The Europe automotive logistics market  is a critical engine for manufacturer operations and aftermarket success.

The Europe Automotive Logistics Market was valued at USD 65.5 billion in 2025 and is projected to reach USD 105.6 billion by 2032, growing at a CAGR of 7% during the forecast period.

This long-form market research blog provides an authoritative look into the dynamic European landscape, analyzing the key metrics, growth drivers, competitive strategies, and the comprehensive forecast to 2030.

Market Overview

The Europe automotive logistics market is a highly fragmented yet high-value sector. Data confirms its robust financial standing, with the market expected to reach a significant revenue projection. In 2024, the market size was valued at approximately USD 64.7 billion. Looking ahead, the market is poised for considerable expansion, with an expected Compound Annual Growth Rate (CAGR) projected in the range of 3.9% to 8.1% between 2025 and 2030, depending on macroeconomic factors and the speed of transition to electric vehicles. This trajectory is set to push the market valuation past USD 75 billion by the end of the forecast period.

Major opportunities in this market are clearly centered around the rapid adoption of Electric Vehicles (EVs), which necessitate specialized and temperature-controlled battery logistics. Furthermore, the increasing complexity of global supply chains and the push for sustainability across the EU are key industry drivers fueling demand for sophisticated, third-party logistics (3PL) and digital supply chain solutions. The market’s resilience is underpinned by the established, dense manufacturing base, especially in countries like Germany and France, which generate substantial inbound and outbound logistics volumes.

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Europe automotive logistics market 

Market Size & Market Share Analysis

Analyzing the Europe automotive logistics market size and market share reveals a mature yet evolving landscape. In terms of service activity, Transportation remains the dominant segment, accounting for the largest market share—historically over 60% of total revenue. This is primarily anchored by road haulage, which provides the flexibility required for the industry’s stringent Just-in-Sequence (JIS) and Just-in-Time (JIT) production models.

However, the Warehousing and Value-Added Services (VAS) segments are exhibiting the fastest growth trends. The warehousing segment is seeing a surge in demand driven by the need for specialized storage, battery conditioning, and complex kitting and sub-assembly processes managed by integrated logistics providers. This shift signifies a move toward more holistic, end-to-end supply chain management rather than purely transactional transport services. The market concentration remains relatively low, indicating significant competitive intensity among both large global 3PLs and smaller, niche regional specialists.

Growth Trends & Key Market Drivers

The growth trends in European automotive logistics are inseparable from the macro-level transitions impacting the continent's manufacturing sector. Several key market drivers are dictating the current expansion:

• Electrification and Battery Logistics Demand: The most influential driver is the transition to EVs. Lithium-ion batteries are classified as dangerous goods, demanding stringent safety protocols, temperature-controlled transport, and specialized warehousing. This creates a high-value, fast-growing niche for expert EV-centric demand analysis and supply chain design.

• Digital Transformation and IoT: The move to digital logistics is critical for enhancing visibility and efficiency. The adoption of technologies like IoT for real-time fleet tracking, AI-driven route optimization, and digital twins for warehouse management is revolutionizing operations, reducing lead times, and improving supply chain resilience.

• Sustainability Mandates (EU Green Deal): Strict environmental regulations, particularly the push for carbon neutrality, are compelling logistics providers to adopt green logistics strategies. This includes investing in electric or hydrogen-powered fleets, increasing the utilization of cost-effective and low-emission rail and short-sea freight, and designing multimodal networks.

• Outsourcing to 3PL/4PL: To manage increasing supply chain complexity (e.g., higher SKU counts from software-defined vehicles) and downward cost pressures, Original Equipment Manufacturers (OEMs) are increasingly outsourcing core logistics functions to integrated Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) providers.

Segment Analysis

A granular segment analysis reveals critical shifts in the market's structure:

• By Service: While Transportation is the largest, Warehousing is the highest-growth segment. Reverse Logistics is also seeing increased adoption, driven by warranty returns and the circular economy for EV batteries and end-of-life vehicle (ELV) components.

• By Type (Cargo): The segment for Automobile Parts/Components (Inbound Logistics) holds a substantial share, serving assembly lines across the continent. However, the transport of Finished Vehicles (Outbound Logistics) remains a cornerstone. Crucially, the cargo category for EV Batteries and Power-Electronics represents the fastest-expanding niche, projected to grow at a significantly higher CAGR than traditional flows.

