India E-Commerce Logistics Market: Investment & Growth Opportunity Analysis, 2019-2028

The Indian e-commerce logistics market is anticipated to grow at a robust CAGR of over 24% during the forecast period of 2022-2028. India e-commerce logistics market is primarily driven by strong growth in the e-commerce retail market. Increasing internet penetration, a shift in consumer behavior towards the digital platform, and infrastructure growth are some of the key factors expected to drive the demand for the e-commerce logistics market during the forecast period. Moreover, continuous efforts of the Indian government and its digital transformation programs such as ‘Make in India’, the introduction of Goods and Services Tax (GST), improvement in infrastructure through the Sagarmala and Bharatmala initiatives, Dedicated Freight Corridors, E-way bill, and Dedicated Port Delivery are further anticipated to fuel the demand for India e-commerce logistics market.

Supportive government initiatives in favor of the e-commerce logistics market

In the Union Budget 2022-23, the Minister of Finance, Nirmala Sitharaman, emphasized the PM Gati Shakti National Master Plan as the foundation for the country’s long-term development and economic growth. The PM Gati Shakti National Master Plan aims to accelerate India’s logistical infrastructure in order to reduce operational time and costs. In India, logistics is still largely regarded as a traditional business that must be carried out in a specific manner. Furthermore, there are issues arising from a lack of infrastructure and an unorganized network, resulting in fragmented hubs and warehouses. Furthermore, because most logistics infrastructure remains concentrated in urban areas, the countryside is largely ignored. Therefore, the government is actively working on the infrastructure development of semi-urban and rural areas which will facilitate the e-commerce logistics market growth in the country.

The transportation service segment dominated the market

The Indian logistics industry is dominated by the transportation services segment in terms of value and is expected to remain dominant over the forecast period. The segmental growth is attributed to the rising exports, increased interstate movement of goods and passengers, and expanding FMCG industry, coupled with the rising disposable income. Numerous big and small logistics firms concentrate on last-mile delivery, and the role of transportation in the entire chain of e-commerce logistics procedures is becoming progressively important. The current emphasis of the Indian government on infrastructure and favorable attitude towards the Private-Public Partnership (PPP) model creates ample opportunities for private players in the e-commerce logistics industry.

Market Structure and Competitive Landscape

Key players in the market include Amazon Logistics, Ekart Logistics, Blue Dart Express Ltd., Delhivery Limited, DHL International GmbH, Ecom Express Limited, DTDC Express Ltd. Shadowfax Technologies Private Ltd, Xpressbees, Shiprocket, Holisol Logistics Pvt. Ltd. among others. The e-commerce logistics companies in India are currently focusing on expanding their reach in rural India and improving the time duration of delivery. Indian post has a vast reach and good connectivity in rural areas, which in turn, will drive the demand for the e-commerce logistics market. Some of the key developments in the market include –

• com Inc. is in initial talks to acquire more than 51% in logistics unicorn Ecom Express Ltd. for US$ 500-600 million. The e-commerce giant aims to build an in-house logistics division to catch up with its rivals.
• In December 2020, Amazon has invested over 11,400 crores (about US$ 1.5 billion) in India’s marketplace, payments, and wholesale business units during FY2019-20 to strengthen its position in the country’s emerging digital commerce market.

Key Market Segmentation

RationalStat has segmented the India e-commerce logistics market based on the mode, services, product, and region.

• By Mode
  • Air
  • Surface
• By Services
  • Transportation Services
  • Warehousing Services
  • Other Services
• By Product
  • Apparel Products
  • Electronics Products
  • Home Furnishing Products
  • Stationary
  • Baby Product
  • Personal Care Products
  • Others (Books, Automotive Products, etc.)
• By Region
  • North India
  • East India
  • West and Central India
  • South India

Research Methodology

RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.

RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:

• Defining the problem by understanding the type of market and data required by the client.
• Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
• Formulating a hypothesis to create market numbers, forecast, influencing factors, and their relevance.
• Evaluating and analyzing the data by referring to data sources utilized and leveraged.
• Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.

Secondary Sources

• Annual reports, company filings, investor presentations, product catalogs, and company documents
• Industry and market-related documents available in the public domain
• Paid database including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
• Whitepapers, research papers, and industry blogs.

Why Buy this Report?

The report is intended for e-commerce companies, transportation and logistics companies, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.

Frequently Asked Questions (FAQs)