Report Overview

A spurring demand for cost-effective and efficient logistics solutions from the thriving e-commerce and online retail, a growing emphasis on supply chain optimization, and the government's initiatives to improve infrastructure and ease regulations in the logistics sector are propelling the growth of the India Third-Party Logistics (3PL) Market during the forecast period between 2023 and 2029.

India Third-Party Logistics (3PL) Market – Industry Trends & Forecast Report, 2029

India third-party logistics (3PL) market size was estimated at USD 58.63 billion in 2022. During the forecast period between 2023 and 2029, the size of India third-party logistics (3PL) market is projected to grow at a CAGR of 7.74% reaching a value of USD 94.22 billion by 2029. The major factor driving the growth of the India third-party logistics (3PL) market is increasing adoption of 3PL services across various industries, such as e-commerce, retail, automotive, and pharmaceuticals. The rise of e-commerce has particularly fueled the demand for efficient logistics solutions. Also, there is a growing emphasis on technology integration in 3PL operations, including the implementation of automation, artificial intelligence, and cloud-based platforms for improved tracking and real-time visibility. The government's supportive initiatives, such as the implementation of the Goods and Services Tax (GST), have helped in streamlining logistics operations, leading to enhanced efficiency and cost savings. There is also a surge in demand for value-added services, such as packaging, reverse logistics, and supply chain consulting, driving the growth of the India third-party logistics (3PL) market.

India Third-Party Logistics (3PL) Market - Overview

Third Party Logistics (3PL) refers to the outsourcing of logistics and supply chain management activities to a specialized external service provider. Companies that engage in 3PL services rely on these providers to handle various aspects of their supply chain, such as transportation, warehousing, inventory management, and order fulfillment. 3PL providers offer expertise, infrastructure, and resources to streamline and optimize logistics operations, allowing businesses to focus on their core competencies. They often leverage technology and networks to provide efficient and cost-effective solutions. 3PL services are beneficial for companies seeking to enhance operational efficiency, reduce costs, improve customer service, and gain a competitive edge in the market.

Growth Drivers

Booming E-commerce Accelerates Growth of India's 3PL Market

In recent years, the e-commerce sector in India has witnessed an unprecedented boom, fueling the rapid expansion of the country's third-party logistics (3PL) market. As more consumers embrace online shopping, there has been a surge in demand for efficient and reliable logistics services to manage the complex supply chain operations involved. Third-party logistics providers offer end-to-end solutions, including warehousing, inventory management, transportation, and last-mile delivery, enabling e-commerce companies to focus on their core business activities. This symbiotic relationship between e-commerce and 3PL has propelled the growth of the Indian market, attracting investments, technological advancements, and strategic partnerships, thereby facilitating the seamless movement of goods and stimulating overall industry growth.

Restraints

Infrastructure Challenges

In recent years, India's third-party logistics (3PL) market has witnessed substantial growth driven by increasing e-commerce activities and the need for efficient supply chain management. However, the sector is now grappling with significant infrastructure challenges. The inadequate transportation network, congested roadways, and limited warehousing facilities pose obstacles to the seamless functioning of 3PL services in the country. These constraints lead to delays, increased costs, and inefficiencies in the logistics operations, affecting both service providers and end-users. To sustain the growth momentum and unlock the full potential of the 3PL market, India must invest in improving infrastructure, expanding transportation networks, and developing modern warehousing facilities across the country.

Impact of COVID-19 on India Third-Party Logistics (3PL) Market

The COVID-19 pandemic adversely affected the India third-party logistics (3PL) market, causing disruptions across the supply chain. With nationwide lockdowns, restricted movement of goods, and reduced industrial activities, the demand for 3PL services witnessed a sharp decline. The logistics industry faced challenges, such as labor shortages, transportation constraints, and operational complexities. The shifting consumer behavior towards online shopping and e-commerce resulted in a surge in demand for last-mile delivery and warehousing services. 3PL providers had to swiftly adapt to new safety protocols, implement contactless delivery, and enhance their digital capabilities to ensure business continuity and meet changing customer needs. The pandemic has reshaped the landscape of the India 3PL market, emphasizing the importance of agility and resilience.

India Third-Party Logistics (3PL) Market

Segmental Coverage

India Third-Party Logistics (3PL) Market – By Service

On the basis of service, India third-party logistics (3PL) market is divided into Dedicated Contract Carriage (DCC)/Freight forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), and Value-added Logistics Services (VALs) segments. The largest segment in the India third-party logistics (3PL) market is Warehousing & Distribution (W&D). The W&D segment encompasses the storage, handling, and distribution of goods, catering to the needs of various industries. With the growth of e-commerce and the expansion of supply chain networks, the demand for efficient warehousing and distribution services has increased significantly. Companies rely on 3PL providers to manage their inventory, streamline logistics operations, and ensure timely delivery. The W&D segment plays a crucial role in optimizing supply chains, reducing costs, and improving customer satisfaction, making it the largest segment in the India 3PL market.

