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India E-commerce Logistics Market Size (2024 - 2029)

The India E-commerce Logistics Market is projected to experience significant growth over the forecast period, driven by the increasing online penetration of retail and the rising demand for efficient delivery services. As retailers adapt to changing consumer preferences, particularly in the wake of the COVID-19 pandemic, the reliance on logistics companies has intensified, facilitating smoother order deliveries. This shift is expected to positively impact the market's scale, as online retail continues to expand and compete with traditional physical stores. The growing dependence on third-party logistics providers is anticipated to further bolster the market's expansion.

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Market Size of India E-commerce Logistics Industry

India E-commerce Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 3.94 Billion
Market Size (2029) USD 6.95 Billion
CAGR (2024 - 2029) 12.18 %
Market Concentration Low

Major Players

India E-commerce Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

India E-commerce Logistics Market Analysis

The India E-commerce Logistics Market size is estimated at USD 3.94 billion in 2024, and is expected to reach USD 6.95 billion by 2029, growing at a CAGR of 12.18% during the forecast period (2024-2029).

During the first wave of COVID-19, many retailers shut down their stores as their revenue was hit instantly. However, it started to adapt gradually. As per the India Brand Equity Foundation, an Indian government export promotion agency, online penetration of retail is expected to reach 10.7% by 2024 compared to 4.7% in 2019, due to which many retailers started working on click-and-collect services and started partnering with logistics companies to keep their business moving forward. As the demand for door deliveries has increased, retailers are facilitating order deliveries with logistics companies to comfort companies and retailers.

India’s retail market is expected to witness an annual growth rate of 10% with USD 1.6 trillion by 2026, as per the Federation of Indian Chambers of Commerce & Industry (FICCI), a non-governmental trade association and advocacy group based in India. The Indian retail market accounts for 10% of the country’s gross domestic product (GDP) and around 8% of employment. India is the world’s fifth-largest global destination in retail, leading to several new players' entries. In the next five years, online stores are expected to grow drastically and become equal to physical stores.

Since online retailers depend more on 3PL service providers, it is expected to influence the Indian e-commerce logistics sector positively.

India E-commerce Logistics Industry Segmentation

E-commerce logistics refers to the transportation, warehousing, and distribution services the logistics company provides to an online retailer.

The Indian e-commerce logistics market is segmented by service (transportation, warehousing, inventory management, and value-added services (labeling, packaging, etc.)), business (B2B and B2C), destination (domestic and international/cross-border), and product (fashion and apparel, consumer electronics, home appliances, furniture, beauty and personal care products, and other products (toys, food products, etc.)). The report offers market size and forecasts in value (USD) for all the above segments.

By Service
Transportation
Warehousing and Inventory Management
Value-added Services (Labeling, Packaging )
By Business
By B2B
By B2C
By Destination
Domestic
International/Cross Border
By Product
Fashion and Appareal
Consumer Electronics
Home Appliances
Furniture
Beauty and Personal Care Products
Other Products (Toys, Food Products, Etc.)
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India E-commerce Logistics Market Size Summary

The Indian e-commerce logistics market is poised for significant growth, driven by the increasing penetration of online retail and the rising demand for efficient delivery services. As retailers adapt to the shift towards online shopping, partnerships with logistics companies have become crucial to maintaining business continuity and meeting consumer expectations for door-to-door delivery. The market is experiencing a surge in demand for third-party logistics (3PL) providers, which are essential for managing the complexities of inventory, packaging, and shipping. This trend is further supported by the growing number of internet and smartphone users in India, which is expanding the customer base for e-commerce businesses. The Digital India initiative and the rise in digital literacy are facilitating this growth, attracting both domestic and international players to invest in the logistics infrastructure.

The competitive landscape of the Indian e-commerce logistics market is characterized by fragmentation, with numerous players vying for market share. The government's policy support, including 100% foreign direct investment in B2B e-commerce, has encouraged international logistics companies to establish a presence in India. This has led to strategic investments in regional logistics networks, such as the development of smart warehouses and distribution centers. Companies like Delhivery and Ekart are enhancing their service offerings to cater to small and medium enterprises, as well as direct-to-consumer brands, by providing integrated shipping solutions and expanded transportation options. These developments underscore the dynamic nature of the market and the ongoing efforts to meet the evolving needs of e-commerce businesses in India.

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India E-commerce Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Technological Trends in the Industry

    3. 1.3 Government Initiatives and Regulations

    4. 1.4 Insights into the E-commerce

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Demand and Supply Analysis

    7. 1.7 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing and Inventory Management

      3. 2.1.3 Value-added Services (Labeling, Packaging )

    2. 2.2 By Business

      1. 2.2.1 By B2B

      2. 2.2.2 By B2C

    3. 2.3 By Destination

      1. 2.3.1 Domestic

      2. 2.3.2 International/Cross Border

    4. 2.4 By Product

      1. 2.4.1 Fashion and Appareal

      2. 2.4.2 Consumer Electronics

      3. 2.4.3 Home Appliances

      4. 2.4.4 Furniture

      5. 2.4.5 Beauty and Personal Care Products

      6. 2.4.6 Other Products (Toys, Food Products, Etc.)

India E-commerce Logistics Market Size FAQs

The India E-commerce Logistics Market size is expected to reach USD 3.94 billion in 2024 and grow at a CAGR of 12.18% to reach USD 6.95 billion by 2029.

In 2024, the India E-commerce Logistics Market size is expected to reach USD 3.94 billion.

India E-commerce Logistics Market Report Snapshots

India E-Commerce Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)