India Logistics Market Assessment, By Function [Transportation, Warehousing, Value Added Services, Others], By Type [Organized, Unorganized], Business Model [First Party Logistics (D2C), Second Party Logistics, Third Party Logistics, Fourth Party Logistics], By Transportation Medium [Railways, Roadways, Airways, Waterways], By Distance [Long Haul, Regional Haul, Urban Haul], By End-user [Healthcare & Pharmaceuticals, Food & Beverage, Consumer, Retail, Agriculture, E-Commerce, Military and Defense, Others], By Product [Dry Bulk, Wet Bulk, Refrigerated, Containerized, Break Bulk], By Region, Opportunities, and Forecast, FY2018-FY2032F

India Organized Logistics Market is anticipated to reach at USD 60.74 billion in FY2032 growing at a CAGR of 12.18% during the forecast period in FY2025-FY2032 and was valued at USD 24.22 billion in FY2024. India has been experiencing a major boom in its retail sector owing to an increased buying capacity of the middle segment of the population which has opened wider opportunities for large multinationals in the retail industry to plan and set up operations in India. Moreover, the demand for fast moving consumer goods and electronic products has also been growing at a faster pace. Such factors are propelling the growth of logistics market in the country. Innovations in technology including the use of AI, machine learning and real time data analysis also tends to surge the market to newer heights.

The government has implemented many regulatory reforms, including the adoption of e-way bills, fast-tags, e-invoicing, and GPS-based toll collection, which are all contributing to the evolution of the Indian logistics market. The government is making efforts to reduce the logistics share of the country’s GDP from 14% to 9% by introducing National Logistics Policy which aims to establish a single-window e-logistics market.

Network Expansion Drives the India Logistics Market Demand

Network expansion is an important driver for India logistics market growth in the forecast period. With the significant growth of e-commerce and consumer requirement for speedier deliveries, logistics companies are aiming on expanding their networks to reach even the most distant locations. Improved connectivity confirms that goods can be transported effectively across the country, addressing the requirements of businesses and consumers alike. In addition, the investments in infrastructure development including a construction of new highways, port facilities, and others are offering the expansion to companies and market growth opportunities to the giant market players. In addition, the introduction of logistics parks and warehousing hubs in strategic locations is streamlining supply chain operations, further propelling market demand. Furthermore, companies in the market are expanding their network by announcing their partnership with delivery partners to address the growing demand from a distant location.

For instance, in May 2024, Delhivery Limited announced partnership with SUGAR Cosmetics to offer extensive networks, technology-driven solutions and express Part Truck Load services which further ensure faster delivery of B2B consignments, allowing SUGAR Cosmetics to better serve their retail partners.

India Logistics Sector Driven by Growing E-commerce Segment & 3PL Companies.

Third party integration is in high demand due to the booming ecommerce market and growing customer centricity. With end-to-end optimization, the use of technology, and value-added services, the role of warehouse and logistics is expanding beyond the conventional scope. As a result, 3PLs are focusing more for managing inventory, optimising fulfilment, complete procurement, distribution, and data management.

Technological Development for End-to-End Transformation

For shipment tracking, almost 56% of Indian logistics organizations use map-based solutions. The logistics sector's top priorities are the Internet of Things (IoT), automation, electric vehicles (EVs), and location technology.

• SKU management using the Internet of Things (IoT); inventory tracking via augmented reality (AR) and drones; and data encryption via the blockchain.
• Big data solutions enable real-time data analysis to forecast changes in inventory volume and logistics client demands.

Use of artificial intelligence in logistics is becoming more popular  due to rising number of AI-based inventions coupled with growing cost of manual labor.

Government Schemes

The following are some of the policies the government has initiated to support the logistics industry:

Multi-Modal Logistics Parks (MMLPs) Policy

The Government of India has implemented the Multi-Modal Logistics Parks (MMLPs) strategy as a major initiative to develop the nation's logistics industry. To encourage domestic and international trade, this project will reduce freight costs, lower vehicle pollution and congestion, and reduce warehouse costs. The government is also putting a lot of effort into increasing the market's competitiveness, lowering obstacles and freight costs, and advancing technology. The country's freight and logistics industry are growing due to the manufacturing, retail, and agricultural sectors.

National Logistics Policy

The policy emphasises improving skills, competitiveness, and employment for MSMEs and intends to cut the cost of logistics.   The programme considerably increases exports and ensure that small firms and the individuals who work there make money. All of this will boost the economy in several ways, including creation of jobs and the intercity, interstate, and international trade of goods. Such regulatory change is expected to bring India on a path for becoming a logistical hub and a global manufacturing powerhouse.

