The Indian E-Commerce Logistics Industry Is Expected to Grow by More Than 20% CAGR in the Next Five Years: Makreo Research

India E-commerce Logistics Market Performance and Future Outlook to 2027 By Mode of Transportation (Rail, Road, Air, Sea), By Distribution Channel (Organized and Unorganized), By Geography (A1 Metro Cities, Tier I, Tier 2 and others), By Activity (Transportation and Warehousing), By End User, and By Reverse Logistics Market

Market Overview

India is one of the emerging markets across the world. Due to the diverse population, the demand for an E-Commerce platform is rising. In India, particularly among Tier I and Tier II, the eCommerce growth has been tremendous during the year 2020. The expansion of digital purchasing has been pushed by changing consumer habits during Covid-19. According to India’s e-commerce logistics report, in 2021, the size of the Indian logistics market grew by 4%, and it is expected to grow at a CAGR of 5% from 2022-27, generating market revenue of USD 633.6 billion by 2027. The future of transportation & logistics in India is expected to drive warehousing demand and industry trends in the e-commerce logistics market are turning towards reverse logistics.

Moreover, the increasing purchase from cross-border and cheap shipping costs for consumers is anticipated to grow the market. Many players such as Amazon provides free next-day delivery on orders over a certain threshold, as well as paid same-day delivery to certain localities in India.

On the other hand, numerous major elements will aid expansion, including the growing middle-class-income population, high Internet penetration rate, robust transportation logistics network, advanced digital payment systems, expanding tech-savvy youth population, and strong government support.

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Post-pandemic effect on India’s e-commerce Logistics Sector

The outbreak of the virus had a positive impact on the India e-commerce logistics sector. The E-commerce logistics players took several actions to maintain seamless operations during a difficult period when the supply chain was affected by prolonged lockdowns in a few other countries. In order to ensure the business’s continuity, players expanded their service expansion in small towns and rural areas. Moreover, to reduce the danger of infection, e-commerce logistics players are using solutions like contactless deliveries, which is increasing demand for online transactions.

Further Key Findings of India e-commerce Logistics Report

Increasing Government Initiatives: Several government initiatives have been implemented to encourage innovation, entrepreneurship, and a cashless economy, giving a boost to eCommerce development in the country. Indian Government to launch the Secured Logistics Document Exchange (SLDE) along with a calculator for Green House gas Emissions to improve the ease of doing business, logistic efficiency, reduce the cost of logistics and promote the multi-modality and sustainability.

Increasing Digitization: For manufacturers, traders, dealers, wholesalers, and small retailers during the past two years, embracing a digital and computerized supply chain ecosystem through platform-driven approaches has become essential for business growth. Indian consumers are increasingly adopting digital technology, creating a lucrative opportunity for e-commerce logistics firms.

Increasing Smartphone Users: India is expected to have 820 million smartphone users out of the total population by the end of 2022. rural India witnessed a year-on-year growth of 36.2% in 2020 as opposed to a 7.1% growth in urban India in the same period in terms of internet users. Smartphone penetration in rural India has risen from 9% in 2015 to 25.3% in 2020. These figures give rise to the increasing penetration of e-commerce in the economy where more than 3000 registered e-commerce sites are being operated.

Large Number Youth Population of India: India is placed 5th in the world’s youth population. This creates a demographic dividend for the nation and helps it to achieve the USD 5 trillion economy objective. The large youth population offers both the market and workforce to the e-commerce logistics industry. The youth are the drivers for innovation, entrepreneurship, and diversity. India has more than 50% of the population below the age of 25. In 2020 the average age of the population was 29 in India.

Makreo Research has published a study titled “India E-commerce Logistics Market Performance and Future Outlook to 2027” is a detailed study that offers the reader to understand the market performance of the market size for the logistics industry in India. On-demand aspect, it is important to understand the performance of the E-commerce market in India and its outlook and on the supply aspect, we have studied E-commerce logistics service providers and annual shipments. The study is a combination of a qualitative and quantitative assessment of the industry covering micro and macro level of assessment of the economy and other independent factors that are highly correlated with the E-commerce logistics market of India.

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The report further carried out an analysis based on the below-mentioned parameters:

COVID-19 Impact Assessment India’s e-commerce logistics report helps the reader to understand the shifts happening in the E-commerce industry after the virus outburst also impact the E-commerce logistics demand and services.
Market Assessment: The report examines the market size for the logistics industry in India on several grounds including smartphone users in the country, online shoppers’ growth year on year, working for the female population, E-commerce shipments, mode of transportation, and others. The report gives an understanding of India’s E-commerce logistics market performance in the past and during the COVID scenario also it helps to comprehend the future of e-commerce logistics in India.
Trade Performance This section gives an overview of the total trade transaction that happened in the past in both domestic and international markets.
Company’s Mentioned Delhivery, Blue Dart, FedEx, DHL, DTDC, Aramex, XpressBees, Gati Ltd, Allcargo Logistics, eKart, Amazon Transportation

The report helps to answer the following questions:

  1. How India’s E-commerce logistics industry is shaping up?
  2. What is the total market size for the logistics industry in India and the future of E-Commerce logistics?
  3. What are the key challenges for the industry at present and the post-pandemic effect on India’s e-commerce logistics?
  4. How E-commerce industry is performing and what is the future expected growth outlook?
  5. What is the average growth expected for the India E-commerce logistics market?
  6. How India E-commerce Logistics Companies have performed in the past?
  7. What are the major driving factors for the India E-commerce logistics market?
  8. What are the major industry trends in the e-commerce logistics market?
  9. What are the prime mode of transportation for the E-commerce logistics market in India?
  10. Which mode of transportation accounts for the highest stake in India’s E-commerce logistics shipments?
  11. What is the expected future growth outlook for the India E-commerce logistics market?

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annual shipmentsCAGRdigitizatione-commerce sitesgovernment supportIndia E-commerce LogisticsMakreo ResearchMarketingNewsSalessales technologysalestechSalesTech NewsSalestech stacksmartphone users