Publishing: October 2021 | Report Code: AT11952 | Available Format: PDF
India Retail Logistics Market Overview
The Indian retail logistics market is expected to exhibit significant growth during forecast period (2020–2030), owing to the existence of a massive consumer base in the country, coupled with the shift in consumption pattern of the Indian people. Moreover, with the growing disposable income, coupled with the increasing purchasing power of the consumers, is further expected to drive the demand for retail logistics services in India.
The Indian retail logistics market is categorized into online and offline, based on medium. Between the two, the online category is expected to witness faster growth during the forecast period. This can be attributed to the growing e-commerce industry, coupled with the increasing usage of smartphones, and rapid internet penetration in the country, as well as greater convenience attached to online retailing.
The Indian retail logistics market is classified into roadway, airway, and waterway, on the basis of transportation mode. Among these, the roadway category dominated the market during the historical period (2014–2019). This is due to the fact that majority of logistics activities in India are carried out through roadway mode, driven by massive inflow of investment in the Indian freight trucking industry. In 2018, the various freight trucking start-ups cumulatively received over $140 million, which heavily contributes to the growth of the market in the roadway category.
The Indian retail logistics market is categorized into tier-1, tier-2, and tier-3, based on city. It is observed that tier-1 cities of the country, such as Mumbai, Delhi, Bangalore, Hyderabad, Kolkata, and Chennai, are witnessing the highest demand for retail logistics services. This is attributed to the existence of large consumer base in these cities, coupled with increasing purchasing power, as compared to those who are residing in tier-2 and tier-3 cities.
India Retail Logistics Market Dynamics
One of the recent trends observed in the Indian retail logistics market is the increasing adoption of digital freight brokerage in logistics services. The digital freight brokerage services enable on-demand delivery of goods, as and when required. Moreover, these services ensure real-time tracking of the goods transported, which offers greater security and lowers risk of loss in transit. Furthermore, logistics companies are opting for these services at the times of sudden surge in demand and not on a contractual basis. This enables the companies to optimise their logistics operation, thereby making it a cost-effective alternative.
One of the major drivers for the Indian retail logistics market is the massive growth in the e-commerce industry. In recent years, the e-commerce industry has witnessed tremendous growth in India, pertaining to multiple aspects, such as growing urbanization and increasing disposable income of the people, coupled with changing consumption pattern of Indian customers. Moreover, the customers are now demanding prompt delivery of essential goods at their doorstep, which further propels the need to develop efficient logistics services to meet such demand. At present, the Indian online retail market is valued around $20 billion, comprising over 80–100 million online shoppers, and this number is expected to rise more rapidly in coming years. Thus, the growth in the online retail industry will lead to the growth of the adjacent retail logistics market.
India Retail Logistics Market Competitive Landscape
Some of the major players operating in the Indian retail logistics market are First Flight Couriers Ltd., FedEx Corp., DHL International GmbH, Blue Dart Express Ltd., Transport Corporation of India Ltd., All Cargo Logistics Ltd., and Gati Ltd.
Indian Retails Logistics Market Size Breakdown by Segment
The Indian Retail Logistics Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Medium
Based on Transportation Mode
Based on Goods Type
Based on City
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