India Intra-city Logistics Market Size (2024 - 2029)

The market size of the Indian intra-city logistics sector, which includes last-mile delivery and is a significant part of the road transport industry, is on the rise. This growth is despite the challenges of the COVID-19 pandemic, which has actually spurred increased adoption of online services. Small and medium firms, which are still largely untapped in terms of online presence, present a significant opportunity for the logistics sector. Intra-city logistics providers are becoming increasingly important to these firms, with innovative technology playing a key role in meeting demand and supply needs efficiently.

Home Market Analysis Logistics Research Integrated Logistics Research Intra-city Logistics Research India Intra-city Logistics Market Market Size

Market Size of India Intra-city Logistics Industry

India Intra-city Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.00 %
Market Concentration Low

Major Players

India Intra-city Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order
setting-icon

Need a report that reflects how COVID-19 has impacted this market and its growth?

India Intra-city Logistics Market Analysis

The size of Indian intra-city logistics market is USD 1.48 billion in the current year and is expected to register a CAGR of more than 5% during the forecast period. Intra-city logistics providers typically deal with rapid and on-demand delivery requirements and are highly dedicated to assuring same-day deliveries. As a result, the entire chain of operations is subject to demand variability.

  • Further, the last-mile delivery sector in India is on an upward trend. Despite the country being under lockdown in 2020-2021, with only critical deliveries permitted, e-commerce shipments increased drastically in the country. It is estimated that intra-city logistics accounts for approximately 15-20% of the road transport industry.
  • The COVID-19 pandemic accelerated the widespread adoption of online services. Notably, small and medium firms, which form the backbone of the Indian economy, continue to have a minimal online presence.
  • It is believed that just 20% of small firms presently offer online services, leaving a largely untapped market and limitless opportunities for the logistics sector to flourish. Intra-city logistics providers are becoming critical for these small and medium-sized firms to cater to their customers' demands.
  • Orders may suddenly rise from one city area, necessitating swift identification and connection with an available delivery person. Innovative technology is the foundation of a system that efficiently meets demand and supply needs to provide flawless function, resource optimization, and positive unit economics.

India Intra-city Logistics Industry Segmentation

Intra-city logistics is not just about delivering parcels in 30 minutes. It is about solving the business challenges that companies face and building capabilities to seamlessly execute any sort of goods movement irrespective of their scale and size. The Indian intra-city logistics market is segmented by service (transportation, warehousing and distribution, and value-added services) and by city (Delhi, Bangalore, Mumbai, Hyderabad, Chennai, and Others). The report offers market size and forecasts for the Indian intra-city logistics market in value (USD billion) for all the above segments.

By Service
Transportation
Warehousing and Distribution
Value-added Services
By City
Delhi
Bangalore
Mumbai
Hyderabad
Chennai
Others

India Intra-city Logistics Market Size Summary

The Indian intra-city logistics market, which focuses on rapid and on-demand delivery services, is experiencing significant growth. This expansion is attributed to a rise in e-commerce shipments, despite the lockdown restrictions caused by the COVID-19 pandemic. The pandemic has further accelerated the adoption of online services, creating a largely untapped market for small and medium firms. The logistics sector plays a crucial role in helping these businesses meet customer demands, with innovative technology being key to efficiently balancing supply and demand needs. Emerging trends in the market include a growing demand for intra-city logistics from tier-2 and tier-3 cities, with smaller cities accounting for a larger share of e-commerce sales. The festive season has seen a surge in new customers from these cities, boosting the income of intra-city logistics startups. Additionally, the rise of Direct-to-Consumer (D2C) companies is driving demand for intra-city logistics. These businesses often rely on third-party logistics and fulfillment companies for effective order administration and last-mile delivery. The growing D2C sector is creating more opportunities within the intra-city logistics sector in line with changing customer preferences for shopping and delivery.

Explore More

India Intra-city Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

    2. 1.2 Restraints

    3. 1.3 Opportunities

    4. 1.4 Industry Attractiveness- Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing and Distribution

      3. 2.1.3 Value-added Services

    2. 2.2 By City

      1. 2.2.1 Delhi

      2. 2.2.2 Bangalore

      3. 2.2.3 Mumbai

      4. 2.2.4 Hyderabad

      5. 2.2.5 Chennai

      6. 2.2.6 Others

India Intra-city Logistics Market Size FAQs

The India Intra-city Logistics Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

FM Logistics India, Porter, Lets Transport, cityXfer and Shadowfax are the major companies operating in the India Intra-city Logistics Market.

India Intra-city Logistics Market Report Snapshots

India Intra-city Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)