Market Research Report
Asia-Pacific Automotive Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)
|Published by||Mordor Intelligence Pvt Ltd||Product code||965301|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|Asia-Pacific Automotive Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)|
|Published: August 1, 2020||Content info: 120 Pages||
The Asia Pacific Automotive Logistics Market is estimated to grow at a CAGR of approximately 5% during the forecast period.
As per the industry analysis, the Asia-pacific region is estimated to hold the major market share in the global market studied. This is primarily because of the presence of the emerging economies, like China and India. Numerous factors, like the easy availability of raw materials, increased demand for vehicles in the region, rising population, and availability of low wage workers, are anticipated to drive the automotive logistics market in the region.
Asia Pacific is home to some of the major automotive OEM companies, like Toyota, Maruti Suzuki, Hyundai, and SAIC Motor Corporation Limited, among others. With the increasing production and trading activities, there is a demand for the logistics companies to manage the procurement, transport, and storage activities of the OEMs to optimize the latter's supply chain more efficiently.
The global logistics companies are increasingly entering the Asia pacific region, to tap the growth associated with the market. For instance, in June 2019, French logistics provider, GEFCO, has set up a dedicated subsidiary in Chongqing (China) for specializing in importing and exporting vehicles by rail between Europe, Russia, and China.
Ever-shifting international trade policies, evolving safety, and environmental regulations, escalating demand for electronic and autonomous vehicles, changing societal attitudes toward automobiles, global politics, and even cybersecurity issues-all play significant roles in the great auto supply chain.
Various initiatives are undertaken by governmental bodies to accelerate the automotive logistics market further. For instance, in Asia-Pacific, relevant regulations and initiatives to improve professional standards by industry & government play an important role in logistics operations. The range of logistics services is subject to logistic industry regulations and policies. Moreover, the expansion of such services is also driven by government policies. For instance, the Framework Act on Logistics Policies in Korea provides benefits to companies delivering integrated services of warehousing, transport, and value-added services. The companies entering in the automotive logistics market have to comply with multiple entry requirements depending on the type of plan they offer.
Demand for Electric Vehicles are increasing in the region:
The growing awareness of vehicle emissions, such as CO2, lower operating and maintenance costs, along with an increase in the government initiative to encourage the use of electric vehicles, may help in driving the growth of electric vehicles, significantly. Consumer perception and willingness to purchase automobiles with new technologies drive the demand for these vehicles in countries, such as China, Japan, and Korea. China witnessed an increase in the adoption of battery electric vehicles across the country.
Spotlight on Chinese Market
China is the world's biggest car market, and Wuhan, the city at the center of the outbreak, is known as a "motor city" for being home to auto plants including General Motors, Honda, Nissan, Peugeot Group and Renault. For Honda alone, Wuhan accounts for about 50% of total production in China.
In 2019, Hubei Province, of which Wuhan is the capital, was the fourth-largest car producer in China, with about 10% of the country's car-making capacity and produced 2.24 million vehicles. China's automotive industry is entering a phase of rapid adjustment. In a constantly changing market environment, new technologies and models are triggering a profound transformation in the structure and ecology of this sector. China's focus on disruptive technologies such as autonomous, intelligent connected, and alternative fuel vehicles means there is real potential for it to lead the transformation of the automotive market.
A great number of Chinese automakers offer opportunities for suppliers in the intelligent connected vehicle (ICV) industry chain covering sensors, software and algorithms, communication systems, controllers, chips, connectivity systems and system integration, mobility services, entertainment services, parking services and charging systems, making China the one boasting the most number of start-ups in the ICV field and innovating at the fastest speed.
The Asia Pacific Automotive Logistics Market is Fragmented, the market is expected to grow during the forecast period due to the growing demand for electric vehicles and many other factors are driving the market. International players are dominated in the market.