India Freight and Logistics Market Size

The India Freight and Logistics Market is poised for significant growth, with its market size expected to expand substantially over the forecast period. This growth is driven by substantial investments in infrastructure, including the development of regional airports and the expansion of commercial vehicle sales. The collaboration between major companies and the Indian government on electric freight initiatives further underscores the market's potential, as the demand for electric trucks is anticipated to rise dramatically. These factors collectively contribute to the robust expansion of the market's scale and scope in the coming years.

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Market Size of india freight and logistics Industry

India Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 317.3 Billion
svg icon Market Size (2030) USD 545.6 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 9.46 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)

Major Players

India Freight and Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Key Players

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India Freight and Logistics Market Analysis

The India Freight and Logistics Market size is estimated at 317.3 billion USD in 2024, and is expected to reach 545.6 billion USD by 2030, growing at a CAGR of 9.46% during the forecast period (2024-2030).

317.3 Billion

Market Size in 2024 (USD)

545.6 Billion

Market Size in 2030 (USD)

7.85 %

CAGR (2017-2023)

9.46 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

10.66 %

Projected CAGR, Air, 2024-2030

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India's Airports Authority and private operators are investing USD 11 billion until 2025. While 400 regional routes are already operational, an additional 600 routes are in the pipeline.

Largest CEP Market by Destination

59.54 %

value share, Domestic, 2023

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A collaboration between India Post and Railways was established in 2022 for first-mile and last-mile connectivity for domestic parcel/freight service for B2B and B2C markets.

Largest Market by End User Industry

33.08 %

value share, Wholesale and Retail Trade, 2023

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The rising middle-class population has spurred a surge in retail consumption, driving the growth of the end-user industry. Between 2019 and 2023, the Indian retail market witnessed a robust 34% growth.

Largest Warehousing Market by Temperature Control

91.71 %

value share, Non-Temperature Controlled, 2023

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The Indian Grade-A warehousing sector witnessed robust growth, surpassing 163 million sq. ft in H1 2023. This surge was primarily driven by rapid industrial expansion.

Fastest Growing Warehousing Market by Temperature Control

9.08 %

Projected CAGR, Temperature Controlled, 2024-2030

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The Indian pharmaceuticals market has been a significant driver of cold storage demand. The OTC pharmaceuticals market is expected to register a CAGR of 10.95% from 2024 to 2029.

Growing government initiatives and programs like Zero Emission Vehicles Emerging Markets Initiative (ZEV-EMI) are driving industry demand

  • From 2021 to 2025, the Airports Authority of India and private operators are jointly investing a substantial USD 11 billion. As part of the expanding Regional Connectivity Scheme, there are plans to develop smaller, underserved, and remote airports. While India currently has 400 regional routes, an additional 600 are in the pipeline to connect to a total of 156 airports. By 2024, India aims to establish 100 new airports, with a mix of government funding and public-private partnerships. Notably, eight out of the planned 21 greenfield airports are already operational, with the Noida International Airport at Jewar set to be the country's largest. Spanning 1,334 hectares, this airport boasts a cutting-edge volumetric modular design.
  • In 2021, India witnessed the production of approximately 246,000 heavy trucks. The sales figures for commercial vehicles tell an interesting story: from 568,000 in FY 2021, the numbers surged to 717,000 in FY 2022 and further rose to 962,000 in FY 2023. Tata Motors emerged as the market leader, commanding a share of over 42%. Factors such as the economic slowdown in 2020, the transition to BS-VI emission standards, and revised axle load norms played a role in the segment's sales volume decline for two consecutive years.
  • In a significant move in July 2023, 15 prominent companies joined forces under the Zero Emission Vehicles Emerging Markets Initiative (ZEV-EMI) and the Indian government's E-FAST (Electric Freight Accelerator for Sustainable Transport) program. This collaboration, announced at the G20 and Clean Energy Ministerial event, unveiled multiple pilot projects. As a result, the demand for electric trucks (e-trucks) in India is projected to surpass 5,000 by 2027 and reach approximately 7,700 by 2030.
India Freight and Logistics Market

India Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • From 2021 to 2025, the Airports Authority of India and private operators are jointly investing a substantial USD 11 billion. As part of the expanding Regional Connectivity Scheme, there are plans to develop smaller, underserved, and remote airports. While India currently has 400 regional routes, an additional 600 are in the pipeline to connect to a total of 156 airports. By 2024, India aims to establish 100 new airports, with a mix of government funding and public-private partnerships. Notably, eight out of the planned 21 greenfield airports are already operational, with the Noida International Airport at Jewar set to be the country's largest. Spanning 1,334 hectares, this airport boasts a cutting-edge volumetric modular design.
  • In 2021, India witnessed the production of approximately 246,000 heavy trucks. The sales figures for commercial vehicles tell an interesting story: from 568,000 in FY 2021, the numbers surged to 717,000 in FY 2022 and further rose to 962,000 in FY 2023. Tata Motors emerged as the market leader, commanding a share of over 42%. Factors such as the economic slowdown in 2020, the transition to BS-VI emission standards, and revised axle load norms played a role in the segment's sales volume decline for two consecutive years.
  • In a significant move in July 2023, 15 prominent companies joined forces under the Zero Emission Vehicles Emerging Markets Initiative (ZEV-EMI) and the Indian government's E-FAST (Electric Freight Accelerator for Sustainable Transport) program. This collaboration, announced at the G20 and Clean Energy Ministerial event, unveiled multiple pilot projects. As a result, the demand for electric trucks (e-trucks) in India is projected to surpass 5,000 by 2027 and reach approximately 7,700 by 2030.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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India Freight and Logistics Market Size Summary

The India Freight and Logistics Market is poised for significant growth, driven by a combination of strategic investments and infrastructural developments. The market is characterized by a robust expansion in transportation and storage sectors, which are crucial for facilitating the movement of goods both domestically and internationally. The government's Regional Connectivity Scheme, alongside private sector investments, is set to enhance air travel connectivity by developing new airports and expanding existing ones. This initiative is complemented by advancements in road and rail transportation, which are essential for supporting India's status as a major manufacturing hub in Asia. The logistics sector, encompassing a mix of established players and emerging startups, is pivotal in streamlining e-commerce deliveries and enhancing supply chain efficiencies.

The market landscape is fragmented, with key players like Allcargo Logistics Ltd., Blue Dart Express Ltd., Container Corp. of India Ltd., Delhivery Limited, and DHL Group playing significant roles. The sector is also witnessing a shift towards sustainable practices, as evidenced by collaborations under the Zero Emission Vehicles Emerging Markets Initiative and the Indian government's E-FAST program. These efforts are expected to drive the adoption of electric trucks, aligning with global sustainability trends. However, challenges such as rising fuel prices and economic fluctuations pose risks to profitability. Despite these challenges, the market's growth trajectory remains strong, supported by favorable government policies, increasing interstate trade, and the burgeoning FMCG sector.

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India Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

India Freight and Logistics Market Size FAQs

The India Freight and Logistics Market size is expected to reach USD 317.27 billion in 2024 and grow at a CAGR of 9.46% to reach USD 545.56 billion by 2030.

In 2024, the India Freight and Logistics Market size is expected to reach USD 317.27 billion.

India Freight And Logistics Market Report Snapshots

India Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030