavily in technology adoption, mergers and acquisitions, and expansion of EV supply chain capabilities. Emerging focus areas include AI-enabled logistics planning, smart warehousing, autonomous freight movement, cold-chain logistics, and blockchain-based tracking. The client base comprises automobile OEMs, EV startups, fleet operators, and aftermarket suppliers, with pricing models determined by shipment volume, transport mode, urgency, and value-added services.
Digital Spending
Rising digital spending market is redefining the landscape of automotive and transportation logistics, as companies increasingly invest in cloud-based logistics platforms, AI-driven route optimization, IoT-enabled fleet tracking, and warehouse automation. The global digital spending industry in logistics is projected to reach USD 93.28 billion by 2030, growing from USD 33.79 billion in 2024 at a CAGR of 18.8%. Enterprises are adopting Transportation Management Systems (TMS), Warehouse Management Systems (WMS), predictive analytics, and blockchain-enabled freight tracking to achieve real-time visibility, inventory accuracy, and operational efficiency. While North America leads adoption due to mature IT ecosystems and advanced digital freight programs, Asia-Pacific is rapidly catching up, driven by e-commerce expansion, government incentives, and digital-first supply chain policies. Government regulations and trade frameworks are key drivers of digital spending in logistics. Initiatives such as India’s National Logistics Policy, Multi-Modal Logistics Parks, and automated customs clearance are accelerating technology adoption. Companies are navigating cross-border trade policies, import-export compliance, tariffs, and sanctions through investments in AI-enabled supply chain optimization, cloud TMS/WMS solutions, and automated warehouse operations. Asia-Pacific is emerging as the fastest-growing market for digital logistics investment, whereas North America and Europe emphasize sustainable supply chain technology, predictive maintenance, and last-mile delivery optimization. The digital spending market in automotive and transportation logistics is highly competitive. Key players such as IBM, SAP, Oracle, Hexaware, JDA Software, Honeywell, Advantech, and XPO Logistics are driving innovation with IoT-enabled tracking, AI-powered logistics platforms, predictive analytics, and smart warehouse automation. Strategic partnerships between 3PL providers and technology firms are facilitating the adoption of scalable, secure, and real-time logistics solutions. Investment trends highlight EV supply chain logistics, automated fulfillment systems, and enhanced supply chain resilience, enabling companies to support just-in-time manufacturing, e-commerce delivery, and global trade flows.
Ocean Freight
The Ocean Freight market is witnessing rapid digital transformation as companies ramp up digital spending in maritime logistics to enhance global shipping operations. Technologies such as cloud-based logistics platforms, AI-driven route optimization, IoT-enabled vessel tracking, blockchain-based documentation, and smart port automation are driving efficiency, transparency, and supply chain resilience. North America currently leads adoption due to its advanced IT infrastructure, strong trade volumes, and mature shipping networks, while Asia-Pacific is the fastest-growing region, fueled by e-commerce exports, government-backed port digitization, and smart trade corridor initiatives. Industry forecasts indicate that FCL/LCL container tracking, predictive vessel maintenance, and real-time cargo visibility platforms will continue to accelerate Ocean Freight market growth. Trade regulations and government initiatives are shaping the Ocean Freight industry. Programs such as India’s Sagarmala Project, U.S. digital trade lane programs, and EU green shipping initiatives are boosting port efficiency, environmental compliance, and automated customs clearance. Companies are adapting to cross-border trade policies, import-export compliance, and tariff regulations by investing in digital freight forwarding platforms, predictive analytics in shipping, and AI-enabled TMS/WMS solutions. Asia-Pacific’s rapid expansion is supported by digital port modernization, cold-chain logistics adoption, and scalable ocean freight platforms. Pricing models for digital solutions vary based on deployment type (cloud vs. on-premise), shipment volume, container type (FCL/LCL), integration with express cargo, and automation level. Key players in the Ocean Freight market include IBM, SAP, Oracle, Maersk, CMA CGM, DHL Global Forwarding, and Kuehne + Nagel, focusing on IoT-enabled fleet tracking, AI-powered logistics platforms, predictive analytics, blockchain documentation, and smart port automation. Strategic partnerships between shipping lines, port authorities, and technology providers are facilitating scalable, secure, and real-time logistics solutions. Investment trends highlight EV supply chain logistics, automated container handling, last-mile delivery optimization, predictive vessel maintenance, and supply chain resilience, catering to global shippers, OEMs, 3PL providers, and freight forwarders.

Industry definition

Logistics Products in the Automotive & Transportation industry are the backbone of modern mobility supply chains, ensuring seamless movement, storage, and distribution of vehicles, raw materials, and spare parts worldwide. Core offerings include multi-modal transportation services (road, rail, sea, air freight), warehousing & inventory systems, cold-chain solutions, reverse logistics, and aftermarket parts delivery.

The industry is undergoing a technology-driven transformation, where AI-powered route optimization, IoT-enabled real-time tracking, blockchain-based visibility, and automated warehouses are reshaping efficiency, reliability, and cost savings. These innovations enable just-in-time manufacturing, EV distribution networks, and end-to-end trade integration, reducing downtime while maximizing flexibility.

By merging precision engineering with digital intelligence, logistics products have evolved from simple transport functions into strategic enablers of competitiveness, driving sustainability, scalability, and resilience across the global automotive ecosystem.

Automotive and Transportation