Spare Parts Logistics Market Share, Size, Trends, Industry Analysis Report, By Type (Ocean Freight, Air Freight, Inland Freight); By End User; By Region; Segment Forecast, 2023 - 2032
- Published Date:Jun-2023
- Pages: 112
- Format: PDF
- Report ID: PM3419
- Base Year: 2020
- Historical Data: 2019-2021
Report Outlook
The global spare parts logistics market was valued at USD 45.14 billion in 2022 and is expected to grow at a CAGR of 4.65% during the forecast period. Growing average age of cars is indeed fueling the market as cars get older, they tend to require more maintenance and repairs, and this leads to a higher demand for spare parts. This demand creates a need for efficient logistics systems that can quickly and reliably transport these parts to mechanics and repair shops. The average age of cars is continuously rising as technology develops and they become more durable. The average age of cars has risen from 9.78 to 11.33 years since 2002, an increase of about 16%. Longer-lasting automobiles are a huge advantage for aftermarket auto parts producers since older automobiles need more repairs and maintenance, which calls for more aftermarket components. In turn this will further create a wide range of opportunities for the spare parts logistics market in coming years.
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Industry Dynamics
Growth Drivers
With the growth of international trade, the need for efficient and cost-effective logistics services to transport spare parts across borders has increased. The spare parts logistics market is driven by the need to meet this demand and provide reliable and efficient transportation solutions. The rise of e-commerce has created a demand for fast and reliable delivery of spare parts to customers around the world. This has led to the development of new logistics solutions and the growth of the spare parts logistics market. In 2020, the US, which has the greatest economy in the world, will have a $16 billion eCommerce market share. This will further fuel the growth of the market in coming years.
The supply chains for spare parts have become increasingly complex, with multiple suppliers and distribution centers involved. The spare parts logistics market has grown in response to the need to manage these complex supply chains and ensure timely delivery of spare parts. There is a growing focus on sustainability in the logistics industry, with many companies looking to reduce their carbon footprint. For instance, Amazon has committed to becoming carbon neutral by 2030 and has made investments in battery-powered fleets and renewable energy sources to do it. The spare parts logistics market is driven by the need to provide sustainable transportation solutions that meet the needs of customers while minimizing environmental impact.
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Report Segmentation
The market is primarily segmented based on type, end user and region.
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By Type |
By End User |
By Region |
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Ocean Freight is expected to witness fastest growth during forecast period
Ocean Freight segment is projected to experience a faster growth rate in the study period by enabling the transportation of spare parts across the world at a lower cost than other modes of transportation. Spare parts logistics involves the timely delivery of spare parts to their destination, which is critical for the efficient operation of manufacturing plants, maintenance and repair operations, and other industries that rely on spare parts. With the globalization of trade, the demand for spare parts logistics has increased, and ocean freight has emerged as a preferred mode of transportation for moving spare parts across long distances.
Ocean freight provides a cost-effective solution for shipping spare parts in bulk, which can help to reduce transportation costs for businesses. Additionally, ocean freight offers a high level of reliability and efficiency in the transportation of spare parts, with regular schedules and established trade routes that make it easier to plan and coordinate shipments. Furthermore, with the growth of e-commerce and online marketplaces, the spare parts logistics market has seen an increase in demand for international shipping of spare parts. Ocean freight provides a reliable and efficient means of transporting spare parts across borders, which is essential for businesses that require timely and cost-effective delivery of spare parts to their customers.
Automotive segment is expected to hold the significant revenue share in 2022
Automotive segment is projected to experience higher revenue share in the study period. As the automotive industry continues to grow, the demand for spare parts also increases. This growth is due to several factors, including an increase in the number of vehicles on the road, longer lifecycles of vehicles, and an increase in the complexity of vehicle components. The need for timely and efficient delivery of spare parts has led to the growth of the spare parts logistics market.
The automotive industry has recognized the importance of after-sales services and the role they play in customer satisfaction and retention. As a result, many automakers and dealerships are investing in spare parts logistics to ensure timely delivery of spare parts to their customers, which in turn drives the growth of the spare parts logistics market. This industry is also adopting lean inventory management practices, which require efficient and reliable logistics services to ensure the timely delivery of spare parts. The automotive end user is a major driver of this trend, as automakers and dealerships strive to reduce inventory carrying costs while ensuring that spare parts are readily available when needed.
APAC is expected to witness higher growth rate in the study period
APAC registered the highest growth rate in the forecast period as it has a large and growing middle class, which is driving the demand for automobiles. This growth is expected to continue, with the region accounting for a significant share of global automotive production in the coming years. According to Moody's Investor Service, APAC will be the most robust of the major regions in 2022, increasing by 3.5% owing to expansion in China and India. The largest car market in the world, China, is expected to have an increase in auto sales of 4% in 2022 and another 3.5% in 2023. The increased demand for automobiles in the region is expected to drive the growth of the spare parts logistics market as well, as the need for timely and efficient delivery of spare parts increases.
North America garnered with the larger revenue share in the study period
North America is expected to have a larger revenue share for the market as it has well-established automotive and manufacturing industries, which are major users of spare parts logistics services. The region is home to several large automobile manufacturers and industrial corporations that require efficient and reliable logistics services to support their operations. This demand is expected to drive the growth of the spare parts logistics market in this region. North America has a strong e-commerce infrastructure, with many consumers preferring to shop online for goods and services.
Nowadays, the average internet shopper in North America spends about USD 3,500 each year. In order to fill orders with the support of in-car, garage, & in-house deliveries, retailers across the globe are bolstering their delivery capabilities. By 2022, the regional market alone is anticipated to reach USD 1 trillion, with fashion emerging as a significant business. This trend is expected to drive the demand for spare parts logistics services in the region, as online retailers require fast and efficient delivery of spare parts to meet customer demand.
Competitive Insight
Some of the major players operating in the global market include CEVA Logistics, DB Schenker, Deutsche Post, DSV, FedEx, Kerry Logistics Network, Kuehne + Nagel, Logwin, Nippon Express, Toyota Tsusho, & TVS Supply Chain.
Recent Developments
- In April 2023, CMA CGM Group disclosed that it had started exclusive negotiations to acquire the transport and logistics operations now held by Bollore Logistics.
- In January 2023, DB Schenker introduced newly formed NVOCC under the name "Great Ocean Line " and its registered headquarters in Singapore.
Spare Parts Logistics Market Report Scope
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Report Attributes |
Details |
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Market size value in 2023 |
USD 46.47 billion |
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Revenue forecast in 2032 |
USD 69.96 billion |
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CAGR |
4.65% from 2023 - 2032 |
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Base year |
2022 |
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Historical data |
2019 - 2021 |
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Forecast period |
2023 - 2032 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2023 to 2032 |
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Segments covered |
By Type, By End User, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
CEVA Logistics, DB Schenker, Deutsche Post, DSV A/S, FedEx, Kerry Logistics Network, Kuehne + Nagel International, Logwin, Nippon Express, Toyota Tsusho, TVS Supply Chain & United Parcel Service. |
FAQ's
The global spare parts logistics market size is expected to reach USD 69.96 billion by 2032.
Top market players in the Spare Parts Logistics Market are CEVA Logistics, DB Schenker, Deutsche Post, DSV, FedEx, Kerry Logistics Network, Kuehne + Nagel, Logwin.
North America contribute notably towards the global Spare Parts Logistics Market.
The global spare parts logistics market expected to grow at a CAGR of 4.65% during the forecast period.
The Spare Parts Logistics Market report covering key are type, end user and region.
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