India Intra-city Logistics Market Size (2024 - 2029)

The Indian intra-city logistics market is experiencing significant growth, driven by the increasing demand for rapid and on-demand delivery services. This sector is crucial for meeting the delivery needs of small and medium-sized enterprises, which are essential to the Indian economy but have a limited online presence. The market's expansion is further fueled by the accelerated adoption of online services post-pandemic, highlighting the importance of innovative technology in optimizing resources and ensuring efficient demand-supply management.

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Market Size of India Intra-city Logistics Industry

India Intra-city 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 Intra-city Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

India Intra-city Logistics Market Analysis

The size of Indian intra-city logistics market is USD 1.48 billion in the current year and is expected to register a CAGR of more than 5% during the forecast period. Intra-city logistics providers typically deal with rapid and on-demand delivery requirements and are highly dedicated to assuring same-day deliveries. As a result, the entire chain of operations is subject to demand variability.

  • Further, the last-mile delivery sector in India is on an upward trend. Despite the country being under lockdown in 2020-2021, with only critical deliveries permitted, e-commerce shipments increased drastically in the country. It is estimated that intra-city logistics accounts for approximately 15-20% of the road transport industry.
  • The COVID-19 pandemic accelerated the widespread adoption of online services. Notably, small and medium firms, which form the backbone of the Indian economy, continue to have a minimal online presence.
  • It is believed that just 20% of small firms presently offer online services, leaving a largely untapped market and limitless opportunities for the logistics sector to flourish. Intra-city logistics providers are becoming critical for these small and medium-sized firms to cater to their customers' demands.
  • Orders may suddenly rise from one city area, necessitating swift identification and connection with an available delivery person. Innovative technology is the foundation of a system that efficiently meets demand and supply needs to provide flawless function, resource optimization, and positive unit economics.

India Intra-city Logistics Industry Segmentation

Intra-city logistics is not just about delivering parcels in 30 minutes. It is about solving the business challenges that companies face and building capabilities to seamlessly execute any sort of goods movement irrespective of their scale and size. The Indian intra-city logistics market is segmented by service (transportation, warehousing and distribution, and value-added services) and by city (Delhi, Bangalore, Mumbai, Hyderabad, Chennai, and Others). The report offers market size and forecasts for the Indian intra-city logistics market in value (USD billion) for all the above segments.

By Service
Transportation
Warehousing and Distribution
Value-added Services
By City
Delhi
Bangalore
Mumbai
Hyderabad
Chennai
Others
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India Intra-city Logistics Market Size Summary

The intra-city logistics market in India is experiencing significant growth, driven by the increasing demand for rapid and on-demand delivery services. This sector is crucial for facilitating same-day deliveries, which are becoming increasingly important in the e-commerce landscape. The COVID-19 pandemic has further accelerated the adoption of online services, highlighting the potential for growth in the logistics sector, particularly among small and medium-sized enterprises that have yet to fully embrace digital platforms. The rise of e-commerce in tier-2 and tier-3 cities is reshaping the market dynamics, with these regions accounting for a growing share of online sales and presenting lucrative opportunities for logistics providers. Companies like LetsTransport and Cogos are capitalizing on this trend by expanding their services to meet the burgeoning demand in these areas.

The competitive landscape of the intra-city logistics market is marked by the presence of numerous local players and the emergence of third-party logistics (3PL) aggregators, which offer comprehensive solutions including inventory management, warehousing, and last-mile delivery. The direct-to-consumer (D2C) model is gaining traction, with brands like MamaEarth and Sugar leveraging digital platforms to achieve rapid growth, thereby intensifying competition with established FMCG companies. The holiday season presents a critical period for merchants, necessitating efficient logistics to handle increased demand. Investments in technology and infrastructure, such as the deployment of electric vehicles for sustainable delivery, are transforming the sector. Strategic acquisitions, like Mahindra Logistics' purchase of Whizzard, are enhancing capabilities in last-mile delivery, underscoring the dynamic nature of the market.

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India Intra-city Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Technological Trends

    3. 1.3 Government Initiatives and Regulations

    4. 1.4 Investment Scenarios

    5. 1.5 Industry Supply Chain / Value Chain Analysis

    6. 1.6 Insights into the E-commerce Industry

    7. 1.7 Insights into Same Day Delivery Market

    8. 1.8 Impact of COVID-19 on the Market (Including Short-term and Long-term Effects on the Market as well as Economy)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing and Distribution

      3. 2.1.3 Value-added Services

    2. 2.2 By City

      1. 2.2.1 Delhi

      2. 2.2.2 Bangalore

      3. 2.2.3 Mumbai

      4. 2.2.4 Hyderabad

      5. 2.2.5 Chennai

      6. 2.2.6 Others

India Intra-city Logistics Market Size FAQs

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

FM Logistics India, Porter, Lets Transport, cityXfer and Shadowfax are the major companies operating in the India Intra-city Logistics Market.

India Intra-city Logistics Market Report Snapshots

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