India Logistics and Warehousing Market Outlook to 2029

The report titled “India Logistics and Warehousing Market Outlook to 2029 – By Market Structure, By Services, By End Users, By Region, and By Mode of Transport” provides a comprehensive analysis of the logistics and warehousing industry in India. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer-level profiling, issues and challenges, and comparative landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the Logistics and Warehousing Market. The report concludes with future market projections based on revenues, by services, mode of transport, region, cause and effect relationships, and success case studies highlighting the major opportunities and cautions.

India Logistics and Warehousing Market Overview and Size

The India logistics and warehousing market reached a valuation of INR 10.2 Trillion in 2023, driven by increased infrastructure investment, rising e-commerce penetration, and regulatory reforms such as the implementation of GST. The market is characterized by major players such as Delhivery, Blue Dart, Allcargo Logistics, TCI, Gati, and Mahindra Logistics, which are recognized for their extensive distribution networks, multimodal capabilities, and technology-enabled services.

In 2023, Delhivery announced the expansion of its warehousing footprint by launching Grade A facilities in tier-2 and tier-3 cities to cater to growing demand from e-commerce and retail clients. Regions like Maharashtra, Tamil Nadu, Karnataka, and NCR serve as logistics hubs due to their proximity to consumption centers, port connectivity, and developed industrial infrastructure.

Market Size for India Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of India Logistics and Warehousing Market:

• Policy Reforms & Infrastructure Push: Government initiatives such as PM Gati Shakti, Bharatmala, Dedicated Freight Corridors, and logistics parks development have significantly enhanced logistics efficiency. Implementation of GST unified the market, enabling smooth interstate movement and reduced lead times.

• E-commerce & Retail Boom: In 2023, the Indian e-commerce sector recorded over 900 million digital buyers, fueling the need for efficient last-mile and fulfillment services. Warehousing demand from e-commerce players grew by 18% YoY, particularly for Grade A warehouses in strategic locations.

• Multimodal Logistics Adoption: Shift towards integrated multimodal logistics has improved cargo movement efficiency. Use of rail, coastal shipping, and air cargo is rising, supported by increased private participation and terminal modernization.

Which Industry Challenges Have Impacted the Growth for India Logistics and Warehousing Market

• Fragmentation and Informalization of Sector: A large portion of India's logistics sector remains unorganized, with approximately 85% of the market operated by small fleet owners, standalone warehouse operators, and regional players. This fragmentation leads to inefficiencies, limited scalability, and inconsistent service quality. As per industry reports, over 60% of warehousing space is still operated in Grade B or C facilities lacking modern amenities.

• High Logistics Cost Burden: India’s logistics costs stand at around 13–14% of GDP, significantly higher than global benchmarks like the US (8%) or Germany (9%). Factors such as poor modal mix, infrastructural gaps, inefficient fleet utilization, and delays at checkpoints contribute to this cost burden. This challenge affects India’s export competitiveness and supply chain efficiency.

• Regulatory and Compliance Complexity: Despite GST streamlining, logistics operators still face state-level regulatory variations, especially in the movement of perishable and hazardous goods. Lack of a single-window clearance system and cumbersome documentation increase the compliance load, particularly for interstate operations. Nearly 30% of logistics operators reported regulatory issues as a barrier to efficient operations.

What are the Regulations and Initiatives which have Governed the Market:

• National Logistics Policy (NLP) 2022: The Indian government introduced the National Logistics Policy aimed at reducing logistics costs and enhancing sectoral competitiveness. It promotes the development of multimodal infrastructure, digitization through ULIP (Unified Logistics Interface Platform), and standardization of warehousing across states. Initial estimates suggest the NLP could reduce logistics cost by 4% of GDP by 2029 if effectively implemented.

• GST Implementation and E-Way Bill System: The rollout of GST in 2017 eliminated interstate check posts and simplified tax structures, facilitating faster movement of goods. The mandatory e-way bill system ensures real-time tracking of shipments and has led to a 20–25% increase in average freight movement speed across major corridors.

• Warehousing Standards and WDRA Accreditation: The Warehousing Development and Regulatory Authority (WDRA) mandates registration for storage facilities that wish to issue negotiable warehouse receipts. As of 2023, over 1,600 warehouses have received accreditation, a move toward formalizing the warehousing ecosystem and improving credit access for agri-logistics operators.

