Car Shipping Industry Trends and Future Outlook

As a vehicle shipment company, we must keep our fingers on the pulse of the industry change, trends, and updates. This isn’t just for our benefit, it's so that we can offer you, our beloved clients, top offerings that align with contemporary industry updates and changes. We’re determined to be the best in the business! 

In this article, we will discuss car shipping industry trends and future outlook. Let's get into it. 

What Is The Car Shipping Industry?

Companies within our field encompass a wide range of services dedicated to the transportation of vehicles, including cars, trucks, vans, buses, tractors, and motorcycles, across regional, national, and international boundaries. The car shipment sector has various offerings and companies that support the shipment of these vehicles, either as single units or as part of a larger fleet. 

This industry is pretty diverse and includes businesses that operate on different scales, from small, specialized firms to large logistics companies. However, it distinctly excludes corporations whose business is automobile towing services, setting a clear boundary between routine vehicle relocation and emergency or recovery transportation. The vehicle shipping industry plays an important role in the automotive supply chain, ensuring vehicles' efficient and safe delivery to meet consumer and commercial needs.

We work with all sorts of individuals! People need their vehicles moved for relocation, a new job, for attending college, buying or selling, or simply enjoying their vehicle in an exciting new location. We also ship a huge range of vehicle offerings, not limited just to cars. Here’s what we ship:

• Cars
• Trucks
• Boats
• Motorcycles
• ATVs
• UTVs
• RVs
• Tractors
• Construction Equipment
• Buses
• Golf carts

… and more!

If you don't see the vehicle you are hoping to ship on this list, don't worry. Please contact us and we can chat about your needs and figure out the best way to support you. 

Industry Valuation 2023 

The worldwide car carrier market is revving up for some impressive growth, with expectations to cruise to a whopping US $1.0052 billion by 2027, accelerating at a steady compound annual growth rate of 3% from 2023 to 2027. This surge in the market's value is fueled by a blend of a growing urban population, increased vehicle sales, a heightened appetite for foreign cars, and sleeker, more efficient vessel designs. 

However, this journey isn't without its speed bumps – challenges like piracy threats, capacity, and intense geopolitical tensions remain on the horizon. But, the industry's got its headlights on some bright trends we will discuss later.

When it comes to market use and trends, it's still all about enclosed trailer shipment and open carrier transport. As of 2022, the use of enclosed transport was leading the pack. 

Geographically, the car transportation market is a global race, with contenders like Japan, Europe, Korea, NAFTA, ASEAN, China, and others. And in 2022, it was Japan speeding ahead with the largest share of the market. Buckle up, because the global car carrier market is on a high-speed journey to the future.

Current 2023 Trends In the Car Shipping Industry

This year, the car shipping industry is going through a dynamic shift, shaped by various key trends, each playing a significant role. Here are the main trends we are seeing: 

An Increased Demand for Electric Vehicles

There's an electric buzz in the air and it's all thanks to the skyrocketing popularity of electric vehicles!

Electric vehicles, commonly called EVs, are the stars of the automotive world right now, running entirely on electricity instead of traditional gasoline or diesel. They're like the cool, eco-friendly cousins of conventional cars, powered by electric motors and batteries. Their batteries are rechargeable, making EVs not just super clean (hello, zero tailpipe emissions!), but they’re also super quiet. With a plug-in-and-go lifestyle, EVs are reshaping our roads, offering a greener, more sustainable way to zip around town or cruise on highways, all while helping the planet take a much-needed breath of fresh air.

Electric vehicles are certainly trending, but they are not trendy. There's a big difference. These types of vehicles are not going anywhere and we know we will only see more of them as many vehicle companies, new and old, compete to produce the hottest new sustainable vehicle.  The IEA estimated that global EV sales passed 3 million units in 2020. That’s over 4% of global vehicle sales. In 2023, that figure is guessed to have soared to 14 million. 

The rising popularity of EVs marks a significant shift in consumer preferences, which has implications for our shipping industry. 

The unique requirements for handling and transporting EVs, primarily due to their sophisticated and sensitive battery systems, demand specialized equipment and knowledge. This shift has led to the development of new protocols and training for handling these vehicles safely and efficiently, ensuring they are transported without compromising their integrity. At ShipLux, we have taken this in our stride, and we have done extensive training and knowledge with our entire team on how to best deal with these cool cars. 

Technological Advancements and Artificial Intelligence 

It feels like every day there's a new tech advancement hitting the scene! These are exciting and impact our industry. 

Namely, the integration of GPS tracking systems has become increasingly sophisticated, providing real-time location data and enhancing route planning. Electronic Logging Devices (ELDs) are now widely used for better compliance with regulations and for monitoring vehicle and driver performance.

At ShipLux, we have always encouraged our clients to track their shipments with our exciting tracking information, which allows you to see it in real-time. Someone will always be there to answer your questions, 24/7! Not only will someone answer you anytime, but we promise it will be a human (not some annoying robot!) and they will work with you on the platform you like. If you prefer a phone call, you got it! More of a Facebook Messenger use? Awesome! Or maybe you’re a tech-savvy texter? Prepare for text updates! Our pleasant team will offer you regular updates and timing on your shipment. 