India Third-Party Logistics (3PL) Market – By End Use

Based on end use, the India third-party logistics (3PL) market is divided into Manufacturing, Retail, Healthcare, and Automotive segments. The India third-party logistics (3PL) market is comprised of several segments, including manufacturing, retail, healthcare, and automotive. Among these segments, the largest one in terms of size and scope is the manufacturing sector. The manufacturing segment accounts for a significant portion of the 3PL market in India, driven by the country's robust manufacturing industry. With the rise of e-commerce and globalization, manufacturers require efficient and streamlined logistics solutions to manage their supply chains effectively. This has led to an increased demand for third-party logistics services in the manufacturing sector, making it the largest segment within the Indian 3PL market.

India Third-Party Logistics (3PL) Market – By Region

Geographically, India third-party logistics (3PL) market is divided into North India, South India, East India, and West India regions. Each region has its unique characteristics and demands. North India, with its prominent cities like Delhi and Gurgaon, holds a significant share due to its strategic location and robust infrastructure. South India, encompassing major hubs, such as Chennai and Bengaluru, benefits from a strong manufacturing base and extensive port connectivity. East India, including Kolkata and Bhubaneswar, offers tremendous potential with its emerging industrial clusters and access to major ports. West India, comprising Mumbai and Ahmedabad, leverages its proximity to key commercial centers and advanced transportation networks.

Competitive Landscape

Major players in the India third-party logistics (3PL) market include DHL Supply Chain India Pvt Ltd, Blue Dart Express Ltd, FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd, Gati Ltd, Mahindra Logistics Ltd, Safexpress Pvt Ltd, Allcargo Logistics Ltd, Transport Corporation of India Ltd (TCI), Xpressbees Logistics, and Ecom Express Pvt Ltd. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In February 2020 - Groupe ADP purchased a 49% stake in GMR Airports - a unit of India’s GMR Infrastructure (GIL), for INR 107.8 billion.

• In September 2019 - FM Logistics, a France-based company, announced an investment of USD 30 million for the development of a 31-acre multi-client logistics facility in Jhajjar, Haryana, India. The warehouse is expected to have a storage capacity of 1,00,000 pallet positions and a dedicated area for co-packing and other value-added services.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2022
	Base Year – 2022
	Estimated Year – 2023
	Forecast Period – 2023–2029
Facts Covered	Revenue in USD Billion
Market Coverage	North India, South India, East India, West India
Product/ Service Segmentation	Service, End Use, Region
Key Players	DHL Supply Chain India Pvt Ltd, Blue Dart Express Ltd, FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd, Gati Ltd, Mahindra Logistics Ltd, Safexpress Pvt Ltd, Allcargo Logistics Ltd, Transport Corporation of India Ltd (TCI), Xpressbees Logistics, Ecom Express Pvt Ltd

 

 

By Service

• Dedicated Contract Carriage (DCC)/Freight Forwarding

• Domestic Transportation Management (DTM)

• International Transportation Management (ITM)

• Warehousing & Distribution (W&D)

• Value-added Logistics Services (VALs)

By End Use

• Manufacturing

• Retail

• Healthcare

• Automotive

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Third-Party Logistics (3PL) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rapidly growing e-commerce sector
         2. Infrastructure development
      2. Restraints
         1. Fragmented market with numerous small and regional players
         2. Lack of skilled workforce
      3. Opportunities
         1. Increasing adoption of technology
         2. Expansion of temperature control cold chain logistics
      4. Challenges
         1. Complex regulatory environment
         2. Inefficient last-mile delivery
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Third-Party Logistics (3PL) Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Service
         1. Dedicated Contract Carriage (DCC)/Freight Forwarding
         2. Domestic Transportation Management (DTM)
         3. International Transportation Management (ITM)
         4. Warehousing & Distribution (W&D)
         5. Value-added Logistics Services (VALs)
      2. By End Use
         1. Manufacturing
         2. Retail
         3. Healthcare
         4. Automotive
         5. Others
      3. By Region
         1. North India
         2. South India
         3. East India
         4. West India
5. North India Third-Party Logistics (3PL) Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Service
      2. By End Use
6. South India Third-Party Logistics (3PL) Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Service
      2. By End Use
7. East India Third-Party Logistics (3PL) Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Service
      2. By End Use
8. West India Third-Party Logistics (3PL) Market
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Service
      2. By End Use
9. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. India Third Party Logistics Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
10. Impact of Covid-19 on India Third-Party Logistics (3PL) Market
11. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. DHL Supply Chain India Pvt Ltd
    2. Blue Dart Express Ltd
    3. FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd
    4. Gati Ltd
    5. Mahindra Logistics Ltd
    6. Safexpress Pvt Ltd
    7. Allcargo Logistics Ltd
    8. Transport Corporation of India Ltd (TCI)
    9. Xpressbees Logistics
    10. Ecom Express Pvt Ltd
    11. Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

