3PL Logistics in India Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers 3PL Service Providers in India and is segmented by Type (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution), and End-Users.

3PL in India Market Size

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India 3PL Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 40.03 Billion
Market Size (2029) USD 56.88 Billion
CAGR (2024 - 2029) 7.28 %
Market Concentration Low

Major Players

India 3PL Market Major Players

*Disclaimer: Major Players sorted in no particular order

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3PL in India Market Analysis

The India 3PL Market size is estimated at USD 40.03 billion in 2024, and is expected to reach USD 56.88 billion by 2029, growing at a CAGR of 7.28% during the forecast period (2024-2029).

The market is expected to be driven by the growth in manufacturing, FMCG, retail and e-commerce sectors. The Indian companies are demanding new logistics capabilities and complex solutions from the 3PL service providers to help them in the successful management of supply chain processes, bring down conventional logistics costs and handle more complicated tasks.

The key segments include road, rail, warehousing, cold chain, coastal transportation, container freight stations and inland container depots (CFS/ ICD). Development of the infrastructures like dedicated freight corridors, free trade warehousing zones, logistics parks and container freight stations are expected to improve the efficiency of the Indian 3PL market. The Indian logistics industry is associated with a relatively high cost of transportation and storage. A significant proportion of the higher cost can be attributed to the absence of an efficient intermodal and multimodal transport systems, poor road infrastructure leading to lowering of the maximum distance that can be covered by any commercial vehicle and toll on the highways. Further, higher warehousing costs are driven by a shortage of warehousing capacity in India, non-standardization of warehouses in terms of IT application, etc. 

The Government of India has set the target to bring down the current 14% logistics cost of India's GDP to 9% by 2022 and has requested the Ministries of Railways, Transport, Shipping and Aviation to work in tandem to reach the aforementioned goal.

3PL in India Market Trends

This section covers the major market trends shaping the India 3PL Market according to our research experts:

Developments in the Healthcare Sector

With the growing senior population, increasing healthcare awareness, and launch of new products in the market, the global sales of prescription drugs is growing rapidly. Drug manufacturers are continuously introducing specific medicines for treating minor conditions which increases their sales significantly. The growth in pharmaceutical sales will fuel the demand for healthcare logistics in India during the forecast period of 2020-2025.

Among recent updates, Kool-ex, a specialist in pharmaceutical cold chain solutions is focusing on a significant expansion splurge with a planned investment of more than Rs 300 crore. Backed by the growing demand for cold chain logistics in the pharma industry, the company is planning to double its fleet to 800 reefer trucks by the year 2021 investing Rs 140 crore. It is also investing an amount of Rs 90 crore in a 25,000-pallet capacity cold storage warehouse for pharmaceutical products near Pune. The company, in 2019 also acquired 200 completely built reefer trucks from Tata Motors, increasing its fleet size to 400 and becoming the largest player in India in pharmaceutical cold chain logistics.

Expanding its dedicated cold chain facilities in India, the world’s largest container carrier, Maersk, in May 2019, handled an export consignment of butter from Bulandshahr, Uttar Pradesh, to Turkey. It is transforming itself into an integrated logistics service provider with end-to-end transportation assistances parallel to those provided by players like DHL, or FedEx in the express parcel sector. This move by the company has opened up a niche cargo category, encouraging the shipping of a range of commodities within the reefer market.

In October 2019, CEVA Logistics announced the launch of innovative and expert installation service for large-scale medical equipment using its dedicated team of engineers and technicians in India. The company’s expert team will be handling the unpacking, installing and setting up the equipment like MRI Scanners, Cath Labs, Digital Radiography machines and CT Scanners on behalf of a number of global manufacturers.

India 3PL Market : Growth in Population above 65 years: in %, India, 2008-2018

Government Policies Aiding the Developments in Logistics Sector

The government has echoed its firm commitment to modernizing the functionalities of Indian logistics with a key focus on infrastructure development. With a view to increase the efficiencies of the supply chain and enhance the connectivity to support logistics players to reach the under-explored markets in the country, key infrastructure development projects have been rolled out.

Measures and policy interventions like Goods and Services Tax, (GST), relaxed FDI regulations and granting of infra status has boosted the core competencies of the Indian logistics industry.