Impact of COVID-19 on the India Logistics Market

The COVID-19 has had a direct impact on logistics companies, which are involved in the flow, storage, and transfer of commodities. Therefore, supply chain disruptions by the pandemic affected the sector's competitiveness, economic development, and employment opportunities.

 In the post COVID-19 environment, to use the same inventory and support both online and physical delivery, companies are attempting to manage the inventory in the field much more efficiently and drive optimization through omni-channel distribution models. Multi model logistics is becoming one of the major focus points in India and it is reducing transportation cost through water, air, road and two-wheeler modes.

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Impact of Russia-Ukraine War on India Logistics Market

Oil and gas prices rose because of the conflict between Russia and Ukraine. Due to the supply chain disruptions, which leads to expensive shipping costs, fewer available containers, and less warehouse space. The invasion negatively affected import of oil and gas prices in India due to increased surcharged applicable on Russian Oil & Gas export.

 Report Scope

“India Logistics Market Overview, FY2018-FY2032F,” a comprehensive report by Markets and Data, provides an analytical and statistical guide of the size, share, growth trends, opportunities, and forecasts in FY2025-FY2032 for India logistics market. Additionally, the research scope profiles the top players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.

Report Attribute	Details
Base Year for Analysis	FY2024
Historical Period	FY2018-FY2023
Forecast Period	FY2025-FY2032
Market Size in FY2024	USD 24.22 billion
Projected Growth Rate	CAGR of 12.18% from FY2025-FY2032
Revenue Forecast in FY2032	USD 60.74 billion
Units	Revenue in USD and Volume in Units
Segments Covered	Function, Type, Business Model, Transportation Medium, Distance, End-user, Product
Regions Covered	East, West & Central, North, South
Key Companies Profiled	DHL Express (India) Pvt. Ltd., Allcargo Logistics Ltd., AVG Logistics Ltd., Mahindra Logistics Ltd., Tiger Logistics (India) Limited, Sanco Trans Ltd., FedEx Corporation, Desk to Desk Courier & Cargo (DTDC), BusyBees Logistics Solutions Pvt Ltd. (XpressBees), Dunzo Digital Private Limited, Bundl Technologies Ltd. (Parent company to Swiggy), Uber Technologies Inc.
Customization Scope	15% free report customization with purchase.
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

 

In this report, India Logistics Market has been segmented into following categories:

1. India Logistics Market, By Function
   • Transportation
   • Warehousing
   • Value Added Services
   • Others

• India Logistics Market, By Type
  • Organised
  • Unorganized
• India Logistics Market, By Business Model
  • One-Party Logistics (D2C)
  • Second Party Logistics
  • Third Party Logistics(3PL)
  • Fourth Party Logistics
• India Logistics Market, By Transportation Medium
  • Railways
  • Roadways
  • Airways
  • Waterways
• India Logistics Market, By Distance
  • Long Haul
  • Regional Haul
  • Urban Haul
• India Logistics Market, By End-user
  • Healthcare & Pharmaceuticals
  • Food and Beverage
  • Consumer
  • Retail
  • Agriculture
  • E-Commerce
  • Military and Defense
  • Others
• India Logistics Market, By Product
  • Dry Bulk
  • Wet Bulk
  • Refrigerated
  • Containerised
  • Break Bulk
• India Logistics Market, By Region
  • East
  • West & Central
  • North
  • South

Key Player Landscape and Outlook

Several key players in India are focusing on expansion of their facilities in order cater to the growing sectors including retail, life sciences, consumer, technology, e-commerce, engineering, and manufacturing and automotive.

For example, in September 2022, DHL Express (India) Pvt. Ltd announced that it will be expanding its warehousing space by 12 million square feet and reach a total capacity of about 22 million square feet in next three years. These warehouses will be empowered with enhanced digital technology solutions such as Assisted Picking Robots, Indoor Robotic Transport, Intelligent Process Automation, Wearable Devices, Voice Picking, Inventory Management Robots and Algorithmic Optimizations.

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• How are the markets predicted to develop in the future and what factors will drive or inhibit growth?
• What is the business environment and regulatory landscape specific to the product/service?

Key Players Operating in India Logistics Market

• DHL Express (India) Pvt. Ltd.
• Allcargo Logistics Ltd.
• AVG Logistics Ltd.
• Mahindra Logistics Ltd.
• Tiger Logistics (India) Limited
• Sanco Trans Ltd.
• FedEx Corporation
• Desk to Desk Courier & Cargo (DTDC)
• BusyBees Logistics Solutions Pvt Ltd. (XpressBees)
• Dunzo Digital Private Limited
• Bundl Technologies Ltd. (Parent company to Swiggy)
• Uber Technologies Inc.

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