India E-commerce Logistics Industry Revenue to grow by more than 20% CAGR in Next Five years: Makreo Research


Posted August 25, 2022 by MK2022

The India E-commerce logistics market was valued at more than USD 3.0 Billion in 2021 and is anticipated to grow at a double-digit CAGR in the next five years.

 
India is one of the emerging markets across the world. Due to the diverse population, the demand for an E-commerce platform is rising. In India, particularly among Tier I and Tier II, the eCommerce growth has been tremendous during the year 2020. The expansion of digital purchasing has been pushed by changing consumer habits during Covid-19. According to India E-commerce logistics report, in 2021, size of the Indian logistics market grew by 4%, and it is expected to grow at a CAGR of 5% form 2022-27, generating a market revenue of USD 633.6 billion by 2027. Future of transportation & logistics in India is expected to drive warehousing demand and industry trends in e-commerce logistics market are turning towards reverse logistics.

Moreover, the increasing purchase from cross-border and cheap shipping costs for consumers is anticipated to grow the market. Many players such as, Amazon provides free next-day delivery on orders over a certain threshold, as well as paid same day delivery to certain localities in the India.

On the other hand, numerous major elements will aid expansion, including the growing middle class-income population, high Internet penetration rate, robust transportation logistics network, advanced digital payment systems, expanding tech-savvy youth population, and strong government support.


Post-pandemic effect on India e-commerce Logistics Sector
The outbreak of the virus had a positive impact over the India e-commerce logistics sector. The E-commerce logistics players took several actions to maintain seamless operations at a difficult period when the supply chain was affected by prolonged lockdowns in a few other countries. In order to ensure the business's continuity, players expanded their service expansion in small towns and rural areas. Moreover, to reduce the danger of infection, e-commerce logistics players are using solutions like contactless deliveries, which is increasing demand for online transactions.

Further Key Findings of India e-commerce Logistics Report
 Increasing Government Initiatives: Several government initiatives have been implemented to encourage innovation, entrepreneurship, and a cashless economy, giving a boost to eCommerce development in the country. Indian Government to launch the Secured Logistics Document Exchange (SLDE) along with a calculator for Green House gas Emission to improve the ease of doing business, logistic efficiency, reduce the cost of logistics and promote the multi-modality and sustainability.

 Increasing Digitization: For manufacturers, traders, dealers, wholesalers, and small retailers during the past two years, embracing a digital and computerized supply chain ecosystem through platform-driven approaches has become essential for business growth. Indian consumers are increasingly adopting digital technology, creating a lucrative opportunity for ecommerce logistics firms.

 Increasing Smartphone Users: India is expected to have 820 million smartphone users out of the total population by the end of 2022. rural India witnessed a year-on-year growth of 36.2% in 2020 as opposed to 7.1% growth in urban India in the same period in terms of internet users. Smartphone penetration in rural India has risen from 9% in 2015 to 25.3% in 2020. These figures give rise to the increasing penetration of e-commerce in the economy where more than 3000 registered e-commerce sites are being operated.

 Large Number of Youth Population of India: India is a placed for 5th of the world’s youth population. This creates a demographic dividend to the nation and helps it to achieve the USD 5 trillion economy objective. The large youth population offers both the market and workforce to the e-commerce logistics industry. The youth are the drivers for innovation, entrepreneurship and diversity. India has more than 50% of population below the age 25. In 2020 the average age of the population was 29 in India.

Makreo Research has published a study titled “India E-commerce Logistics Market Performance and Future Outlook to 2027” is a detailed study that offers the reader to understand market performance of market size for logistics industry in India. On demand aspect, it is important to understand performance of E-commerce market in India and its outlook and on supply aspect we have studied E-commerce logistics service providers and annual shipments. The study is a combination of qualitative and quantitative assessment of the industry covering micro and macro level of assessment of the economy and other independent factors that are highly corelated with the E-commerce logistics market of India.


Report helps to answer following questions:
- How India E-commerce logistics industry is shaping up?
- What is the total market size for logistics industry in India and future of ecommerce logistics?
- What are the key challenges for the industry at present and post-pandemic effect on India e-commerce logistics?
- How E-commerce industry is performing and what is the future expected growth outlook?
- What is the average growth expected for the India E-commerce logistics market?
- How India E-commerce Logistics Companies have performed in the past?
- What are the major driving factors for the India E-commerce logistics market?
- What are the major industry trends in e-commerce logistics market?
- What are the prime mode of transportation for the E-commerce logistics market in India?
- Which mode of transportation account for highest stake in the India E-commerce logistics shipments?
- What is the expected future growth outlook for the India E-commerce logistics market?


To know more about the publication on India E-commerce logistics industry, please refer to the link
https://www.makreo.com/report/india-e-commerce-logistics-market-report


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Issued By Makreo Research and Consulting
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Navi Mumbai, Maharashtra - 410210, India
Country India
Categories Reports , Shipping , Transportation
Tags india ecommerce logistics market , india ecommerce logistics market research , india ecommerce logistics market forecast , india ecommerce logistics market report , india ecommerce logistics market analysis , india ecommerce logistics market size , india ecommerce logistics market revenue , india ecommerce logistics market growth
Last Updated October 21, 2022