India Freight and Logistics Market, By Function (Freight Transport, Freight Forwarding, CEP Services, Warehousing); By End User Industry (Agriculture, Fishing & Forestry, Construction, Manufacturing, Oil & Gas, Mining & Quarrying, Wholesale & Retail Trade

India Freight and Logistics Market Size Expands at Significant CAGR of 9.24% to Touch USD 490 Billion by 2030

India Freight and Logistics Market is flourishing because of an increasing demand for freight and logistics services and solutions from thriving e-commerce sector, government’s supportive initiatives, and new-age startups in the market.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India Freight and Logistics Market size at USD 288.18 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the India Freight and Logistics Market size to grow at a significant CAGR of 9.24% reaching a value of USD 489.64 billion by 2030. Major growth drivers for the India Freight and Logistics Market include the booming e-commerce industry and the rising retail sales market. The sector is dynamically transforming, embracing technological advancements and infrastructural developments. Policy reforms, including e-way bills, fast-tags, e-invoicing, and GPS-based toll collection, have been implemented by the government, driving evolution. The aftermath of the COVID-19 pandemic has accelerated the shift to digitization and contactless operations in the traditional logistics industry. The "Make in India" initiative's envisioned manufacturing growth necessitates heightened logistical efficiency. The Multi-Modal Logistics Parks (MMLPs) policy aims to enhance logistics, reduce costs, minimize pollution, and facilitate global trade. Government emphasis on competition, reduced rates, and technological advancements strengthens key sectors, fostering robust growth in freight and logistics, especially in agriculture, retail, and manufacturing. The growth is further evident in the sector's significant influence on freight forwarding, warehousing, courier parcel, express, and value-added services markets. Simultaneously, the e-commerce sector's surge, driven by payment platforms like Amazon Pay, Paytm, GPay, and innovative delivery applications, is expected to propel the India Freight and Logistics Market's expansion over the forecast period. However, infrastructure gaps, regulatory challenges, and high operational costs are anticipated to restrain the overall market growth during the period in analysis.

Impact of COVID-19 on India Freight and Logistics Market

COVID-19 pandemic adversely affected the India Freight and Logistics Market. Stringent lockdown measures had led to 65–70% of loaded vehicles being stranded near state borders. Challenges in unloading critical goods due to labor shortages exacerbated the situation. Intra-state cargo movement faced fewer hurdles compared to inter-state movements, with a notable drop in imports. Seaports were severely affected, with vessels quarantined, containers stuck due to labor shortages, and customs activities hampered. Short-distance transport of raw materials was limited by workforce issues, leading to plant closures. Transporters prioritized safety measures, but the industry anticipated delays, potential freight rate increases, and a gradual return to normalcy over 2-3 months post-lockdown. However, the resilience of the logistics industry, coupled with strategic measures, eventually led to a positive rebound and recovery.

India Freight and Logistics Market – By Mode of Transport

Based on mode of transport, the India Freight and Logistics Market is divided Road, Rail, Air, and Sea segments. The road segment is expected to hold the highest share in the India Freight and Logistics Market by mode of transport during the forecast period. India's transportation landscape is predominantly influenced by the road sector, contributing 3.75% to the GDP. In 2021, the road transportation services took the lead, contributing over INR 3 trillion (USD 36.3 billion) in gross value added (GVA), marking a decrease from the previous fiscal year. Communication and broadcast services followed, with a GVA of approximately INR 2.2 trillion (USD 26.62 billion). The logistics sector plays a pivotal role in facilitating seamless domestic and international goods and services flow, involving established domestic entities, global industry leaders, postal service express divisions, and emerging startups focused on e-commerce deliveries. Over 50% of freight and 90% of passenger traffic in India are handled by the dominant road sector, driven by government and private investments, rising exports, growing FMCG sector, and increased disposable incomes. The transportation industry's growth, constituting 3.75% of the GDP, is further supported by infrastructure advancements, allowing India to emerge as a major manufacturing hub in Asia in 2022. Improved rail transportation with faster transit times has influenced inventory models positively. The road transport sector experienced price improvements in December 2021, despite a decline in demand from the consumer goods sector, showcasing resilience and adaptability within the industry.

Competitive Landscape

Major players operating in the India Freight and Logistics Market include AllCargo Logistics Limited, Blue Dart Express Ltd, DB Schenker, Delhivery, Deutsche Post DHL Group, FedEx, Kuehne + Nagel, Mahindra Logistics, Safexpress Pvt Ltd, and VRL Logistics. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Freight and Logistics Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Freight and Logistics Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.