Spare Parts Logistics Market size is set to grow by USD 24.2 billion from 2024-2028, Increase in electronic components trade between India and China boost the market, Technavio

NEW YORK, July 10, 2024 /PRNewswire/ -- The global spare parts logistics market size is estimated to grow by USD 24.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.6% during the forecast period. Predictive maintenance plays a crucial role in the spare parts logistics industry by enhancing operational efficiency and reducing downtime. By leveraging predictive analytics and IoT sensors, companies can anticipate equipment failures and schedule maintenance proactively, ensuring that spare parts are available precisely when needed. This approach aligns with the industry's shift towards enhancing operating efficiency through Industry 4.0 technologies. Despite challenges like the adoption of 3D printing, major players such as CEVA Logistics, Deutsche Post AG, and FedEx Corp. are investing in advanced logistics solutions to meet growing global demand, particularly driven by increased electronic components trade between India and China.

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Market Driver

Industry 4.0, the fusion of physical and digital technologies, is revolutionizing manufacturing sectors worldwide. This transformation includes the Internet of Things (IoT), cloud computing, cognitive computing, and cyber-physical systems. By streamlining operations, reducing business risks, and ensuring growth, Industry 4.0 will increase global manufacturing output. With 24-hour production becoming standard, overall equipment effectiveness is crucial. Industry 4.0 enables customized manufacturing, reducing delivery times. As industrial manufacturers expand globally, Industry 4.0 ensures higher connectivity, improving supply chain efficiency for spare parts logistics. Network flexibility allows shifting operations among facilities, enhancing industrial efficiency and boosting spare parts logistics requirements. These benefits are expected to fuel market growth during the forecast period. 

Spare parts logistics is a critical aspect of aftermarket services in various industries, including Aerospace, Electronics, and Healthcare. Trends shaping this market include predictive analytics for proactive maintenance, reverse logistics for circular economy, and digital technologies like AI for efficient warehouse management and inventory control. Aftermarket services encompass repair, refurbishment, and remanufacturing, which add value to customers and reduce costs. Challenges include high costs, unauthorized suppliers, and counterfeit spare parts. Changing customer demands, global economic climate, and political instability impact the market. Digitization and green logistics are essential for sustainability and efficient transportation modes like air, sea, and land. Industrial industries require complex spare parts logistics for modern machinery. Performance-critical components need timely delivery, and warranty management and field service support ensure customer satisfaction. Major restraints include the complexity of spare parts and the need for value-added services. Overall, spare parts logistics plays a crucial role in maintaining industrial productivity and performance. 

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Market Challenges

• Spare parts manufacturing is undergoing a significant transformation with the adoption of 3D printing technology. Instead of maintaining inventories of occasionally ordered spare parts, manufacturers are moving towards on-demand manufacturing to reduce costs associated with production, storage, packaging, and transportation. By storing digital blueprints of components, manufacturers can produce and ship parts directly to customers when needed, eliminating the need for inventory storage. This approach saves manufacturers and suppliers inventory costs and reduces logistics expenses by 39%-45%. The use of 3D printing is increasingly popular in industries such as electronics, automotive spare parts, and workshop tools. Additionally, manufacturers can produce parts domestically without establishing production centers, reducing import and export costs. In the future, manufacturers may sell blueprints to suppliers, allowing them to manufacture and sell spare parts components directly to end-users, potentially reducing the need for spare parts logistics functions. Overall, the adoption of 3D printing in spare parts manufacturing offers cost savings, increased efficiency, and flexibility.
• Spare parts logistics is a critical aspect of modern manufacturing, aerospace, electronics, healthcare, and industrial activities. The challenges in this market include transportation and delivery of spare parts, warehousing and inventory management, and the complexity of dealing with components for various industries. The use of modern machinery and digital technologies, such as automation and real-time tracking, is essential for optimal performance. In the spare parts market, sectors like e-commerce and supply chain management face unique challenges due to inflation and the need for inventory optimization. Market statistics and projections show that the market is growing, with key players focusing on pricing, services supplied, and market engineering. Developments in advanced technologies and joint ventures are shaping the future vision of this industry. Decision-makers must consider external elements, such as market trends and competitor strategies, as well as internal elements, like utilization rate and average sale price, to make informed decisions. This investor's guide provides percentage splits and market shares, segment breakdowns, and market breakdowns for a better understanding of the market landscape.

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Segment Overview 

This spare parts logistics market report extensively covers market segmentation by

1. End-user 
• 1.1 Automotive
• 1.2 Electronics
• 1.3 Industrial
• 1.4 Aerospace
• 1.5 Others
2. Type 
• 2.1 Forward
• 2.2 Reverse
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Automotive- The global spare parts logistics market, particularly in the automotive segment, is projected to experience notable growth due to the increasing demand from the passenger vehicle sector. Key spare parts like filters, brakes, suspension, and shock absorbers are frequently replaced in passenger vehicles. The rising number of in-use passenger and commercial vehicles, fueled by the popularity of SUVs, pickup trucks, and light commercial vehicles, is driving global sales. APAC and Europe are significant contributors to the market, with North America holding a substantial share of commercial vehicle sales in 2020. Vehicle manufacturers are expanding production to capitalize on market opportunities in developing economies, leading to an increase in the demand for automotive spare parts and subsequently fueling the growth of the global spare parts logistics market during the forecast period.

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Research Analysis

Spare parts logistics refers to the management and transportation of spare components for the repair and maintenance of modern machinery and equipment in various industries, including aerospace, electronics, healthcare, manufacturing, and industrial activities. This market is crucial for ensuring the optimal performance of complex systems and minimizing downtime. The logistics of spare parts involves warehousing, inventory management, and delivery using transportation methods such as air, sea, and ground. Digital technologies and automation play a significant role in modern spare parts logistics, enabling real-time tracking, e-commerce, and supply chain management. Factors such as inflation, complexity, and the utilization rate of spare parts impact the market, requiring a bottom-up methodology and data triangulation approaches to accurately assess market size and trends. The average sale price of spare parts also influences market dynamics.

Market Research Overview

Spare parts logistics refers to the management and transportation of spare components for modern machinery and industrial activities. This market encompasses warehousing, inventory management, and delivery of spare parts for various industries such as aerospace, electronics, healthcare, and manufacturing. The complexity and performance requirements of these industries necessitate advanced technologies like real-time tracking, predictive analytics, and automation. E-commerce and supply chain management have disrupted traditional spare parts logistics, leading to the emergence of digital technologies and market engineering. Inflation, pricing, and utilization rate are key market statistics, while percentage splits and market shares provide segment breakdowns. Decision-makers must consider external elements like political instability and global economic climate, as well as internal elements like major restraints such as high costs, unauthorized suppliers, and counterfeit spare parts. The future vision of spare parts logistics includes circular economy principles, such as repair, refurbishment, and remanufacturing, as well as the use of artificial intelligence, online sales channels, and value-added services like warranty management and field service support. Market projections indicate continued growth, driven by changing customer demands, digitization, and the increasing importance of aftermarket services.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Automotive
• Electronics
• Industrial
• Aerospace
• Others
• Type
• Forward
• Reverse
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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