India E-commerce Logistics Market Assessment, By Service Type [Transportation, Warehousing, Value-Added Services], By Operational Area [Domestic, International], By Delivery Type [Standard Delivery, Same-Day Delivery], By Category [Apparel and Lifestyle, Automotive, Engineering, FMCG and Consumer Electronics, Healthcare, Other], By End-user [Business-to-Business, Business-to-Consumer], By Region, Opportunities and Forecast, FY2018-FY2032F

India E-Commerce Logistics Market is projected to witness a CAGR of 24.44% during the forecast period 2025-2032, growing from USD 18.55 billion in 2024 to USD 106.67 billion in 2032.

The Indian e-commerce logistics market is increasing rapidly due to several important factors. With the penetration of smartphones and affordable Internet access, online purchases in urban and rural areas have increased significantly. Government initiatives such as Digital India and digital payment infrastructure improvements have further fueled this growth. A growing middle class coupled with changing consumer preferences for convenience and variety are driving demand for e-commerce services. Logistics suppliers use advanced technologies such as IA, IoT, and automation to optimize the supply chain process and provide faster and more effective distribution. The expansion of the latest kilometer distribution networks and innovative models such as hyperlocal services have become easier for logistics to access in remote areas. Major e-commerce players such as Amazon, Flipkart etc., are investing heavily in their logistics businesses to improve customer experience and reduce delivery times. The rise of direct-to-consumer brands is creating new opportunities in the logistics sector. Thanks to the foreseeable increase in retail penetration on the Internet and increasing confidence in digital platforms, India's electronic trade logistics market will experience regular growth, making it the most important component of the country's digital economy.

In May 2024, Delhivery Limited's AI-powered RTO Predictor significantly reduced the risk of return shipments for D2C brands, a major challenge for e-commerce businesses, especially with cash-on-delivery orders constituting over 60% of e-commerce transactions in India. The RTO Predictor assesses return risks by leveraging machine learning and data from over 2.5 billion deliveries, enabling over 4800 e-commerce companies to lower their logistics costs and improve margins. This solution, which can be integrated into various sales channels like Shopify and WooCommerce, enhances operational efficiency and customer satisfaction by predicting customer behavior and minimizing returns. The ability to reduce RTOs by up to 20% boosts the e-commerce logistics market's growth by ensuring smoother operations, cost savings, and higher conversion rates, which is especially important in a market driven by rising online shopping and logistics demands.

Increase Internet Penetration and Smartphone Usage Drive Market Growth

Increased internet penetration and widespread usage of smartphones drive the Indian e-commerce logistics market as it has brought millions of Indian online users, enabling them to shop from the e-commerce platform regardless of their location. Increased online consumers have led to a greater demand for logistics services to fill in orders in urban and rural areas. Increasing transaction volumes of e-commerce companies and their logistics providers because various products are readily available to the consumers at their fingertips. On the other hand, growing mobile-based apps for shopping and digital payments have streamlined the journey of the customer, encouraging them to purchase more frequently. With growing online shoppers, logistic providers are now expanding their outreach to diversified geographies, fueling market growth.

In October 2023, FedEx Corporation upgraded its FedEx Ship Manager by integrating automated e-commerce features for small businesses and merchants in India. The feature is already available in 44 countries. It provides an easy way to manage online shipments using Shopify, BigCommerce, WooCommerce, and PrestaShop. These upgrades to the software include automatic download of order information, automatic printing of labels, and update of tracking numbers for improved efficiency and saving time. FedEx enables SMEs to compete more effectively and grow within the e-commerce landscape through advanced digital tools and seamless shipping processes, thereby greatly contributing to the growth of India's e-commerce logistics market.

Last-Mile Delivery and Advanced Technologies Fueling the E-commerce Logistics Market Growth

The expansion of last-mile delivery network and the adoption of advanced technologies drives the growth of the Indian e-commerce logistics market. Last-mile delivery reaches goods to customers in urban and remote areas thus solving the logistical challenges in a geographically diverse country. Logistics companies are investing in robust delivery infrastructure such as hyperlocal services and regional warehouses to provide faster and more reliable service. At the same time adoption of technologies such as artificial intelligence, IoT and route optimization tools has improved efficiency in operations and reduced delivery time, increasing the satisfaction level for customers. Further, automation of sorting and tracking systems has smoothed supply chains to reduce errors and costs. In this regard, logistics providers were able to successfully manage the growing volumes in e-commerce in order to effectively support the functioning of the entire online retail ecosystem and expand market.

In June 2023, A.P. Moller – Maersk A/S introduced a revolutionary eCommerce fulfillment solution in India called "One Country, One Price," offering single-window access to the entire logistics ecosystem at a flat rate of approximately USD 1 per order. This warehousing service that integrates last-mile delivery and return management service caters specifically to small and medium-sized e-commerce businesses, eliminating supply chain complexity. Maersk offers the business unified pricing and comprehensive logistics support, focusing them on growth and efficiency so that the e-commerce logistics market is improved in India making it streamlined and more cost-effective for operations.

Warehousing Segment Dominates Market

The e-commerce logistics space in India has witnessed the dominance of warehousing, which involves efficient storage, order processing, and dispatch to be able to meet the escalating consumer demand. Strategically located warehouses, especially across tier-2 and tier-3 cities, help in easy and quick delivery across huge geography. E-commerce companies are using advanced technology like automation, robotics, as well as AI-driven inventory management systems to streamline their functioning, decreasing processing time as well as improving accuracy. This also arises due to D2C brands and ever-growing online orders, calling for more modern and scale-efficient warehousing solutions in India. Hence, the need is also placed with the segments constituting the Indian e-commerce logistics ecosystem.

