Spare part logistics: Key market research findings
- APAC is the fastest-growing region of the market
- Aviation sector accounts for a majority share of the market’s revenue
- Key vendors – CEVA Logistics, DB Schenker, Deutsche Post DHL, Kuehne + Nagel, and UPS
Technavio’s market research analysts predict the global spare parts logistics market to grow at a CAGR of around 8% between 2016 and 2020. The growth of this market can be accredited to the higher profit margins for spare parts than for core vehicle sales. In mature markets, such as the US and Europe, the revenue from spare parts business is in the range of 30% to 35%. The supply chain is well established in these markets so as to reach healthy profit margins, which is more than 60%-70% higher compared to the traditional vehicle sales. APAC is expected to witness the fastest growth rate in the spare parts logistics market during the forecast period. Factors such as the augmented adoption of outsourced logistics services and the increasing number of manufacturing companies will contribute to the growth in the spare parts logistics market in APAC.
The new market research report from Technavio presents a breakdown and analysis of the spare parts logistics segments based on the end-user.
“The market is currently undergoing a surge in M&As. Sustained economic growth, growing industrialization, infrastructure development, and an increase in disposable income will boost the demand for motor vehicles. Mergers between companies in different regions helps improve their global presence. This enables them to deliver services at all points along the supply chain. Vendors in the market are entering into M&As to diversify their portfolios and deliver top quality logistical and transport services globally,” says Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
By 2020, the aviation sector will continue its dominance over the global spare parts logistics market with a market share of around 48%. Sustained economic growth, growing industrialization, infrastructure development, and an increase in disposable income are triggering an increase in the demand for motor vehicles. Rising sales and demand for automobiles and the subsequent increase in investment in the automotive sector will spur the demand for the spare parts.
The key vendors in the global spare parts logistics market include CEVA Logistics, DB Schenker, Deutsche Post DHL, Kuehne + Nagel, and UPS. The market is fragmented with the presence of big and small players but is largely dominated by small and medium enterprises (SMEs) who provide value-added services to customers. Several companies are entering into mergers and acquiring companies, leading to a consolidation in the market. Competition in the market is expected to intensify in the coming years with the entry of new players and more influx of local truck and warehouse owners. The market is capital-intensive and requires advanced technologies. Vendors in the market specifically compete in terms of price, delivery speed, reliability, and supply chain capacity to gain maximum market shares.
A more detailed analysis is available in the Technavio report, Global Spare Parts Logistics Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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