India Third-Party Logistics (3PL) Market Report and Forecast 2024-2032

India Third-Party Logistics (3PL) Market Outlook

The India third-party logistics (3PL) market size reached about USD 36.1 billion in 2023. The market is projected to grow at a CAGR of 7.3% between 2024 and 2032, reaching a value of around USD 68.2 billion by 2032.

Key Takeaways

• The e-commerce sector in India is anticipated to grow 5 times to USD 300 billion by 2030.

• Government initiatives such as the National Infrastructure Pipeline, Sagarmala, and National Monetization Pipeline are expected to give a boost to the 3PL market, supporting last-mile delivery across the country.

• By 2030, it is estimated that India's business-to-business (B2B) online marketplace will reach USD 200 billion.

India is witnessing infrastructure development such as dedicated freight corridors, free trade warehousing zones, logistics parks, and container freight stations, further accelerating the India third-party logistics (3PL) market growth. The Bharatmala project launched in 2017, aims to construct 83,677 km of highways by 2024.

The growth of the India third-party logistics (3PL) market is driven by the growing penetration of e-commerce platforms such as Meesho, which constitutes to more than 40% of the market share. Meesho majorly collaborates with logistic providers such as Delhivery, Xpressbees and Ecom Express, which are known to have advanced analytical services.  Furthermore, advancements in technology and infrastructure such as e-way bills, fast-tags, e-invoicing, and GPS-based toll collection, are anticipated to contribute to the growth of the market.

In H1 2021, the leasing of industrial and warehousing areas crossed 10.1 million sq ft in the metro cities of Bengaluru (Karnataka), Chennai (Tamil Nadu), Delhi NCR, Mumbai (Maharashtra), and Pune (Maharashtra). This rise in demand has further contributed to the growth of the 3PL sector in the country.

In the logistics sector, goods are transported using various transport methods such as road, rail, air and water. In India, a significant share of the goods is transported by road. By 2030, the number of eTailing shipments in India delivered by 3PL is anticipated to be 13-17 billion, representing an increase of about 6-8 times compared to 2022 levels.

Market Segmentation

India Third-Party Logistics (3PL) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Dedicated Contract Carriage (DCC)

• Domestic Transportation Management (DTM)

• International Transportation Management (ITM)

• Warehousing and Distribution

• Value Added Logistic Services (VALs)

Market Breakup by Transport

• Railways

• Roadways

• Waterways

• Airways

Market Breakup by End Use

• Retail

• Healthcare

• Manufacturing

• Automotive

• Others

Market Breakup by Region

• North India

• East and Central India

• West India

• South India

Competitive Landscape

Companies are increasingly focusing on technological integration such as artificial intelligence (AI), machine learning, and robotics for managing supply chains and the logistics sector, increasing business efficiency and effectiveness.

• FedEx Corp

• Deutsche Post AG (DHL)

• Schenker AG

• Kuehne + Nagel International AG

• Mahindra Logistics Ltd

• Nippon Express Holdings Inc.

• Toll Holdings Limited

• Kintetsu World Express, Inc

• CJ Logistics Corporation

• Allcargo Logistics Ltd

• Others

Key Highlights of the Report