India Third Party Logistics Market Introduction and Overview
According to SPER Market Research, the is estimated to reach USD 75.99 billion by 2033 with a CAGR 7.51%.
The report includes an in-depth analysis of the India Third Party Logistics Market, including market size and trends, product mix, distribution channels, and supplier analysis. Third-party logistics is the process by which a manufacturer outsources tasks relating to logistics, distribution, and customs administration that are critical to the supply chain. A 3PL provider provides specialised services such as inventory management, transportation management and brokerage, warehousing, consolidation, distribution and fulfilment, international logistics management (air and ocean freight forwarding, customs brokerage), and so on.
- Yusen Logistics Co. Ltd. formed a strategic alliance with Pickle Robot Company, a market leader in physical Artificial Intelligence (AI) and robotic automation, in December 2023. The partnership would begin with the introduction of Pickle Unload solutions at Yusen Logistics Co. Ltd.'s Contract Logistics Group trans-loading business in Long Beach, California. Yusen Logistics Co. Ltd. will be able to reduce its employees' physical workload and improve service dependability by adopting the cutting-edge solution. The agreement showed Yusen Logistics Co. Ltd.'s commitment to implementing the most sophisticated robotics automation solutions in its facilities, with the ultimate goal of offering superior service to its valued clients.
Market Opportunities and Challenges
Opportunities: The implementation of tax reforms and initiatives for third-party logistics in India is significantly driving industry growth. India's third-party logistics business is undergoing a transformation as a result of several reforms and efforts. For example, the GST is one of the major tax reforms implemented by the Indian government. Previously, before the advent of GST, businesses built and managed different warehouses in each state of operation to avoid cross-border tax. This made supply networks more expensive and inefficient, leading in the growth of an unorganised logistics sector. The implementation of GST helped to decrease price disparities between states and make tax responsibilities uniform throughout India.
Challenges: The high operational costs are a significant barrier to market growth. Transportation costs account for a significant portion of logistics expenditures. Fuel price fluctuation in India contributes to rising transportation expenses. As gasoline prices rise, logistics service providers charge their consumers to make a profit. Customers are also putting further pressure on logistics service providers in the market to lower their charges. Customer demand for cheaper rates increases pricing pressure on logistics service providers. Furthermore, India's insufficient logistics infrastructure increases operational expenses. Furthermore, India's unorganised and inefficient logistics supply chain incurs a variety of indirect costs, including inventory carrying costs as well as damage and loss to items in transit. These incidents are quite common in the Indian logistics sector and account for a significant portion of operational expenditures. As a result, these factors are projected to limit the growth of the 3PL market in India throughout the forecast period.
Market Competitive Landscape
The market is relatively fragmented, with a significant number of domestic and international businesses, including DHLSupply Chain, Future Supply Chain, Gati Litmited, GS Logistics, Kuehne Nagel Private Limited, Mahindra Logistics, Nitco Logistics, Schenker India, TVS Supply Chain Solutions, UPS and All Cargo Logistics Limited as key participants. India is growing as a storage industry, garnering considerable investment from global and private equity investors during the last two years.
Scope of the report:
| Report Metric | Details |
| Market size available for years | 2020-2033 |
| Base year considered | 2023 |
| Forecast period | 2024-2033 |
| Segments covered | By Services, By End User
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| Regions covered | Eastern Region, Northern Region, Southern Region, Western Region
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| Companies Covered | All Cargo Logistics Limited, DHLSupply Chain, Future Supply Chain, Gati Litmited, GS Logistics, Kuehne Nagel Private Limited, Mahindra Logistics, Nitco Logistics, Schenker India, TVS Supply Chain Solutions, UPS.
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COVID-19 Impact on India Third Party Logistics Market
The COVID-19 epidemic had a negative impact on the India third-party logistics (3PL) business, disrupting the entire supply chain. With widespread lockdowns, restricted transportation of commodities, and reduced industrial activity, demand for 3PL services fell sharply. Labour shortages, transportation constraints, and operational difficulties were among the challenges confronting the logistics business. The shift in consumer behaviour to online shopping and e-commerce has resulted in an increase in demand for last-mile delivery and warehousing services. 3PL providers had to quickly adapt to new safety rules, integrate contactless delivery, and improve their digital skills in order to maintain company continuity and fulfil evolving consumer expectations. The epidemic has transformed the landscape of India's 3PL sector, emphasising the value of agility and resilience.