India Logistics and Warehousing Market Segmentation

• By Market Structure: The unorganized segment continues to dominate the Indian logistics and warehousing market due to the large number of small fleet operators, standalone warehouses, and regional transporters that offer cost-effective solutions with deep local penetration. These players often operate with limited technology integration but provide flexible, relationship-based services, especially for intra-city and regional logistics. The organized segment is rapidly growing, driven by increased demand from sectors like e-commerce, pharma, FMCG, and electronics. Companies such as Delhivery, Mahindra Logistics, and TCI are expanding their tech-enabled networks and multimodal capabilities. The organized sector is preferred by large enterprises seeking service-level agreements (SLAs), compliance assurance, and integrated 3PL/4PL solutions.

• By Service Type: Transportation services account for the majority share of the logistics value chain in India. Road transport continues to dominate due to last-mile connectivity and flexible routing, but there is growing adoption of rail and coastal logistics supported by dedicated freight corridors and policy incentives. Warehousing services are gaining momentum, especially in tier-1 and tier-2 cities, driven by e-commerce, manufacturing, and cold chain needs. Organized warehousing players are investing in Grade A warehouses, automation, and inventory tracking systems. Value-added services (VAS) such as packaging, labeling, returns management, and inventory optimization are increasingly bundled into logistics contracts, particularly in e-commerce and retail segments.

• By End-User Industry: E-commerce and Retail remain the largest consumers of organized logistics services in India, driven by rising online shopping and rapid delivery expectations. In 2023, these sectors accounted for an estimated 30% share of the warehousing demand. Automotive, FMCG, and Pharmaceuticals also represent significant demand drivers. The pharmaceutical sector is expanding its need for temperature-controlled logistics, while automotive OEMs and Tier-1 suppliers are increasingly outsourcing their logistics to reduce lead times and focus on core operations.

Competitive Landscape in India Logistics and Warehousing Market

The India logistics and warehousing market is moderately fragmented, with a combination of large integrated logistics service providers and numerous regional players. The rise of organized 3PL/4PL companies and tech-enabled startups such as Delhivery, Blue Dart, Mahindra Logistics, TCI, Allcargo Logistics, Gati, Shadowfax, and Ecom Express has significantly transformed the landscape, introducing efficiency, transparency, and scalability into operations.

Some of the recent competitor trends and key information about competitors include:

• Delhivery: One of India's leading integrated logistics providers, Delhivery handled over 650 million parcels in FY 2023. The company has invested heavily in automation, AI-driven route optimization, and expansion of fulfillment centers across tier-2 and tier-3 cities.

• Blue Dart Express: A dominant player in air express and premium courier services, Blue Dart saw a 12% YoY increase in B2B logistics revenue in 2023, driven by demand from healthcare, banking, and retail sectors. It continues to lead in high-speed, time-sensitive deliveries across India.

• Mahindra Logistics: With a strong presence in the automotive and FMCG sectors, Mahindra Logistics handled over 7.5 million square feet of warehousing space in 2023. The firm expanded its cold chain logistics arm and continues to focus on integrated, asset-light operations.

• Transport Corporation of India (TCI): A diversified player across surface transport, supply chain solutions, and freight forwarding, TCI recorded INR 5,000+ crore revenue in FY 2023. TCI is actively investing in multi-modal logistics and green fleet initiatives.

• Allcargo Logistics: Known for its leadership in container freight stations and project logistics, Allcargo also owns Gati and has consolidated its presence across air, sea, and road freight. The company has expanded its warehousing capacity to over 6 million sq. ft. with pan-India coverage.

• Gati Limited: Gati continues to be a key player in express distribution and supply chain management. In 2023, it enhanced its technology stack with advanced route planning and TMS to improve service speed and reduce operational costs.

• Ecom Express: A leading logistics provider focused on the e-commerce sector, Ecom Express services over 27,000 PIN codes and offers express delivery, reverse logistics, and fulfillment services. It reported 25% growth in shipment volumes in 2023, especially during festive seasons.

• Shadowfax Technologies: A tech-enabled hyperlocal logistics platform, Shadowfax specializes in same-day and on-demand delivery. The company partners with large e-commerce, food, and pharma clients and scaled its operations to 1 million+ daily deliveries in 2023.

What Lies Ahead for India Logistics and Warehousing Market?

The India logistics and warehousing market is projected to grow steadily by 2029, registering a robust CAGR during the forecast period. This growth will be driven by infrastructure modernization, digital transformation, policy interventions, and the sustained rise of sectors such as e-commerce, retail, manufacturing, and pharmaceuticals.

