India Logistics Market Player Analysis and Growth Opportunities - 2030

May 1, 2025 - 08:56

India Logistics Market Projected to Expand at 8% CAGR Through 2030

The India Logistics Market size was valued at around USD 230 billion in 2024 and is projected to reach USD 360 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 8% during the forecast period, i.e., 2025-30. Different factors are credited for the expansion of the market. Favorable government policies and initiatives are aiming for infrastructural improvements and the reduction in logistics costs. Logistics costs have been laid down as per global benchmark as per foundations and guidelines of the National Logistics Policy, by enhancing the share of railways in freight movement, which accounted for 18%, through developing dedicated freight corridors (DFCs), expansion of inland waterways and enhancement of road infrastructure. DFCs are 96% complete as of April 2024 and are expected to enhance the efficiency and capacity of rail freight and improve its share in the overall modal mix by 2030.

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Strategic Takeaways from the Report:

Market Sizing and Forecasting
Regulatory and Policy Influence
Competitive Trends and M&A Activity
Innovation Drivers and Disruptive Technologies
Investment Hotspots and Emerging Niches
Geographical Dynamics and Trade Flows

India Logistics Market Segment Overview & Classification

This market is categorized to offer targeted insights across various operational and consumer-related verticals.

Segment List:

By Service

Transportation Services- Market Size & Forecast 2020-2030, USD Million
Warehousing & Distribution Services- Market Size & Forecast 2020-2030, USD Million
Freight Forwarding Services- Market Size & Forecast 2020-2030, USD Million
Inventory Management Services- Market Size & Forecast 2020-2030, USD Million
Value Added Logistics Services- Market Size & Forecast 2020-2030, USD Million
Integration & Consulting Services- Market Size & Forecast 2020-2030, USD Million

By Category

Conventional Logistics- Market Size & Forecast 2020-2030, USD Million
E-Commerce Logistics- Market Size & Forecast 2020-2030, USD Million

By Model

2PL (Second Party Logistics)- Market Size & Forecast 2020-2030, USD Million
3PL (Third Party Logistics)- Market Size & Forecast 2020-2030, USD Million
4PL (Fourth Party Logistics)- Market Size & Forecast 2020-2030, USD Million

Based on the Model, 3PL (Third Party Logistics) leads the India Logistics Market. It holds approx. 61% of the total market value. This strong growth is attributed to a few factors. They are highly flexible in cases of demand fluctuation which helps in their extensive adaptability in the market. With their ability to handle complex logistics demands, they are highly preferred in industries like; manufacturing, e-commerce, retail, and others that further boost the segment’s growth in the market. Also, they provide comprehensive logistic services that allow them to outsource their supply chain operations to experts who streamline the business and help in the effective management of logistics. The growth is further propelled due to cost efficiency using economics of scale as they can offer logistics services at lower cost compared to in-house logistics.

By Type

Forward Logistics- Market Size & Forecast 2020-2030, USD Million
Reverse Logistics- Market Size & Forecast 2020-2030, USD Million

By type, Forward Logistics leads the India Logistics Market with a market share of around 70%. Increased order volumes & timely delivery to consumers in the booming e-commerce sectors have created an extensive demand for forward logistics. Also, they involve an extensive network of transportation modes that helps them in the transportation of goods smoothly in both domestic and international markets. Moreover, various government initiatives have streamlined logistics operations that help in the reduction of transit times and costs, further boosting the segment growth. Also, they allow a seamless flow of goods from manufacturers to consumers with great efficacy with the help of end-to-end services that boost their demand in the industry.

By Operation

Domestic- Market Size & Forecast 2020-2030, USD Million
International- Market Size & Forecast 2020-2030, USD Million

By Mode of Transport

Roadways- Market Size & Forecast 2020-2030, USD Million
Waterways- Market Size & Forecast 2020-2030, USD Million
Airways- Market Size & Forecast 2020-2030, USD Million
Railways- Market Size & Forecast 2020-2030, USD Million

By Region

North India
South India
East India
West India

By End Use

Manufacturing- Market Size & Forecast 2020-2030, USD Million
Consumer Goods- Market Size & Forecast 2020-2030, USD Million
Retail- Market Size & Forecast 2020-2030, USD Million
Food & Beverages- Market Size & Forecast 2020-2030, USD Million
IT Hardware- Market Size & Forecast 2020-2030, USD Million
Healthcare- Market Size & Forecast 2020-2030, USD Million
Chemicals- Market Size & Forecast 2020-2030, USD Million
Construction- Market Size & Forecast 2020-2030, USD Million
Automotive- Market Size & Forecast 2020-2030, USD Million
Telecom- Market Size & Forecast 2020-2030, USD Million
Oil & Gas- Market Size & Forecast 2020-2030, USD Million
Others.

These divisions help clarify demand patterns and expected shifts.

Market Driver

Growth of E-Commerce Driving Market Growth – The explosive rise of E-commerce across India has directly led to a 50% increase in demand for different logistics services capable of quick and convenient delivery. This is ostensibly owing to the increased penetration of smartphones easily engaged in E-commerce. Also, the increasing investments in logistics by big E-commerce companies in the provision of quick delivery and enhanced customer experience is driving the market demand. For instance, in April 2023, Flipkart stepped up its logistics operations to ensure that deliveries across the country are met with ease, keeping in mind the transformation of tech-driven E-commerce. Also, E-commerce rose sharply during and after the pandemic, showing around a 36% increase in orders that have created immense demand for the logistics market in India. Besides, this led to the growing adoption of micro-fulfillment centers, particularly in urban areas, enabling quick delivery times to meet the growing consumer demand for same- or next-day deliveries.

India Logistics Market Competitive Snapshot from 2025-2030

The report highlights established and emerging players in the global India Logistics Market, evaluating their strengths, challenges, and potential for innovation.

Key Competitors Include:

FM Logistics
Gati
Mahindra Logistics
Ekart Logistics
Blue Dart
DTDC
Ecom Express
DHL
Delhivery
FedEx
Xpressbees
Shadowfax
Aramex
Shiprocket Fulfillment
Transport Corporation of India Ltd. (TCI)
Allcargo Logistics Ltd.

Their activities include partnerships, product launches, and geographic expansions.

India Logistics Industry Prime Challenge

High Logistics Cost Impeding Market Growth – Higher logistics costs in India pose a significant challenge for the growing market. It accounts for 13-14% as a percentage of GDP which is very high as compared to the global average ranging between 8%-9% that is observed in developed countries. This cost is highly attributed to rising oil prices and intensive toll tax in India. With roads accounting for about 71% of the transit, the running cost continues to increase leaving railways and waterways with a smaller share. Also, poor road infrastructure and congestion contribute to increased transit times and higher fuel consumption which further adds up to the cost of maintenance that directly affects the market growth. Even after various government initiatives to address these issues, it remains a constant issue that impedes market growth.

Frequently Asked Questions (FAQs):

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Which competitors dominate the landscape?
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