Key Target Audience:
- E-commerce Companies
- Retailers
- Manufacturers
- Automotive Industry
- Pharmaceutical and Healthcare Companies
- FMCG (Fast-Moving Consumer Goods) Companies
- Food and Beverage Industry
- Information Technology and Electronics Companies
- Textile and Apparel Industry
- Construction and Infrastructure Companies
Our in-depth analysis of the India Third Party Logistics Market includes the following segments:
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By Services:
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Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
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By End User:
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Automobile
Chemicals
Construction
Consumer and Retail
Energy
Manufacturing
Life Sciences and Healthcare
Technology
Others
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Key Topics Covered in the Report:
- India Third Party Logistics Market Size (FY’2024-FY’2033)
- Overview of India Third Party Logistics Market
- Segmentation of India Third Party Logistics Market By Services (Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution)
- Segmentation of India Third Party Logistics Market By End User (Automobile, Chemicals, Construction, Consumer and Retail, Energy, Manufacturing, Life Sciences and Healthcare, Technology, Others)
- Statistical Snap of India Third Party Logistics Market
- Expansion Analysis of India Third Party Logistics Market
- Problems and Obstacles in India Third Party Logistics Market
- Competitive Landscape in the India Third Party Logistics Market
- Impact of COVID-19 and Demonetization on India Third Party Logistics Market
- Details on Current Investment in India Third Party Logistics Market
- Competitive Analysis of India Third Party Logistics Market
- Prominent Players in the India Third Party Logistics Market
- SWOT Analysis of India Third Party Logistics Market
- India Third Party Logistics Market Future Outlook and Projections (FY’2024-FY’2033)
- Recommendations from Analyst
1. Introduction
1.1. Scope of the report
1.2. Market segment analysis
2. Research Methodology
2.1. Research data source
2.1.1. Secondary Data
2.1.2. Primary Data
2.1.3. SPER’s internal database
2.1.4. Premium insight from KOL’s
2.2. Market size estimation
2.2.1. Top-down and Bottom-up approach
2.3. Data triangulation
3. Executive Summary
4. Market Dynamics
4.1. Driver, Restraint, Opportunity and Challenges analysis
4.1.1. Drivers
4.1.2. Restraints
4.1.3. Opportunities
4.1.4. Challenges
4.2. COVID-19 Impacts of the India Third Party Logistics Market
5. Market variable and outlook
5.1. SWOT Analysis
5.1.1. Strengths
5.1.2. Weaknesses
5.1.3. Opportunities
5.1.4. Threats
5.2. PESTEL Analysis
5.2.1. Political Landscape
5.2.2. Economic Landscape
5.2.3. Social Landscape
5.2.4. Technological Landscape
5.2.5. Environmental Landscape
5.2.6. Legal Landscape
5.3. PORTER’s Five Forces
5.3.1. Bargaining power of suppliers
5.3.2. Bargaining power of buyers
5.3.3. Threat of Substitute
5.3.4. Threat of new entrant
5.3.5. Competitive rivalry
5.4. Heat Map Analysis
6. Competitive Landscape
6.1. India Third Party Logistics Market Manufacturing Base Distribution, Sales Area, Product Type
6.2. Mergers & Acquisitions, Partnerships, Product Launch, and Collaboration in India Third Party Logistics Market
7. India Third Party Logistics Market, By Services (USD Million) 2020-2033
7.1. India Third Party Logistics Market Size, Share and Forecast, By Services, 2020-2026
7.2. India Third Party Logistics Market Size, Share and Forecast, By Services, 2027-2033
7.3. Domestic Transportation Management
7.4. International Transportation Management
7.5. Value-added Warehousing and Distribution
8. India Third Party Logistics Market, By End User (USD Million) 2020-2033
8.1. India Third Party Logistics Market Size, Share and Forecast, By End User, 2020-2026
8.2. India Third Party Logistics Market Size, Share and Forecast, By End User, 2027-2033
8.3. Automobile
8.4. Chemicals
8.5. Construction
8.6. Consumer and Retail
8.7. Energy
8.8. Manufacturing
8.9. Life Sciences and Healthcare
8.10. Technology
8.11. Others
9. India Third Party Logistics Market Forecast, 2020-2033 (USD Million)
9.1. India Third Party Logistics Market Size and Market Share
10. India Third Party Logistics Market, By Region, 2020-2033 (USD Million)
10.1. India Third Party Logistics Market Size and Market Share By Region (2020-2026)
10.2. India Third Party Logistics Market Size and Market Share By Region (2027-2033)
10.3. Eastern Region
10.4. Northern Region
10.5. Southern Region
10.6. Western Region
11. Company Profile
11.1. All Cargo Logistics Limited
11.1.1. Company details
11.1.2. Financial outlook
11.1.3. Product summary
11.1.4. Recent developments
11.2. DHLSupply Chain
11.2.1. Company details
11.2.2. Financial outlook
11.2.3. Product summary
11.2.4. Recent developments
11.3. Future Supply Chain (FSC)
11.3.1. Company details
11.3.2. Financial outlook
11.3.3. Product summary
11.3.4. Recent developments
11.4. Gati Litmited
11.4.1. Company details
11.4.2. Financial outlook
11.4.3. Product summary
11.4.4. Recent developments
11.5. GS Logistics
11.5.1. Company details
11.5.2. Financial outlook
11.5.3. Product summary
11.5.4. Recent developments
11.6. Kuehne Nagel Private Limited
11.6.1. Company details
11.6.2. Financial outlook
11.6.3. Product summary
11.6.4. Recent developments
11.7. Mahindra Logistics
11.7.1. Company details
11.7.2. Financial outlook
11.7.3. Product summary
11.7.4. Recent developments
11.8. Nitco Logistics
11.8.1. Company details
11.8.2. Financial outlook
11.8.3. Product summary
11.8.4. Recent developments
11.9. Schenker India
11.9.1. Company details
11.9.2. Financial outlook
11.9.3. Product summary
11.9.4. Recent developments
11.10. TVS Supply Chain Solutions
11.10.1. Company details
11.10.2. Financial outlook
11.10.3. Product summary
11.10.4. Recent developments
11.11. UPS
11.11.1. Company details
11.11.2. Financial outlook
11.11.3. Product summary
11.11.4. Recent developments
11.12. Others
12. Conclusion
13. List of Abbreviations
14. Reference Links