Finished vehicles logistics market to grow by USD 26.9 billion (2025-2029)

Press Release, 11 February 2025

Report with market evolution powered by AI – The global finished vehicles logistics market size is estimated to grow by USD 26.9 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 5.1% during the forecast period. Growing automotive industry is driving market growth, with a trend towards increased sales of electric vehicles. However, shortage of truck drivers poses a challenge. Key market players include ACERTUS, AP Moller Maersk AS, ARS Altmann AG, Berge Logistics, CargoTel Inc., CEVA Logistics SA, Deutsche Post AG, DSV AS, Ekol Lojistik AS, Hellmann Worldwide Logistics SE and Co KG, Imperial Logistics Ltd., Jack Cooper Investments Inc., Koopman Logistics Group BV, Kuehne Nagel Management AG, NFI Industries Inc., Nippon Express Holdings Inc., Omsan Lojistik AS, Ryder System Inc., Schnellecke Group AG and Co. KG, SNCF Group, United Parcel Service Inc., and XPO Inc.

Key Market Trends Fueling Growth

The global shift towards electric vehicles (EVs) is driving growth in the finished vehicles logistics market. With increasing sales of EVs, particularly light-duty vehicles, buses, and smaller vehicles, there is a rising demand for efficient logistics solutions. Major automakers are investing heavily in transportation electrification, committing over USD140 billion in 2022. Consumers are drawn to EVs for their cost-effectiveness and reduced environmental impact, leading to increased production and export. This trend is expected to continue, necessitating advanced logistics capabilities to meet demand during the forecast period. 

The Finished Vehicles Logistics Market is experiencing significant trends with the increasing demand for efficient and cost-effective transportation solutions. Technologies like tracking and traceability systems are gaining popularity to ensure timely delivery and reduce the risk of vehicle damage. Blockchain technology is also being explored for secure and transparent transactions. The use of alternative fuels and electric vehicles is increasing, leading to the need for specialized logistics solutions. Additionally, there is a growing focus on sustainability and reducing carbon footprint in the industry. The market is expected to continue growing with these trends shaping the future of finished vehicles logistics. 

Market Challenges

• The global finished vehicles logistics market faces a significant challenge due to the shortage of truck drivers. This issue is primarily caused by low remunerations in many urban and semi-urban markets, leading to an aging workforce and a limited number of new entrants. The American Trucking Association reported a record shortage of 80,000 drivers in 2021, with potential growth to 160,000 by 2030. Walmart addressed this issue by offering first-year salaries of USD110,000 to its private fleet drivers. The lack of adequate pay and long working hours negatively impact drivers’ health and productivity, leading to potential accidents and delays in order fulfillment. These factors can ultimately restrict the growth of the finished vehicles logistics market.
• The Finished Vehicles Logistics Market faces several challenges in the transportation of vehicles from manufacturers to dealers and customers. These challenges include the need for secure and efficient handling of vehicles, timely delivery, and compliance with regulations such as customs and documentation requirements. Additionally, the increasing use of technology in logistics, such as real-time tracking and automation, presents both opportunities and challenges for market players. The complex nature of international trade, including different regulations and taxes in various countries, adds to the complexity of the market. Effective management of these challenges is crucial for companies to remain competitive in the Finished Vehicles Logistics Market.