India 3PL Market: Current Analysis and Forecast (2024-2032)

Report Description

India 3PL Market Size & Forecast

The India 3PL market was valued at USD 36,500 million in 2023 and is expected to grow at a strong CAGR of around 7.95% during the forecast period (2024-2032) owing to rising demand for logistics transportation from manufacturing, automobile e-commerce and retail sectors.

India 3PL Market Analysis

A 3PL is a logistic provider to the companies to ship their products domestically or internationally. India 3PL market is witnessing rapid growth owing to factors such as a large number of companies listing them on the online e-commerce platforms further inducing the demand for the transportation of goods. Furthermore, the government has also aligned its focus towards the adoption of policies that would be conducive to the development and expansion of third-party logistics services in India. After the COVID-19 pandemic customers in the tier-1 and tier-2 cities have extensively focused on e-commerce and quick commerce services for ease of delivery and choosing among a wide variety of options.

The India 3PL market was valued at USD 36,500 million in 2023 and is expected to grow at a strong CAGR of around 7.95% during the forecast period (2024-2032). One of the key factors that have contributed to the growth of the India 3PL market is an expansion of the e-commerce business in the country. According to the Indian Brand Equity Foundation (IBEF), the e-commerce industry in the Indian context will reach USD 325 billion by the year 2030, whereas third-party logistics providers are anticipated to manage USD 17 billion between 2023-2030.

Additionally, India has a vast internet-using population that has fueled the demand for online goods demand.  In 2023, India had 936.16 million internet subscribers including 350 million mature online users.

Considering the shifts the demand for online delivery services will further increase in the coming years/ With the rising number of internet users, growing e-commerce market, quick commerce, lucrative pricing, and festive season sales on online platforms, a wide number of options available to choose from more number of internet buyers are anticipated to join the suit and help the market expansion of India 3PL during 2023-2032.

India 3PL Market Trends

This section discusses the key market trends that are influencing the various segments of the India 3PL Market as identified by our team of research experts.

Technological Adoption

India 3PL market is witnessing a notable shift due to the adoption of technologies such as artificial intelligence, and machine learning. With the industry growth and the pressing need to cater to a wide number of customers across different regions companies are opting for AI and ML-based technologies. Furthermore, predictive analytics, automated warehouse operations, and customer service enhancements are some of the crucial aspects of the business that have improved due to the adoption of artificial intelligence.

Additionally, with the adoption of the Internet of Things, the facilitation of real-time tracking, cold chain monitoring, asset management such as logistics, and track management are other key areas of improvement that are further anticipated to be observed in the coming years. These technological upgrades would help in increasing operational efficiency, reducing the cost of operation, and significantly improving the customer experience further turbocharging the market expansion of the logistics industry.

North India is Expected to Hold Major Market Share During Forecast Period

North India has been witnessing rapid growth for 3PL services due to the growing number of manufacturing units, automotive demand, electronic goods manufacturing, and e-commerce boom. Government policies in the North India region have been conducive to promoting the demand for logistics services. According to the Uttar Pradesh State Industrial Development Authority (UPSIDA), 10% of the total investment received is dedicated to the warehousing and logistics sector in the state. Furthermore, in line with the state’s plan to reach a USD 1 trillion economy by 2027-2028, these investments are crucial. Many companies as Adani Logistics Ltd have announced plans to establish a 30,000 crore square meter warehouse in Uttar Pradesh.

Considering all the shifts the North India region is further anticipated to hold a considerable share in the demand for the 3PL market during 2023-2032.

India 3PL Industry Overview

The India 3PL market is competitive and fragmented, with the presence of several Indian market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some of the major players operating in the All Cargo Logistics Limited, DHL Supply Chain, Future Enterprises Limited, Gati Express & Supply Chain Pvt Ltd, GS Logistics Pvt Ltd, Kuhene Nagel Private Limited, Mahindra Logistics Ltd, Nitco Logistics, DB Schenker Ltd, and UPS.

India 3PL Market News

In 2024, Tata Motors inaugurated its new vehicle manufacturing facility in Tamil Nadu. Tata Motors has announced to invest USD 1.1 billion in this greenfield facility to promote its car manufacturing in the country.

In 2023, Boeing announced to invest in its new logistics center in India to cater to its clients in the country.

India 3PL Market Report Coverage

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive regional level analysis of the industry.

Customization Options:

The India 3PL market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs; hence, feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the India 3PL Market Analysis (2024-2032)

Analyzing the historical market, estimating the current market, and forecasting the future market of the India 3PL market were the three major steps undertaken to create and analyze the adoption of India 3PL in major regions in India. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted with industry experts across the value chain of the India 3PL market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

A detailed secondary study was conducted to obtain the historical market size of the India 3PL market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the India 3PL market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as By Services and By End User. Further regional/country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the India 3PL market. Further, we conducted factor analysis using dependent and independent variables such as By Services and By End User in the India 3PL market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the India 3PL market sector across the country.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the India 3PL market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors, including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques, i.e., the top-down/bottom-up approach, were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets in India. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of the India 3PL market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the India 3PL market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs), including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the India 3PL market. Data was split into several segments and sub-segments after studying various parameters and trends By Services and By End User in the India 3PL market.

The main objective of the India 3PL Market Study

The current & future market trends of the India 3PL market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the India 3PL market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments.
• Segments in the study include areas By Services and By End User.
• Define and analyze the regulatory framework for India 3PL industry.
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
• Analyze the current and forecast market size of the India 3PL market for the major regions.
• Major regions of India studied in the report include North India, East India, West India, and South India
• Company profiles of the India 3PL market and the growth strategies adopted by the market players to sustain in the fast-growing market.
• Deep dive regional level analysis of the industry

You can also purchase parts of this report. Do you want to check out a section wise
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