Report Overview

An increasingly high demand for warehousing and storage solutions from thriving e-commerce sector, rising globalization of trade, growing outsourcing of logistics, and rapid urbanization and changing consumer demands are expected to drive the India Warehousing and Storage Market during the forecast period between 2024 and 2030.

India Warehousing and Storage Market – Industry Trends & Forecast Report, 2030

The India Warehousing and Storage Market size was estimated at USD 36.98 billion in 2023. During the forecast period between 2024 and 2030, the India Warehousing and Storage Market size is projected to grow at a CAGR of 16.22% reaching a value of USD 44.19 billion by 2030. A prominent driver of the market is the increasing growth in key application sectors such as manufacturing, retail, healthcare, construction, automotive, and technology. Also, the rising demand from the booming e-commerce sector is fueling the need for warehousing space. The growing popularity of frozen foods is driving the demand for refrigerated warehousing, as these products are convenient, healthy, and readily available. Technological advancements in IT and transportation, including wearables, sensors, and RFID tags, are also enhancing the efficiency of storage and transportation operations, positively impacting the market.

Warehousing and Storage – Overview

The Warehousing and Storage Market encompasses facilities used for the storage and accumulation of various goods, including finished products, raw materials, semi-finished goods, and items for import or export. This market ensures goods are available to end users as needed and maintains their condition, which is crucial for successful marketing. Warehousing supports continuous production by enabling businesses to store goods in anticipation of future demand, allowing for year-round production and sales aligned with market needs. The market is divided into three main categories: general warehousing and storage, farm product warehousing and storage, and refrigerated warehousing and storage. Effective warehousing is essential for smooth business operations and efficient inventory management.

India Warehousing and Storage Market

Growth Drivers

Rising Urbanization and Changing Consumer Demands

Rising urbanization and changing consumer demands have significantly impacted the India warehousing sector. The primary use of warehouses in agriculture, along with storage for pharmaceuticals, FMCG products, and white goods, has driven demand. The record food grain production in recent years has also contributed to this growth. The shift from unorganized to organized warehousing and increased participation of international players have further formalized the sector, although India still lags behind major economies in per capita warehousing space.

Challenges

Labor Shortages

Labor shortages are constraining the growth of the India Warehousing and Storage Market. Despite the sector's rapid expansion, the lack of skilled labor hampers operational efficiency and productivity. This challenge is exacerbated by rising demand from e-commerce and industrial sectors, leading to increased reliance on automation to mitigate labor deficits. Addressing these shortages is crucial for sustaining growth in this burgeoning market.

Impact of Escalating Geopolitical Tensions on India Warehousing and Storage Market

Geopolitical tensions can have a multifaceted impact on the India Warehousing and Storage Market. Uncertainty and instability resulting from geopolitical conflicts can disrupt supply chains, leading to delays in transportation and increased costs for warehousing operations. Furthermore, heightened tensions may deter foreign investment in the sector, limiting access to advanced technologies and impeding market growth. Businesses may adopt risk mitigation strategies, such as diversifying suppliers and increasing inventory levels, to navigate geopolitical uncertainties. Overall, maintaining stability and fostering diplomatic relations are essential for sustaining growth and resilience in the India Warehousing and Storage Market.

India Warehousing and Storage Market

Segmental Coverage

India Warehousing and Storage Market – By Type

By type, the India Warehousing and Storage Market is divided into General Warehousing & Storage, Refrigerated Warehousing & Storage, and Farm Product Warehousing & Storage segments. The general warehousing & storage segment holds the highest share in the India Warehousing and Storage Market by type. It encompasses a wide range of goods, including finished products, raw materials, and semi-finished goods, catering to diverse industries such as manufacturing, retail, and agriculture. Its popularity stems from its versatility and ability to accommodate various types of goods, making it indispensable in the supply chain. Additionally, the surge in e-commerce and consumer demand further drives the need for flexible storage solutions, consolidating the position of general warehousing as a cornerstone of the Indian logistics landscape.