In November 2023, Gati developed a state of the art surface transshipment center and distribution warehouse at Mayasandra, Hobli near Bengaluru. Spread over 3.5 lakh sq. ft. with a 1.5 lakh sq. ft. Grade A warehouse improves connectivity and saves transit time due to its proximity to NH 44 railway and international airport. It has 70 truck bays and moves more than 1,600 tonnes every day and services several sectors. This fifth super hub strengthens Gati’s logistics capabilities, supporting their goal to convert their entire fleet to alternative fuel vehicles by 2025 while promoting sustainability and operational efficiency.

Northern Region Dominates E-commerce Logistics Market Share

Northern region the biggest contributor as a whole has e-commerce in terms of market. Megacity, Delhi-NCR, etc., are established centers for major e-commerce corporations, as already infrastructures present and can easily connect each region. Growing internet penetration also in the whole of the city increases the percentage of online users that has positively triggered the business for online shops hence online shop requires higher delivery and logistics chain. North India has warehouses, fulfillment centers and last-mile delivery facilities in abundance, thus speeding up the processing and delivery of orders. The proximity to industrial zones and transport corridors adds to the efficiency of supply chain management. The Northern region is seeing high costs for consumers, especially for fashion, electronic and FMCG products, which makes it even stronger in the logistics market for electronic commerce.

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Future Market Scenario (FY2025 – FY2032F)

• Innovation in AI, robotics and real-time tracking will further streamline logistics operations enhancing efficiency and reducing costs.
• More adoption of eco-friendly practices including electric vehicles and sustainable packaging will be seen as consumer demand for environmentally responsible services increases.
• The rising demand for cross-border delivery would drive the growth of logistics providers to further internationalize their network as the trade volumes worldwide increase.
• Last-mile innovations, such as drone deliveries and autonomous vehicles will address urban congestion and rural accessibility in rural areas.

Report Scope

“India E-commerce Logistics Market Assessment, Opportunities and Forecast, FY2018-FY2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of India e-commerce logistics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	FY2024
Historical Period	FY2018-FY2023
Forecast Period	FY2025-FY2032
Projected Growth Rate	CAGR of 24.44% between FY2025 and FY2032
Revenue Forecast in 2032	USD 106.67 billion
Segments Covered	Service Type, Operational Area, Delivery Type, Category, End-user
Regions Covered	North, East, West and Central, South
Key Companies Profile	Delhivery Limited, Ecom Express Private Limited, Blue Dart Express Limited, DTDC Express Limited, XpressBees Solutions Private Limited, Fedex Corporation, Shadowfax Technologies Private Limited, TVS SUPPLY CHAIN SOLUTIONS LIMITED, Aramex India Private Limited, Mahindra Logistics Ltd.
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, India e-commerce logistics market has been segmented into the following categories: 

• By Service Type
  • Transportation
  • Warehousing
  • Value-Added Services
• By Operational Area
  • Domestic
  • International
• By Delivery Type
  • Standard Delivery
  • Same-Day Delivery
• By Category
  • Apparels and Lifestyle
  • Automotive
  • Engineering
  • FMCG and Consumer
  • Electronics
  • Healthcare
  • Other
• End-user
  • Business-to-Business
  • Business-to-Consumer
• By Region
  • North
  • East
  • West and Central
  • South

Key Players Landscape and Outlook

E-commerce companies are focusing on several strategic initiatives. They invest in advanced technologies such as artificial intelligence, machine training, and things Internet, optimizing the overall efficiency of route planning, reserves, and overall work. This reduces delivery times and operational costs, while improving accuracy and customer satisfaction. Logistics companies are also expanding their last-mile delivery networks, especially in underserved areas by implementing hyperlocal delivery models or using electric vehicles as an environmentally friendly and cost-effective solution. Additionally, many companies are expanding their warehousing capabilities by setting up automated distribution centers and warehouses strategically located across the country providing faster delivery to urban and rural customers. Partnerships with third-party service providers and technology solutions such as real-time tracking are also helping logistics companies offer more transparent and reliable services. To further improve customer experience, companies are integrating digital payment options and offering services like cash on delivery and easy returns these initiatives along with a focus on building a resilient supply chain, will enable logistics companies to maintain a strong presence in the competitive e-commerce space and adapt to the changing demands of Indian consumers.

In June 2024, Delhivery Limited partnered with Teamglobal Logistics to expand its cross-border services, providing Less than Container Load service to 120 countries and enabling inland Part Truckload services in India. This partnership integrates express and freight solutions with tech-enabled tracking, regulatory support, and customer servicing, helping businesses with seamless international trade. Delhivery’s extensive coverage and Teamglobal’s ocean freight expertise will enhance logistics solutions for importers and exporters, offering a streamlined and efficient shipping process for enterprise and SME customers across India.

Key Players Operating in India E-commerce Logistics Market are:

• Delhivery Limited
• Ecom Express Private Limited
• Blue Dart Express Limited
• DTDC Express Limited
• XpressBees Solutions Private Limited
• Fedex Corporation
• Shadowfax Technologies Private Limited
• TVS SUPPLY CHAIN SOLUTIONS LIMITED
• Aramex India Private Limited
• Mahindra Logistics Ltd.

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