How India Logistics Market Is Positioned?
Overview: India Logistics Market comprises of both organized and unorganized players which provide both logistics and warehousing services in the country. However, 90% of the market is unorganized and contribute a major chunk of the revenue in the market.
Due to high growth in manufacturing and industrial sector, players have begun turning to 3PL (Third Party Logistics). They have also been witnessed to adopt new technology. The country is reeling with a dip in industrial and manufacturing performance and is thus causing a growth to slow down. However, the government is investing in improving the transport infrastructure of the country through massive projects and by enacting major policy changes to help the logistics sector.
Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during FY14-FY19 primarily due to increasing manufacturing performance and infrastructure investment. The logistics sector is boosted by rising foreign trade and increase in the domestic manufacturing and consumption, which facilitates creation of demand of logistics services. The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. The other sectors include value added services, e-commerce deliveries and 3PL market.
India Logistics and Warehousing Market
By Service Mix: Freight forwarding segment has dominated the logistics industry of India and has grown at a five-year CAGR of ~% during the period FY14-FY19. The market was witnessed to grow from $ ~ Billion in FY14 to $ ~ Billion in FY19. This is primarily due to infrastructural investments, increasing foreign trade, and growth of e-commerce market. Increasing export and import value has positively impacted the freight forwarding industry of the country. Unorganised market and Overcapacity create huge competition in the industry, leading to undercutting of price by smaller players. Poor infrastructure, driver shortage, last mile problems, lack of technology penetration is few of the structural problems in the market.
Warehousing to growth at a CAGR of ~% driven by ₹ 2 Trillion investments in 35 logistics parks catering to key production & consumption centres aggregating the warehousing industry. Warehousing market is the second largest contributor in the logistics industry of India and reached $ ~ Billion in FY19 owing to increasing trade, introduction of GST, and growth of e-commerce.
Courier Express and Parcel market acquired a revenue share of ~% in FY19 which was an increment from the 2014. The industry is still growing with the increasing investment in the logistics centres by the government. CEP market is expected to witness high CAGR of about ~% during FY19-24 due increase in express demand from the Small and Medium Enterprise (SME) sector & e-Commerce expansion1
India Freight Forwarding Market Segmentation
By Mode of Service: India freight forwarding market was dominated by road freight in terms of revenue owing to better infrastructure as compared to other modes. Rail freight and sea freight acquired the second and third largest share respectively in terms of revenue FY19.
India Warehousing Market Segmentation
By Business Model: The industrial and retail warehouses dominated the overall UAE warehousing market with a area share of ~% in 2019. This is primarily due to increasing investment in the economy.
By End Users: The major end users of warehousing services in India include 3PL, e-commerce, retail, engineering and manufacturing, electronics, and others.
Organised Industrial Warehouses by Grade A and Grade B Warehouses: Grade A warehouses accounted for ~% of the total organised warehouses and Grade B accounts for the remaining ~%.
India Cold Chain Market
The cold chain sector in India has not progressed at par with the global developments in the monitoring and control technologies. Even though new entrants in the sector are employing some of these modern technologies, most of the earlier generation cold storages are still dependent on the manual modes of monitoring assisted with conventional measuring systems.
India has a wide range of climate and physio-geographical conditions which restrict the availability of fruits and vegetables all over the year. An efficient cold chain ensures delivery of produce throughout the year. Agriculture is a seasonal activity which results in surplus production in peak season whereas a lacuna in offseason. The presence of temperature-controlled environment facilitates storage of the processed and fresh products; the products are processed /packed in bulk during peak season and stored in the controlled atmosphere so as to supply in the off-season. The overall revenue generated by the Cold Chain Market has increased from ₹ ~ Billion in FY14 to ₹ ~ Billion in FY19 at a positive CAGR of ~%during the period.
By Service: The majority of the revenues in the market was contributed by cold transportation, with a share of ~% and cold storages accounted for remaining ~%.
Cold Storage by Temperature: Freezers dominated the revenue in the cold storage market, with a massive share of ~% in FY19. It is followed by Chillers and Ambient. Cold chain industry consists of multiple players, of which are 85% of unorganized Players who are unable to invest much in the technology required to build high quality cold storages along with reefer trucks. 36% of the total players are small players with capacity less than 1000MT and their lower margins further limit their ability to maintain quality standards and invest in growth.
Cold Transportation by Mode of Transportation: The cold transportation market is dominated by road freight, accounting for ~%, followed by other modes.
Key Segments Covered: –
Freight Forwarding Market
By Revenue by Mode of Transportation
Road Freight (Volume and Revenue)
Rail Freight (Revenue)
Sea Freight (Revenue)
Air Freight (Revenue)
Warehousing Market
Space by Business Model
Industrial/Retail
CFS/ICD
Cold Storage
Agriculture
Warehousing Space by Region
NCR
Mumbai
Bangalore
Pune
Chennai
Kolkata
Hyderabad
Ahmedabad
Others
Space by End User
3PL
E-Commerce
Retail
Engineering & Manufacturing
Electronics
Others
Cold Chain Market
Revenue by Service
Cold Transportation
Cold Storage
Revenue by Temperature Range
Freezers
Chillers
Ambient
Snapshot on Co-Packing Market in India
Companies Covered
TCI
Agarwal Packers and Movers
Varuna Group
Gati
VRL Logistics
Blue Dart
DTDC
Safexpress
NTC Logistics India
KerryIndev Logistics
Stellar Value Chain
Shree Shubham Logistics
Central Warehousing Corporation
Avvashya CCI
Rhenus Logistics
Avanthi Warehousing Services
ATR Warehousing
Snowman Logistics
Coldman Logistics
ColdStar Logistics
ColdEx
Gubba Cold Storage
Crystal Group
Key Target Audience
Freight Forwarding Companies
E Commerce Logistics Companies
3PL Companies
Consultancy Companies
Logistics/Warehousing Companies
Real Estate Companies/ Industrial Developers
Time Period Captured in the Report: –
Historical Period – 2014-2019
Forecast Period – 2020-2024F
Key Topics Covered in the Report: –
India Logistics Market
India Logistics Industry
India Air Freight Market
India Cold Chain Market
Logistics Market in India
India Rail Freight Market
India Sea Freight Market
Logistics Industry in India
India Cold Storage Market
India Warehousing Market
India Warehousing Industry
Warehousing Prices in India
Warehousing Market in India
Warehousing Industry in India
India Logistics Market Forecast
Industrial Warehousing in India
Indian logistics industry Report
Number of Warehouses in India
Indian logistics industry analysis
Inland Container Depots in India
For More Information on the research report, refer to below link: –
India Logistics Industry Growth
Related Reports by Ken Research: –
Contact Us: –
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
