India 3PL

India 3PL

A 3PL is a logistic provider to the companies to ship their products domestically or internationally. India 3PL market is witnessing rapid growth owing to factors such as a large number of companies listing them on the online e-commerce platforms further inducing the demand for the transportation of goods. Furthermore, the government has also aligned its focus towards the adoption of policies that would be conducive to the development and expansion of third-party logistics services in India. After the COVID-19 pandemic customers in the tier-1 and tier-2 cities have extensively focused on e-commerce and quick commerce services for ease of delivery and choosing among a wide variety of options.

The India 3PL Market is expected to grow at a significant rate of around 7.95% during the forecast period (2024-2032). One of the key factors that have contributed to the growth of the India 3PL market is an expansion of the e-commerce business in the country. According to the Indian Brand Equity Foundation (IBEF), the e-commerce industry in the Indian context will reach USD 325 billion by the year 2030, whereas third-party logistics providers are anticipated to manage USD 17 billion between 2023-2030.

Additionally, India has a vast internet-using population that has fueled the demand for online goods demand. In 2023, India had 936.16 million internet subscribers including 350 million mature online users.

Considering the shifts the demand for online delivery services will further increase in the coming years/ With the rising number of internet users, growing e-commerce market, quick commerce, lucrative pricing, and festive season sales on online platforms, a wide number of options available to choose from more number of internet buyers are anticipated to join the suit and help the market expansion of India 3PL during 2023-2032.

• Based on Services the India 3PL market is segmented into domestic transportation management, international transportation management, value-added warehousing, and distribution. Of these domestic transportation management segment has held the major market share among all. Some of the factors such as increasing demand for domestic transportation of goods to tier-1, tier-2, and tier-3 cities, rising demand for online goods from the rural and urban centers, etc., have accentuated the need to expand the 3PL services to distant regions of the countries. This has also been supported by the rapid growth of the manufacturing, automobile, and e-commerce sectors which has supported the growth of the segment.
• Based on End users the India 3PL market is segmented into automobile, chemical, construction, consumer retail, energy, manufacturing, life sciences and healthcare, technology, and others. Of these manufacturing, automobile, and consumer retail have held a sizable market share due to increasing focus on manufacturing capacity expansion, e-commerce boom, and the automotive sector receiving a major push from the increased purchase.
• For a better understanding of the market adoption of the 3PL market, the market is analyzed based on its country-wide presence in regions such as North India, East India, West India, and South India. North India has held a sizable market share among these due to rising urban centers, customers requiring online delivery of goods, and automotive companies using large logistic fleets to ship their vehicles from major manufacturing units to distant parts of the country. Furthermore, the country is also focusing on expanding its manufacturing capability in order to tap the growth potential in the domestic and international markets. Considering these shifts the North India region would further exhibit a higher growth rate in the coming years.
• Some of the major players operating in the market include All Cargo Logistics Limited, DHL Supply Chain, Future Enterprises Limited, Gati Express & Supply Chain Pvt Ltd, GS Logistics Pvt Ltd, Kuhene Nagel Private Limited, Mahindra Logistics Ltd, Nitco Logistics, DB Schenker Ltd, and UPS.