Market Trends of India Domestic Courier, Express, and Parcel (CEP) Industry
This section covers the major market trends shaping the India Domestic Courier Express & Parcel Market according to our research experts:
New Innovations and Technology Driving the Market
Consumer preferences constantly change, so they demand a more personalized e-commerce and logistics experience that pampers them and provides the most excellent ease from beginning to end. To meet this increased demand, logistics platforms employ technologies like AI, IoT, and Big Data to gain insights into consumer preferences and adapt their experiences.
With over 800 Direct-to-Consumer (D2C) brands in the country, the sector is expected to grow to USD 100 billion by 2025. Due to its broad consumer reach and greater engagement, the D2C business model was adopted by various brands and merchants in 2021. As the D2C industry grows, more D2C brands are looking for platforms that provide end-to-end logistics and fulfillment services, and this trend is expected to continue in the years ahead.
One of the elements of a thriving logistics ecosystem is robust warehousing. To ensure flawless warehouse management, logistics players have begun automating practically every component to ensure human resources are committed to the more critical, challenging jobs. Even though pre-pandemic years saw digital integration in warehouses, 2021 has proven to be a year of progress. Logistics systems have incorporated robotic order picking and even packaging to reduce time and money, and today, warehouses.
Because of the pandemic, consumers increasingly prefer contactless services for nearly every purchase. The logistics industry offers contactless deliveries that customers can verify with an OTP sent to their phones. Such contactless services have gained so much traction that they will likely become industry standards.
Rise in the E-commerce Sector to Boost the Domestic CEP Market in India
India's e-commerce expansion will also help the country become a key player in e-business, with a projected growth potential of just under USD 100 billion by 2024. Fashion, apparel, and groceries are the top-performing categories in India's e-commerce market share. Consumer electronics, projected to increase at an annual rate of up to 8% by 2025, closely follows these sectors.
These remarkable numbers are attributed partly to the global pandemic, which has caused many people to prefer to shop online rather than leave their homes. One explanation for India's phenomenal rise in the online shopping sector is the increasing penetration of IT infrastructure and mobile phone and internet connectivity in rural areas. Aside from that, new government laws now encourage 100% foreign direct investment in B2B e-commerce enterprises, which has aided the Indian internet market's growth.
According to forecasts, the online grocery industry, valued at roughly USD 2 billion in 2021, will grow to USD 29 billion by 2024. This is because, as a result of reputable companies joining the market, more individuals purchase groceries online.
Experts predict that the number of online shoppers in India will exceed 350 million in the next five years. This alone will help India's e-commerce business grow, as more customers equal more money made through e-commerce transactions.
