Market Size of India 3PL Industry
| 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
*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.