• Expansion of Multimodal Logistics Infrastructure: As part of the government’s Gati Shakti initiative and the National Logistics Policy, there is expected to be a significant increase in the development of multimodal logistics parks, integrated transport corridors, and dedicated freight corridors. This will reduce transit times, optimize logistics costs, and improve cargo handling efficiencies across road, rail, air, and waterways.

• Increased Demand for Grade A Warehousing: Rising expectations from sectors like e-commerce, cold chain, FMCG, and electronics will lead to the expansion of Grade A warehousing facilities across tier-1 and emerging tier-2 cities. These facilities, equipped with automation, IoT, and WMS, will become the standard for B2B and B2C fulfillment requirements by 2029.

• Technology-Driven Logistics Optimization: The adoption of AI, blockchain, IoT, and cloud-based logistics solutions will play a key role in optimizing supply chains. Real-time tracking, predictive analytics, and automated inventory control systems will become integral in improving operational transparency, reducing pilferage, and ensuring timely delivery.

• Rise of Green and Sustainable Logistics: The future of logistics in India will increasingly be influenced by sustainability goals. Logistics firms are expected to adopt EV fleets, green warehousing (solar-powered facilities, recyclable packaging), and carbon footprint tracking. These practices will align with ESG mandates and appeal to environmentally conscious clients and global investors.

Future Outlook and Projections for India Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

India Logistics and Warehousing Market Segmentation

• By Market Structure:

• Organized Logistics Service Providers (3PL & 4PL)

• Unorganized Fleet Operators and Small Warehouses

• Freight Forwarders

• Express Logistics Companies

• Integrated Multimodal Operators

• E-commerce Fulfillment Service Providers

• By Service Type:

• Transportation (Road, Rail, Air, Coastal Shipping)

• Warehousing (Dry, Cold Chain, Bonded, Grade A/B/C)

• Inventory Management & Fulfillment

• Last-Mile Delivery

• Freight Brokerage & Freight Consolidation

• Value-Added Services (Packaging, Labeling, Reverse Logistics)

• By Mode of Transport:

• Road Transport

• Rail Freight

• Air Cargo

• Inland Waterways / Coastal Shipping

• Pipeline Logistics (Oil & Gas)

• By End-User Industry:

• E-commerce & Retail

• FMCG

• Automotive

• Pharmaceuticals & Healthcare

• Electronics & High-Tech

• Agriculture & Food Processing

• Industrial & Manufacturing

• Textiles & Apparel

• By Warehousing Type:

• Grade A

• Grade B & C

• Cold Chain Warehousing

• Fulfillment Centers (B2C/D2C)

• Bonded Warehouses

• Bulk/Commodity Storage

• By Region:

• Northern Region (Delhi NCR, Punjab, Haryana, Uttar Pradesh)

• Western Region (Maharashtra, Gujarat, Rajasthan)

• Southern Region (Tamil Nadu, Karnataka, Telangana, Kerala)

• Eastern Region (West Bengal, Odisha, Bihar, Jharkhand)

• Central Region (Madhya Pradesh, Chhattisgarh)

Players Mentioned in the Report:

Freight Forwarding Companies

• Lords Freight India Private Limited
• Tiger Logistics
• APT Logistics
• Ocean Sky Logistics
• Seal Freight
• SVP Logistics
• Cogoport
• PandoCorp
• Stockarea
• Shipping Corporation of India (SCI)

Warehousing Companies

• IndoSpace
• Mahindra Logistics
• TVS Supply Chain Solutions
• Warehousing Express Logistics Pvt. Ltd.
• AAJ Enterprises
• Stockarea
• Kool-ex Cold Chain
• Navata SCS
• Godamwale
• WareIQ

E-Commerce Logistics Companies

• Dehivery
• Ecom Express
• XpressBees
• Shadowfax
• Blue Dart
• DTDC
• Shiprocket
• WareIQ
• AAJ Enterprises
• Shippit

Express Logistics Companies

• Blue Dart Express

• DTDC

• Gati Ltd.

• TCI Express

• Safexpress

• Aramex India

• FedEx India

• DHL Express India

• India Post

• Porter

Key Target Audience:

• Logistics and Supply Chain Companies

• E-commerce Platforms

• Warehouse Developers and Operators

• Government Agencies (Ministry of Commerce & Industry, DPIIT, NITI Aayog)

• Port & Rail Infrastructure Authorities

• Freight Forwarding & Custom Clearance Agents

• Investment & Private Equity Firms

• Research and Consulting Organizations

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029