Artificial intelligence (AI) and the car shipping industry have been cruising down the same road for quite some time now. For decades, many leaders of the industry have harnessed the power of AI, using it to jazz up the tracking of shipments and streamline delivery schedules. This early embrace of AI was a game-changer, saving heaps of time and money while offering customers information on their deliveries with increased precision.

Fast forward, AI's role has shifted gears. Now, it's all about predictive shipping services, helping customers plan their schedules better by predicting delivery times with uncanny accuracy. AI's impact on the automobile industry has been nothing short of revolutionary, turbocharging economic growth, particularly in Intelligent Transportation Systems. 

Transportation authorities are seeing a shift in how they run their operations due to AI advancements. The reliance on human brain power and drivers is taking a back seat for some companies, making way for a new era of automated vehicles, and AI-driven communication tech. The future is here people! 

Driverless cars, once the stuff of science fiction, are now cruising into reality. Take Waymo, which rolled out fully autonomous taxi rides to the public in 2020. The freight industry is also getting a high-tech makeover. Companies such as TuSimple are trailblazing in the world of autonomous trucks. While these trucks currently have a safety driver, ready to take control if needed, TuSimple had grand plans to go fully driverless. 

The emergence of driverless cars promises to revolutionize the car shipping industry in profound ways. Imagine a scenario where autonomous vehicles drive themselves to shipping points or destinations, potentially slashing costs linked to labor and logistics. This shift will likely spur the industry to develop new service models, specifically tailored to the unique needs of these self-driving vehicles, especially for covering distances beyond their autonomous capabilities. 

Alongside these changes, there will be a need for regulatory adaptation, as new laws and standards emerge to govern the transport of driverless vehicles. Safety protocols and liability considerations will also become more complex, demanding innovative solutions for securing these vehicles during transit. Furthermore, the ripple effects of autonomous technology might alter consumer behavior and vehicle ownership patterns, potentially reshaping the demand dynamics in car shipping. The rise of driverless cars, therefore, represents a pivotal turning point for the car shipping industry, bringing both challenges and opportunities for innovation and growth.

Sustainability Initiatives

In response to growing environmental concerns, the car shipping industry has been adopting more eco-friendly practices. This includes the use of cleaner fuel alternatives, such as biodiesel or electric-powered transport vehicles, which help reduce greenhouse gas emissions. 

Companies are also focusing on more efficient logistics planning, and optimizing routes to minimize fuel consumption and carbon footprints. 

At ShipLux, we've followed suit and have steered our operations toward more sustainability. We're mapping out the smartest routes, using top-notch logistics planning to make every journey as efficient as it can be, cutting down on fuel use and shrinking our carbon footprint one mile at a time. This isn't just about meeting regulations, it's about being responsible and answering the call of our customers who care deeply about the earth. At ShipLux, we believe that delivering your vehicle should leave the lightest footprint possible on our precious planet.

Global Supply Chain Challenges

We are living in unprecedented times. 

The auto shipping industry has faced significant challenges due to disruptions in the global supply chain, triggered by various global events, including economic fluctuations, geopolitical tensions, and the lingering effects of the COVID-19 pandemic. These disruptions have led to delays, increased shipping costs, and difficulties in maintaining a steady supply of vehicles and parts. 

To combat these unique challenges, we have had to pivot slightly by diversifying our supply chains, improving our management strategies, and creating more agile and flexible logistics solutions to mitigate these challenges.

The Future

As we navigate the ever-evolving landscape of vehicle shipping, several exciting and transformative trends are emerging on the horizon.

• Streamlined Supply Chains: The future is all about creating shorter, more resilient supply chains. This approach aims to minimize disruptions and complications, especially crucial as the industry pivots towards electric vehicles, which have different part requirements compared to traditional vehicles. Think of it as a leaner, meaner supply chain strategy, focusing on less risky or more robust routes and moving fewer car parts.
• Enhanced Visibility: Alright, picture a world where every detail of the supply chain is visible, and updated in real-time. That's the future of enhanced visibility in the automobile transport industry. It's like a high-tech surveillance system, seamlessly putting data together from suppliers and customers. This all-encompassing oversight will cover the full spectrum of the production and transport process, and alert for any deviations, incidents, or changes as they happen. This level of transparency is set to transform the way the automotive shipping industry operates, making it more responsive, efficient, and customer-focused. 
• Ability To Predict: The use of data and AI technology is set to continue making strides in the future.  This foresight will enable the design of alternative plans, ensuring that the transport of vehicles remains smooth and uninterrupted, even when unexpected challenges arise.

These upcoming trends in the automobile transport and automotive shipping industry are not just about innovation, they're all about revolutionizing the way we think about moving vehicles from point A to point B. It's an exciting time, with each trend paving the way for a more efficient, transparent, and customer-centric future in automotive transportation. 

Conclusion

The automotive shipment world is in for a high-speed adaptation to a rapidly changing landscape. It's a race against time to stay ahead of the curve while navigating the twists and turns.

Yet, amidst these challenges, there's an undeniable buzz of excitement about the future of auto transport. The industry is on a fast track to remarkable progress through fostering collaboration, exchanging knowledge, and integrating the supply chain. Despite all the changes to come, ShipLux will always be your steady, trustworthy shipping company that will maintain our customer-forward, results-driven, and professional, friendly service.