India E-commerce Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2022-2027)

The Indian E-commerce Logistics Market is segmented by Service (Transportation, Warehousing and Inventory Management, and Value-added Services (Labeling, Packaging, etc.)), By Business (B2B and B2C), Destination (Domestic and International/Cross-border), By 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 forecast in value (USD Billion) for all the above segments.

Market Snapshot

Indian Ecommerce Logistics Market
Study Period: 2018-2027
Base Year: 2021
CAGR: >8 %

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Market Overview

The India E-commerce Logistics Market is expected to grow at a CAGR of about 8% during the forecast period of 2022-2027.

During the first wave of COVID-19, many retailers were shutting down their stores as their revenue got 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 with 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 gone up, the retailers are facilitating the order deliveries with logistics companies to comfort companies and retailers.

India’s retail market is expected to grow at a CAGR of 10% with US 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. Indian retail market occupies 10% of the country’s Gross Domestic Product (GDP) and around 8% of the employment. India is the world’s fifth-largest global destination in the retail space, leading to several new players' entry. In the next five years, online stores are expected to grow drastically as equal to physical stores.

Since the online retailers are more dependent on 3pl service providers, it is expected to positively influence the Indian e-Commerce logistics sector.

Scope of the Report

The term "E-commerce logistics" refers to the transportation, warehousing, and distribution services provided to an online retailer by the logistics company. The Indian E-Commerce Logistics Market is segmented By Service (Transportation, Warehousing and Inventory Management, and Value-added Services (Labeling, Packaging, etc.)), By Business (B2B and B2C), By Destination (Domestic and International/Cross-border), By 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 forecast in value (USD Billion) for all the above segments. The impact of COVID-19 will also be covered in the report.

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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Key Market Trends

Growth in e-Commerce Sales is Driving the Growth of the Market

The Indian E-commerce industry is growing predominantly and is expected to cross the US to become the second-largest E-commerce market in the world by 2034 as per India Brand Equity Foundation. India's e-commerce sector is expected to reach US 197 billion by 2027 from US 66.76 billion in 2021, growing at an 18.4% CAGR.

The e-commerce business helps the sellers to sell on a global scale, and market the business using marketing tools that helps to create, execute, and analyze campaign's on Facebook and Google. The sellers can use a single dashboard to manage orders, shipping, and payments which is highly flexible. The improvement of consumer experiences in eCommerce stores is evident through the same-day delivery process and flexible options. Due to these efficiencies, there is a continuous growth in e-commerce sales across the existing and upcoming years.

The number of players entering the e-commerce sector is gradually increasing due to the expectation of increased penetration on the internet and smartphone users. The online retailers are partnering with third-party logistics (3PL) providers to manage issues related to delivery, such as inventory, packaging, shipping, warehousing, and tracking. This is directly contributing to the revenue of the logistics sector.

IELM1

Increase in Number of Internet Users in India

The number of internet users is expected to touch 1,232.33 million users by 2027 as per statista. It is estimated to increase in both urban as well as in rural regions, indicating dynamic growth in access to the internet. India is the second largest online market in the world, ranking only behind china according to a report by the Internet and Mobile Association of India (IAMAI). Due to the increase in mobile connectivity, growth in purchasing behavior of women, and penetration in rural areas, the number of users has increased gradually.

Digital India program has driven the number of internet connections in 2021 to 830 million as per the data from India Brand Equity Foundation. Out of the total internet connections, 55% of connections were in urban areas, of which 97%of connections were wireless. India’s overall smartphone market grew by 7% in 2021. The number of smartphone users in India is expected to reach 887.4 million by 2030 which clearly shows the increase in the number of users. India has the highest data consumption rate worldwide at 14.1 GB of data per person a month.

IELM2

Competitive Landscape

The competitive landscape of the Indian e-commerce logistics market is observed to be fragmented, as the demand for logistics services is growing rapidly across the region, companies are becoming more competitive to capture the huge opportunity. The policy support from the Indian government has allowed 100% FDI in B2B e-commerce and the recent rise in digital literacy has led to the new international players setting up their base in India. This has in turn led the international logistics players to make strategic investments by establishing a regional logistics network, such as opening new distribution centers, smart warehouses. Some of the leading players include FedEx Corporation, DHL, Aramex, etc.

Recent Development

June 2022: Delhivery (an Indian logistics and supply chain company) has guaranteed same-day delivery (SDD) service in 15 cities and is seeking to help brands win customer loyalty. Delhivery has partnered with brands and identified fast-moving SKUs and keeps them in the warehouses closer to end customers. When the customer places the order for the same, then Delhivery's technology will show the fast-moving SKUs available for the same-day delivery.

July 2022:Panattoni (a global player in industrial and logistics real estate development) has decided to invest US 200 million in India to develop four industrial and logistics parks across major cities like Delhi, Mumbai, Chennai, Hyderabad, Bengaluru, and Pune. The company is in discussion with land owners to purchase around 250 acres of land for the development of four industrial and warehousing in an integrated park.

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

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Current Market Scenario

    3. 4.3 Technological Trends in the Industry

    4. 4.4 Government Initiatives and Regulations

    5. 4.5 Insights on the Ecommerce

    6. 4.6 Value Chain / Supply Chain Analysis

    7. 4.7 Demand and Supply Analysis

    8. 4.8 Impact of Covid-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restraints

    3. 5.3 Opportunities

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Threat of New Entrants

      2. 5.4.2 Bargaining Power of Buyers/Consumers

      3. 5.4.3 Bargaining Power of Suppliers

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Service

      1. 6.1.1 Transportation

      2. 6.1.2 Warehousing and Inventory Management

      3. 6.1.3 Value added services (Labeling, Packaging )

    2. 6.2 By Business

      1. 6.2.1 By B2B

      2. 6.2.2 By B2C

    3. 6.3 By Destination

      1. 6.3.1 Domestic

      2. 6.3.2 International/cross border

    4. 6.4 By Product

      1. 6.4.1 Fashion and Appareal

      2. 6.4.2 Consumer Electronics

      3. 6.4.3 Home Appliances

      4. 6.4.4 Furniture

      5. 6.4.5 Beauty and Personal care products

      6. 6.4.6 Other products (Toys, Food Products etc)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 FedEx Corporation

      2. 7.2.2 Delhivery Pvt Ltd

      3. 7.2.3 Ekart Logistics

      4. 7.2.4 Blue Dart Express Ltd

      5. 7.2.5 Shadowfax

      6. 7.2.6 Xpress Bees

      7. 7.2.7 DTDC

      8. 7.2.8 Ecom Express Logistics

      9. 7.2.9 Gati-Kintetsu Express Private Limited

      10. 7.2.10 DHL

      11. 7.2.11 Mahindra Logistics Ltd *

    3. *List Not Exhaustive
  8. 8. FUTURE OF THE MARKET

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Frequently Asked Questions

The India E-commerce Logistics Market market is studied from 2018 - 2027.

The India E-commerce Logistics Market is growing at a CAGR of >8% over the next 5 years.

Delhivery, FedEx, Ekart, DHL, Gati are the major companies operating in India E-commerce Logistics Market .

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