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Indian Warehouse Market to Reach INR 2,069.6 Billion by 2027, Growth Stimulated by Tax Reforms

Published on Feb 05, 2019

According to the latest report by IMARC Group, titled “Indian Warehouse Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the Indian warehouse market size reached INR 1,113 Billion in 2021. The warehouse industry in India is currently at a nascent stage, however, the development of the country as a global manufacturing hub has helped in its expansion. Additionally, the burgeoning e-commerce, retail, IT, telecommunications, pharmaceuticals and textiles industries have created a substantial demand for warehouses with value-added services like reverse logistics, packaging, labeling and barcoding. In line with this, the formerly concrete or low-grade steel godowns are now being replaced by pre-engineered warehouses. The increasing private and foreign investments in infrastructure development have further helped in turning warehouses into sophisticated stockrooms with advanced, real-time tracking mechanisms and other state-of-the-art facilities.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Market Trends:

The establishment of the Free Trade and Warehousing Zone by the Indian Government has helped in increasing warehousing activities, developing the infrastructure and facilitating import and export services in the country. In addition, the introduction of logistics-friendly infrastructure and tax regimes, such as the Goods and Services Tax, have simplified interstate taxation and stimulated structural changes in operation dynamics for the warehouse market. These reforms have helped companies in substantially reducing logistics costs and attracted international players to enter the market via acquisitions, mergers and joint ventures. Apart from this, recent technological advancements in the automation industry have led to the adoption of smart warehouses in India. Goods are now handled with minimum human intervention in these warehouses which improves speed, productivity and efficiency. On account of these factors, the Indian warehouse market is projected to reach a value of INR 2,069.6 Billion by 2027, registering a CAGR of 11.9% during 2022-2027.

Market Summary:

  • Based on sector, the market has been segmented into the industrial and agriculture sectors.
  • On the basis of ownership, public warehouses dominate the market, accounting for the majority of the overall market share.
  • The market has also been segregated on the basis of the type of commodity stored into general, specialty and refrigerated warehouses.
  • The competitive landscape of the Indian warehouse industry has also been examined with the profiles of the key players operating in the market.

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