Spare Parts Logistics Market size to record USD 25.36 billion growth from 2023-2027, Enhancing the operating efficiency with Industry 4.0 is one of the key market trends, Technavio

NEW YORK, May 6, 2024 /PRNewswire/ -- The global spare parts logistics market size is estimated to grow by USD 25.36 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of 7.00% during the forecast period.

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Key Trends Fueling Growth

• Enhancing the operating efficiency with Industry 4.0: 
• Industry 4.0 merges advanced physical and digital technologies, revolutionizing manufacturing. It integrates IoT, cloud computing, cognitive computing, and cyber-physical systems. This transformation optimizes operations, minimizes risks, and fosters growth.
• Global manufacturing output is set to rise, facilitated by 24-hour production and enhanced equipment effectiveness. Customization, previously limited, now thrives, accelerating product delivery. With expanded global footprints, connectivity across locations strengthens, enabling efficient spare parts logistics.
• Predictive maintenance ensures uninterrupted operations. Network flexibility facilitates seamless operations relocation. As Industry 4.0 proliferates, industrial efficiency improves, positively impacting spare parts logistics demand. This trend is projected to drive market growth.

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Major Challenges:

• Adoption of 3D printing in manufacturing industry 
• With 3D printing, spare parts makers produce and send parts the same day, cutting inventory costs. Storing digital blueprints avoids storing physical parts. This saves time and labor by skipping manufacturing, storing, and shipping. Electronics and auto industries are using 3D printing for spare parts, reducing logistics costs by 39%-45%.
• Companies can make products locally, cutting import/export. GM made 3D-printed seat brackets, 40% lighter and 20% stronger than usual. In the future, manufacturers may sell part blueprints to suppliers, who then sell to users. This could reduce spare parts logistics.

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Segmentation Overview

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 automotive segment holds a significant market share, driven by the need for frequent replacement of spare parts like filters, brakes, suspension, and shock absorbers in passenger cars. With a gradual increase from USD 21.35 billion in 2017 to continued growth till 2021, this segment is poised for further expansion.

• The demand surge is primarily from the passenger car sector, fueled by the rising numbers of both passenger and commercial vehicles. Notably, SUVs and commercial vehicles are driving this growth trend. APAC and Europe emerge as key contributors to this thriving market.
• Automakers are strategically increasing production capacities, particularly targeting emerging markets. The establishment of manufacturing facilities in developing nations further augments the demand for automotive spare parts, promising sustained market growth ahead.

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Analyst Review

The Spare Parts Logistics Market encompasses the transportation, delivery, warehousing, and inventory management of components for various industries, including Aerospace, Electronics, and Healthcare. The performance and complexity of modern machinery necessitate the use of digital technologies and automation for real-time tracking and efficient supply chain management.

E-commerce platforms have further revolutionized the market, enabling bottom-up methodology and data triangulation approaches for optimizing utilization rate and average sale price. Inflation and other economic factors necessitate effective inventory management to mitigate costs and ensure timely delivery.

Market Overview

The Spare Parts Logistics Market plays a crucial role in the efficient management and delivery of essential components for various industries. This sector comprises companies that specialize in the procurement, inventory, storage, and distribution of spare parts. These logistics providers employ advanced technologies such as predictive maintenance and real-time tracking to optimize inventory levels and minimize downtime.

The market is driven by factors like increasing industrial automation, the growing demand for customized solutions, and the need for faster delivery times. Additionally, the e-commerce sector's growth has led to an increase in the demand for spare parts logistics services.

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Key Topics Covered:

 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 Venodr Landscape
11 Vendor 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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