GST was a game-changer and has laid the foundation for the logistics companies, which are currently forced to set up small warehouses across multiple cities, to set up large multi-modal logistics parks along with industrial centres which can function as freight and distribution hubs.

The maritime industry is a vital element of a growing economy like India. SAGAR (Security and Growth for All in the Region) and Sagarmala are the two principal policies by the GoI, aimed toward boosting the domestic maritime industry while at the same time engaging in maritime outreach with the other coasts of the Indian Ocean Region.

Sagarmala is a determined national initiative aimed at bringing change in India’s logistics performance by cracking the full potential of India’s coastline and waterways.

India 3PL Market : FDI Inflow Distribution: in billion INR, by sector, India, 2019

3PL in India Industry Overview

The market is relatively fragmented with a large number of local and international players, including DHL Supply Chain, Future Supply Chain and All Cargo Logistics Limited as its key players. India is evolving to be an emerging market in the warehousing sector attracting significant investments in the past 2 years from global and private equity players.

In September 2019, the French company FM Logistics announced the investment of USD 30 million for the development of a 31-acre multi-client logistics facility in Jhajjar, Haryana. The warehouse is expected to have a storage capacity of 1,00,000 pallet positions and a dedicated area for co-packing and other value-added services.

In February 2020, Groupe ADP announced the purchase of 49% stake in GMR Airports - a unit of India's GMR Infrastructure (GIL), for an amount of Rs 107.8 billion.

DP World and National Investment Infrastructure Fund (NIIF) invested an amount of USD 400 million to acquire Continental Warehousing Corp (Nhava Seva), one of the largest companies in the logistics sector in India.

3PL in India Market Leaders

  1. DHL International GmbH.

  2. Mahindra Logistics

  3. All Cargo Logistics Limited

  4. Kuehne + Nagel

  5. TVS Logistics Services Limited

*Disclaimer: Major Players sorted in no particular order

India 3PL Market Concentration
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3PL in India Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain / Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 General Trends in Warehousing Market

    6. 4.6 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.

    7. 4.7 Insights on Ecommerce Business

    8. 4.8 Technological Developments in the Logistics Sector

    9. 4.9 Industry Attractiveness - Porter's Five Forces Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End-User

      1. 5.2.1 Automobile

      2. 5.2.2 Chemicals

      3. 5.2.3 Construction

      4. 5.2.4 Consumer and Retail

      5. 5.2.5 Energy

      6. 5.2.6 Manufacturing

      7. 5.2.7 Life Sciences and Healthcare

      8. 5.2.8 Technology

      9. 5.2.9 Others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 All Cargo Logistics Limited

      2. 6.2.2 DHLSupply Chain

      3. 6.2.3 Future Supply Chain (FSC)

      4. 6.2.4 Gati Litmited

      5. 6.2.5 GS Logistics

      6. 6.2.6 Kuehne Nagel Private Limited

      7. 6.2.7 Mahindra Logistics

      8. 6.2.8 Nitco Logistics

      9. 6.2.9 Schenker India

      10. 6.2.10 TVS Supply Chain Solutions

      11. 6.2.11 UPS*

    3. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

    1. 7.1 Recent Mergers and Acquisitions

  8. 8. FUTURE OF INDIA 3PL MARKET

  9. 9. DISCLAIMER

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3PL in India Industry Segmentation

A comprehensive background analysis of the India 3PL Market, covering the current market trends, restraints, technological updates and detailed information on various segments and competitive landscape of the industry.

By Services
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End-User
Automobile
Chemicals
Construction
Consumer and Retail
Energy
Manufacturing
Life Sciences and Healthcare
Technology
Others
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3PL in India Market Research FAQs

The India 3PL Market size is expected to reach USD 40.03 billion in 2024 and grow at a CAGR of 7.28% to reach USD 56.88 billion by 2029.

In 2024, the India 3PL Market size is expected to reach USD 40.03 billion.

DHL International GmbH., Mahindra Logistics, All Cargo Logistics Limited, Kuehne + Nagel and TVS Logistics Services Limited are the major companies operating in the India 3PL Market.

In 2023, the India 3PL Market size was estimated at USD 37.31 billion. The report covers the India 3PL Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

3PL in India Industry Report

Statistics for the 2024 3PL in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. 3PL in India analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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3PL Logistics in India Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)