India Warehousing and Storage Market – By Ownership

Based on ownership, the India Warehousing and Storage Market is Private Warehouses, Public Warehouses, and Bonded Warehouses segments. The private warehouses segment holds the highest share in the India Warehousing and Storage Market by ownership. Private businesses often establish private warehouses for their specific needs, strategically located to serve industrial and commercial purposes. These warehouses are highly adaptable, configured for product placement and storage based on the type of goods, and typically occupied by single, large businesses with significant warehousing requirements. Meanwhile, the public warehouses segment is expected to witness the fastest growth rate during the forecast period. Public warehouses, created by governments and available for private use, can be rented for professional or personal purposes. Utilized by manufacturers, wholesalers, exporters, importers, and government organizations, they are usually located near transportation lines. Public warehouses offer both short and long-term storage options, with costs determined by the pallets stored and square footage used.

India Warehousing and Storage Market – By End User Industry

Based on end-user industry, the India Warehousing and Storage Market is divided into Manufacturing, Consumer Goods, Food & Beverages, Retail, and Healthcare segments. The manufacturing segment holds the highest share in the India Warehousing and Storage Market by end user industry. Manufacturing organizations are increasing demand for outsourced warehousing services due to their operational and product development needs. This has led to greater logistical requirements for merchants and distributors to store raw materials and finished goods. Automotive logistics are also expanding, driven by rising car registrations and the need for organized shipping and storage of automotive parts. The shift in consumer purchasing behavior across various touchpoints, such as online and in-store, has created a demand for smarter warehouses. Retailers are integrating offline and online operations to reduce costs and boost productivity. Next-generation, technology-enhanced warehouses provide real-time visibility into assets, personnel, and transactions, benefiting various industries, particularly consumer goods manufacturers.

India Warehousing and Storage Market – By Region

Geographically, the India Warehousing and Storage Market is divided into North India, South India, East India, and West India regions. Presently, nearly 60% of India's modern warehousing capacity is concentrated in six major cities: Ahmedabad, Bangalore, Chennai, Mumbai, NCR, and Pune, with Hyderabad and Kolkata also being key markets. This concentration is due to industrial activity and large urban populations in these areas. Factors such as quality infrastructure and available labor will likely sustain these advantages.

Competitive Landscape

Major players operating in India Warehousing and Storage Market include Welspun Logistics Park, Adani Logistics Limited, SKYLOGISTICS, Vaughan Industries Limited, Varuna Group, ACR Logistics Limited, Everest Industrial Warehousing, Logwin India Pvt Ltd, and FedEx Supply Chain Solutions India. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2024 - Container Corporation of India (CONCOR) signed a Memorandum of Understanding (MoU) with Central Warehousing Corporation (CWC) to enhance logistics and warehousing in India. This strategic partnership aims to optimize supply chain management, improve customer service, and foster industry growth. By sharing infrastructure, technology, expertise, and resources, CONCOR and CWC will provide seamless, cost-effective logistics solutions, including First Mile Last Mile services. CONCOR operates 59 terminals nationwide and focuses on inland container transportation, cold storage, and warehousing.

• In February 2024 - The government announced its plans to establish storage infrastructure for agricultural commodities at approximately 65,000 primary agricultural credit societies (PACS) to reduce post-harvest losses and support farmers. NABARD is refinancing PACS at highly subsidized rates to facilitate this initiative. The aim is to integrate PACS godowns with the national food grain supply chain, enhancing market linkages and reducing handling and transportation costs. The project will diversify PACS's economic activities and generate additional revenue. Supported by various government schemes, this initiative is part of a broader effort to improve food grain storage and ensure food security across rural India.

Scope of the Report

By Type

• General Warehousing & Storage

• Refrigerated Warehousing & Storage

• Farm Product Warehousing & Storage

By Ownership

• Private Warehouses

• Public Warehouses

• Bonded Warehouses

By End User Industry

• Manufacturing

• Consumer Goods

• Food & Beverages

• Retail

• Healthcare

By Region

• North India

• South India

• East India

• West India