 

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

 

List of Figures

 

Figure 1       India Third-Party Logistics (3PL) Market Segmentation

Figure 2       India Third-Party Logistics (3PL) Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2021

Figure 4       India Third-Party Logistics (3PL) Market Size, By Value (USD Billion), 2019–2029

Figure 5       India Third-Party Logistics (3PL) Market Share, By Service, By Value, 2019–2029

Figure 7       India Third-Party Logistics (3PL) Market Share, By End Use, By Value, 2019–2029

Figure 8       India Third-Party Logistics (3PL) Market Share, By Region, By Value, 2019–2029

Figure 10     North India Third-Party Logistics (3PL) Market Size, By Value (USD Billion), 2019–2029

Figure 11     North India Third-Party Logistics (3PL) Market Share, By Service, By Value, 2019–2029

Figure 12     North India Third-Party Logistics (3PL) Market Share, By End Use, By Value, 2019–2029

Figure 13     South India Third-Party Logistics (3PL) Market Size, By Value (USD Billion), 2019–2029

Figure 14     South India Third-Party Logistics (3PL) Market Share, By Service, By Value, 2019–2029

Figure 15     South India Third-Party Logistics (3PL) Market Share, By End Use, By Value, 2019–2029

Figure 16     East India Third-Party Logistics (3PL) Market Size, By Value (USD Billion), 2019–2029

Figure 17     East India Third-Party Logistics (3PL) Market Share, By Service, By Value, 2019–2029

Figure 18     East India Third-Party Logistics (3PL) Market Share, By End Use, By Value, 2019–2029

Figure 19     West India Third-Party Logistics (3PL) Market Size, By Value (USD Billion), 2019–2029

Figure 20     West India Third-Party Logistics (3PL) Market Share, By Service, By Value, 2019–2029

Figure 21     West India Third-Party Logistics (3PL) Market Share, By End Use, By Value, 2019–2029 

 

 

List of Tables

 

Table 1        India Third-Party Logistics (3PL) Market Size, By Service, By Value, 2019–2029

Table 2        India Third-Party Logistics (3PL) Market Size, By End Use, By Value, 2019–2029

Table 3        India Third-Party Logistics (3PL) Market Size, By Region, By Value, 2019–2029

Table 4        North India Third-Party Logistics (3PL) Market Size, By Service, By Value, 2019–2029

Table 5        North India Third-Party Logistics (3PL) Market Size, By End Use, By Value, 2019–2029

Table 6        South India Third-Party Logistics (3PL) Market Size, By Service, By Value, 2019–2029

Table 7        South India Third-Party Logistics (3PL) Market Size, By End Use, By Value, 2019–2029

Table 8        East India Third-Party Logistics (3PL) Market Size, By Service, By Value, 2019–2029

Table 9        East India Third-Party Logistics (3PL) Market Size, By End Use, By Value, 2019–2029

Table 10      West India Third-Party Logistics (3PL) Market Size, By Service, By Value, 2019–2029

Table 11      West India Third-Party Logistics (3PL) Market Size, By End Use, By Value, 2019–2029

Table 12      DHL Supply Chain India Pvt Ltd Company Overview

Table 13      DHL Supply Chain India Pvt Ltd Financial Overview

Table 14      Blue Dart Express Ltd Company Overview

Table 15      Blue Dart Express Ltd Financial Overview

Table 16      FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd Company Overview

Table 17      FedEx Express Transportation and Supply Chain Services (India) Pvt Ltd Financial Overview

Table 18      Gati Ltd Company Overview

Table 19      Gati Ltd Financial Overview

Table 20      Mahindra Logistics Ltd Company Overview

Table 21      Mahindra Logistics Ltd Financial Overview

Table 22      Safexpress Pvt Ltd Company Overview

Table 23      Safexpress Pvt Ltd Financial Overview

Table 24      Allcargo Logistics Ltd Company Overview

Table 25      Allcargo Logistics Ltd Financial Overview

Table 26      Transport Corporation of India Ltd (TCI) Company Overview

Table 27      Transport Corporation of India Ltd (TCI) Financial Overview

Table 28      Xpressbees Logistics Company Overview

Table 29      Xpressbees Logistics Financial Overview

Table 30      Ecom Express Pvt Ltd Company Overview

Table 31      Ecom Express Pvt Ltd Financial Overview

Table 32      Other Prominent Players Company Overview

Table 33      Other Prominent Players Financial Overview