• By End User/Flow: OEM Logistics constitutes the majority of the market value, supporting mass-production facilities. Yet, Aftermarket Logistics is an accelerating area, fueled by the rising average age of the European car parc and the proliferation of e-commerce, which necessitates agile, small-lot, high-frequency distribution networks for spare parts.

Competitive Landscape & Key Players

The competitive landscape of the Europe automotive logistics market is characterized by intense competition among global logistics giants and specialized regional players. The ability to offer a unified, digitized, and sustainable solution is the primary differentiator.

Key players, including DHL Supply Chain, DB Schenker, CEVA Logistics AG, DSV, GEODIS, and Kuehne + Nagel, are leveraging their global networks and substantial capital for strategic investments. Their strategies involve:

• Expansions: Significant investment in specialized warehousing capacity, particularly in Central and Eastern Europe (e.g., Poland and Hungary), to support the regional performance of new EV Gigafactories.

• Product Developments: Launching advanced digital solutions, such as Control Tower platforms and proprietary Transport Management Systems (TMS), to provide enhanced visibility and predictive analytics.

• Partnerships: Forming strategic alliances with technology firms and battery recyclers to secure a dominant position in the emerging EV battery logistics value chain.

• Market Positioning: Shifting from pure asset-based transport to becoming integrated supply chain partners, offering complex VAS and consultancy.

The fragmentation in the market means that while global firms lead by revenue, local specialists maintain a strong market share in niche areas, such as specialized car hauling or domestic in-plant logistics, particularly in automotive hubs like Germany and Spain.

Regional Insights

While a North America or Asia-Pacific analysis would show different drivers, Europe is distinct due to its dense network and strong regulatory environment.

• Germany: The largest market by revenue, driven by its status as a major OEM production hub and a center for premium vehicle manufacturing. Its focus is on technology adoption and sustainability.

• UK: Expected to register a high CAGR, supported by premium segment exports and the growing need for specialized logistics for domestically produced EV components.

• Central & Eastern Europe (e.g., Poland, Hungary): These regions are experiencing the fastest growth in logistics investment due to competitive labor costs, proximity to Western EU markets, and the establishment of new battery and vehicle production facilities.

• France and Spain: Maintain substantial market share, supported by robust local manufacturing and strong outbound logistics networks.

Future Outlook & Forecast to 2030

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The future outlook for the Europe automotive logistics market is one of continuous, technology-driven evolution. The overall forecast to 2030 remains highly positive, with growth being moderated by general economic stability but fundamentally accelerated by structural shifts.

The single largest major opportunity is becoming a master of the complex, safety-critical logistics required for high-voltage battery flows. Companies that successfully integrate multimodal transport solutions, deploy advanced digital tools, and achieve verifiable sustainability targets will capture the majority of the market's value growth. The market is not just moving components; it is integrating new value chains. The transition from Inbound and Outbound logistics to a comprehensive, circular Aftermarket and Reverse Logistics ecosystem will define the winners in this dynamic sector.

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Europe Automotive Logistics Market: FAQ Section

What is the estimated market size of the Europe Automotive Logistics Market?

The Europe Automotive Logistics Market size was valued at approximately USD 64.7 billion in 2024 and is projected to surpass USD 75 billion by 2030, reflecting steady growth driven by evolving industry requirements.

What is the expected CAGR for the Europe Automotive Logistics Market through 2030?

The Compound Annual Growth Rate (CAGR) for the Europe Automotive Logistics Market is forecast to be in the range of 3.9% to 8.1% during the 2025–2030 forecast period, with the higher end contingent on rapid EV adoption and full supply chain digitalization.

Which factors are the primary growth drivers for this market?

The primary growth factors are the rapid shift to Electric Vehicles (EVs) and the resulting demand for specialized battery logistics, the increasing adoption of digital logistics solutions (IoT, AI) for efficiency, and strict EU mandates for sustainable (green) logistics.

Which segment is experiencing the fastest growth trend?

While Transportation holds the largest market share, the Warehousing segment and the niche for EV Battery Logistics are exhibiting the fastest growth trends, driven by the need for specialized storage and value-added services like conditioning and kitting.

Who are the key players shaping the competitive landscape?

Key players in the competitive landscape include major global 3PL providers such as DHL Supply Chain, DB Schenker, CEVA Logistics AG, DSV, GEODIS, and Kuehne + Nagel, who are focusing on digital transformation and specialized EV supply chain solutions.

Which European country dominates the automotive logistics market by revenue?

Germany currently dominates the Europe Automotive Logistics Market by revenue, due to its position as the largest manufacturing and export hub for premium and standard vehicles across the continent.