India Contract Logistics Market Size (2024 - 2029)

The India Contract Logistics Market is experiencing growth driven by several factors, including the resurgence of e-commerce and the expansion of domestic consumption in various sectors. The market's expansion is supported by urbanization, economic development, and an increasing middle-class population, which boost the demand for fast-moving consumer goods and luxury items. The sector is further propelled by technological advancements such as artificial intelligence, automation, and mobile commerce, which enhance supply chain efficiency and consumer engagement. Despite disruptions caused by the COVID-19 pandemic, the market has adapted and continues to grow, reflecting the dynamic changes in consumer behavior and market demands.

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Market Size of India Contract Logistics Industry

India Contract 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 Contract Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Contract Logistics Market Analysis

The India Contract Logistics Market was valued at USD 19 Billion in 2022, and it is expected to witness a CAGR of more than 5% during the forecast period.

  • The COVID-19 pandemic led to global lockdowns, and commercial activities halted and challenged the economy, disrupting the market with massive changes in supply chains, regulations, and workforce requirements. Later after easing restrictions, the increasing e-commerce sales and other end-user industries sales in the country retrieved the contract logistics market.
  • Moreover, urbanization, economic development, and growth in the middle-class population have supported the growth in domestic consumption of fast-moving consumer goods for everyday consumption, personal automobiles, household items, and luxury items which is driving the growth of contract logistics in the retail space.
  • Furthermore, e-commerce plays a vital role in the growth of the contract logistics sector in the country. Trends such as an increase in mobile commerce, the emergence of new payment methods, expansion of ex-commerce into rural areas, increasing utilization of Artificial intelligence and automation, the emergence of new business models, consumer shifts, etc. are driving online sales in the country, further supporting the contract logistics sector growth. In addition, technology-driven interventions like big data, predictive analytics, intelligent material handling equipment, Autobots for materials movement, AS/RS beyond the routine WMS/TMS applications, mobile apps for tracking, and real-time status updates are taking the contract logistics space in India by storm.

India Contract Logistics Industry Segmentation

Contract logistics refers to a long-term partnership that includes a variety of services, from the transportation of goods or replacement parts to the delivery of goods to the final client. The service offerings of contract logistics include the following: warehouses, personnel, appropriate equipment, stock management, dispatch follow-up, and after-sales service, among others. A complete background analysis of the India Contract Logistics Market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact is included in the report.

India's Contract Logistics Market is segmented By Type (Outsourced and Insourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, and Pharmaceuticals, and Other End Users(Energy, Construction, Aerospace, etc.)). The report offers market size and forecasts in values (USD billion) for all the above segments.

By Type
Insourced
Outsourced
By End User
Manufacturing and Automotive
Consumer Goods & Retail
High - Tech
Healthcare and Pharmaceutical
Other End Users (Energy, Construction, Aerospace, etc.)
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India Contract Logistics Market Size Summary

The India Contract Logistics Market is experiencing significant growth, driven by the resurgence of e-commerce and the evolving landscape of supply chain management. The market, which faced disruptions due to the COVID-19 pandemic, has rebounded with the increase in online sales and the expansion of e-commerce into rural areas. Urbanization and the growth of the middle-class population have further fueled domestic consumption, particularly in the retail sector. The integration of advanced technologies such as artificial intelligence, big data, and predictive analytics is transforming the logistics space, enhancing efficiency in inventory management, transportation, and real-time tracking. These technological advancements, coupled with the rise in mobile commerce and new payment methods, are pivotal in supporting the growth of contract logistics in India.

The logistics sector in India is becoming increasingly essential for retailers, particularly with the global shift towards e-commerce. Companies are adopting online and omnichannel strategies, making contract logistics crucial for effective order fulfillment. The manufacturing industry, supported by initiatives like 'Make in India,' is also contributing to the market's expansion by outsourcing supply chain management to focus on core competencies and cost efficiency. The automobile sector's growth in exports and imports further drives the demand for multi-modal logistics services. The market is highly competitive and fragmented, with major players like Deutsche Post DHL and DB Schenker actively expanding their operations to capitalize on the burgeoning opportunities. These developments indicate a robust growth trajectory for the contract logistics market in India, despite the challenges of managing efficient networks and controlling costs.

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India Contract Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Insights in Technological Trends

    3. 1.3 Brief on Government Regulations and Initiatives

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Insights on Freight Transportation Costs /Freight Rates

    6. 1.6 Insights on E-Commerce Industry in the Region (Domestic and Cross-Border)

    7. 1.7 Insights on Contract Logistics in the Context of After-Sales/Reverse Logistics

    8. 1.8 Insights on the impact of Implementation of GST in the Logistics Sector

    9. 1.9 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing & Transportation, Supply Chain Services, and Other Value-Added Services)

    10. 1.10 Insights into Key Special Economic Zones (SEZS) and Manufacturing Hubs

    11. 1.11 Impact of Covid-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Insourced

      2. 2.1.2 Outsourced

    2. 2.2 By End User

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Consumer Goods & Retail

      3. 2.2.3 High - Tech

      4. 2.2.4 Healthcare and Pharmaceutical

      5. 2.2.5 Other End Users (Energy, Construction, Aerospace, etc.)

India Contract Logistics Market Size FAQs

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

Deutsche Post Dhl group, DB Schenker, Agility Logistics, All Cargo Logistics Limited and VRL Logistics are the major companies operating in the India Contract Logistics Market.

India Contract Logistics Market Report Snapshots

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