Automotive Logistics Market Trends

Growth Drivers

• Digital transformation and smart logistics integration: The automotive logistics sector is experiencing record growth through digital transformation programs that utilize artificial intelligence, IoT technologies, and sophisticated routing algorithms to streamline supply chain operations. Firms are investing heavily in digital platforms that provide real-time visibility, predictive analytics, and automated decision-making features, thereby reducing costs and improving delivery performance. In February 2023, Toyota Tsusho Corporation collaborated with Pioneer Corporation to create the Optimized Delivery Planning Service using proprietary Piomatix LBS APIs and a mobility AI platform. The partnership registered impressive outcomes, with over 94% on-time delivery rates and a decrease of 12% in overall delivery time for Tokyo-based logistics service firm WILLPORT Co., Ltd., highlighting the revolutionary potential of digital logistics solutions.
   
• Electrification and adoption of sustainable transportation: The shift to electric vehicles and sustainable transport solutions is opening up substantial opportunities for automotive logistics players to build specialist skills for managing electric vehicle components, batteries, and charging points. This trend demands complex logistics networks that are capable of maintaining temperature-controlled environments, safety procedures for hazardous materials, and specialized handling apparatus. BYD and CEVA Logistics exhibited European ground decarbonization initiatives in September 2024 at IAA Transportation Hannover, where CEVA received four BYD ETH8 pure-electric trucks in January 2025. The partnership is CEVA's way of supporting its net-zero goal of 2050 through green transportation solutions with the capability to keep operations running efficiently in logistics activities.
   
• Strategic acquisitions and worldwide network expansion: Auto logistics firms are recording impressive growth through strategic purchases that increase geographic coverage, service capabilities, and technological capabilities to serve the changing needs of global automotive manufacturers. In November 2024, Kuehne+Nagel purchased a 51% majority holding in IMC Logistics, a leading US-based marine drayage provider with more than 40 years of experience in intermodal solutions. IMC moves 2 million TEUs a year in drayage and rail movements across 49 facilities at primary US seaports and rail centers, generating approximately $800 million in revenue in 2023 and enabling Kuehne+Nagel to offer more competitive solutions for sea freight customers' value chains. Such consolidation efforts produce end-to-end service networks that can manage complicated global supply chains and sophisticated automotive parts.

Global Car Production Growth Trends & Impact on Automotive Logistics

Source: ACEA

Challenges

• Freight transportation volatility and capacity constraints: The automotive logistics sector is under serious threat from continued volatility in freight transport services and capacity shortages that affect supply chain stability and cost predictability. The volatility results in planning challenges for automotive manufacturers who need reliable logistics services to help facilitate just-in-time manufacturing operations and global supply chain coordination. In February 2025, the US Bureau of Transportation Statistics announced the December 2024 Freight Transportation Services Index decreased 0.1% compared to the previous month and decreased 1.0% compared to December 2023, with for-hire freight shipments at 137.3, still 2.9% below the all-time high in August 2019. The freight index decreased for the second month in a row, reflecting continued pressure faced by automotive supply chains that need assured freight movement.
   
• Growing operating expenses and service complexity: Automotive logistics carriers are facing growing operating expenses fueled by peak season premium surcharges, unique handling needs, and mounting service complexity that complicate profitability and competitive pricing models. These costs are especially concerning for carriers during high-demand seasons when premium pricing tiers become increasingly impactful on logistics budgets. FedEx in 2025 reported higher peak season surcharges than last year, starting September 29 with increasing prices from November 24 through December 28, encompassing the peak holiday shipping period. The carrier assesses residential delivery fees for more volume shippers with extra handling surcharges of $8.25 to $10.90 and oversize fees of $90 to $108.50 per package, which will impact automotive suppliers' logistics cost planning and supply chain optimization.