India Logistics Market Growth, Top Companies and Analysis Report

India Logistics Market Summary:

The India logistics market size was valued at USD 228.4 Billion in 2024 and is projected to reach USD 428.7 Billion by 2033. The market in India is estimated to grow at a CAGR of 6.50% from 2025-2033. The market growth is attributed to the growing e-commerce, infrastructure development, rising demand for cold chain logistics, increasing international trade, adoption of digital technologies, expansion of manufacturing and retail sectors, improved warehousing solutions, and greater focus on supply chain efficiency.

Market Insights:

• Based on region, West and Central India dominate the market in 2024
• On the basis of model type, 3PL leads the market in 2024.
• Based on the transportation mode, roadways dominate the market in 2024.
• On the basis of end use, manufacturing holds the largest share in the market in 2024.

Market Size and Forecast:

• 2024 Market Size: USD 228.4 Billion
• 2033 Projected Market Size: USD 428.7 Billion
• CAGR (2025-2033): 6.50%
• West and Central India: Largest Region in 2024

Logistics is a vital component of modern business operations that encompasses the management, planning, and execution of the flow of goods, information, and resources from the point of origin to the final destination. It optimizes the efficient storage and movement of goods, services, and information, all customized to satisfy customer demands in a cost-effective manner. It includes limited to order fulfillment, fleet and inventory management, warehousing, handling of materials, and inbound and outbound transportation. It is essential in overseeing and tracing data pertaining to space utilization, work schedules, order placements, and the successful delivery of diverse products. It also serves to enhance inventory control, customer service, the secure transit of voluminous packaging while preventing damage or spillage, expedited product deliveries, and the efficient transfer of large quantities of goods.

The market is primarily driven by the growing e-commerce sector. In addition, the increasing number of online retail transactions is escalating demand for efficient last-mile delivery services for optimizing digital commerce operations, thus influencing market growth. Moreover, the introduction of user-friendly return and refund policies by diverse e-commerce platforms is escalating the demand for reverse logistics, supported by flexible services such as tracking capabilities, which represents another major growth-inducing factor. Besides this, leading players are using advanced technology solutions, including real-time tracking, predictive analytics, and sophisticated functionalities, to streamline supply chains and cater to evolving customer demands, thus propelling market growth. Along with this, the widespread adoption of eco-friendly logistics solutions, the rise of trade agreements, and increased consumer spending power are accelerating market growth. According to the logistics industry analysis India, the integration of advanced technologies such as biometrics, global positioning system (GPS), and autonomous vehicles with logistics systems is expected to provide a positive thrust to the market growth.

India Logistics Market Trends and Growth:

E-commerce Growth and Digital Adoption

The rapid expansion of the e-commerce sector is a primarily driving the growth of the logistics industry in India. With the sector expected to reach USD 650.4 Billion by 2033 , logistics companies are experiencing increased demand for last-mile delivery, warehousing, and supply chain management. Digital advancements, including AI-driven route optimization and real-time tracking, are further enhancing efficiency. The rise of quick-commerce platforms like Blinkit and Zepto has also accelerated demand for ultra-fast deliveries, necessitating investments in hyperlocal logistics and warehousing infrastructure.

Government Initiatives and Infrastructure Development

Large-scale government plans like the Gati Shakti National Master Plan and the Bharatmala and Sagarmala projects are redefining India's logistics ecosystem. The logistics sector spending, which is around 13-14% of GDP now, is likely to come down to 8-10% with infrastructure development. The National Logistics Policy (NLP) seeks to develop an integrated and technologically driven logistics ecosystem, improving multimodal connectivity and turnaround time at key ports.

Rising Demand for Third-Party Logistics (3PL) and Warehousing

The increasing reliance on third-party logistics providers is driving Indian logistics market expansion, particularly in sectors like retail, pharmaceuticals, and automotive. The Indian 3PL market is projected to grow at a CAGR of over 14% from 2025 - 2033. According to industry reports, the demand for contemporary warehousing, especially Grade A facilities, is rapidly increasing and is expected to hit around 1.2 billion square feet by 2027. The expansion of cold chain logistics, driven by the pharmaceutical and food industries, is also contributing significantly to sector growth.

Growth in Manufacturing and Industrial Production

The growth of domestic production, spurred by the "Make in India" program and Production Linked Incentives (PLI) schemes, is heavily driving logistics demand. The Indian manufacturing industry is expected to add $1 trillion to the economy by 2025, propelling the demand for effective supply chain networks. Growing foreign direct investment (FDI) in industries like electronics, automotive, and textiles is also driving demand for logistics services, particularly for the transportation of raw materials, inventory management, and distribution networks across urban and rural markets.

Adoption of Artificial Intelligence (AI) and Machine Learning (ML) Technologies

Artificial intelligence (AI) and machine learning (ML) are expanding the logistics market size in India. AI-based solutions such as demand forecasting and route optimization assist in making operations smoother, cutting costs, and reducing delays. AI-based predictive maintenance enables organizations to foresee issues before they create disruptions, leading to increased efficiency. For instance, in August 2023, Shipsy, a cloud-based smart logistics management platform, launched its new AI-driven co-pilot, LIA (Logistics Intelligent Assistant), to use predictive and prescriptive intelligence for proactive logistics management. LIA tracks vital performance indicators in real time, identifies anomalies or potential threshold violations in real time, and sends alerts to concerned stakeholders to avoid service delays. These technologies help companies make informed decisions based on facts, greatly enhancing supply chain visibility. The capability to predict demand with accuracy and automate logistics processes not only reduces manual effort but also means more responsive, flexible logistics solutions.

Robotics and Drones in Warehousing and Last-Mile Delivery

The increasing adoption of robotics and drones to improve efficiency, particularly in warehousing and last-mile delivery is positively impacting the growth of logistics industry in India. Firms such as TechEagle, Swiggy, and DHL are piloting AI-based drone logistics and autonomous delivery solutions. AI-powered drones assist in delivering products at a fast speed, with minimal human touch and less room for error. These technologies are highly applicable to the expanding e-commerce industry, which requires speedy and consistent deliveries. In warehousing, autonomous systems enhance sorting, inventory management, and package handling, enhancing operations and lowering operational expenditures. As drone technology advances, it supports and delivers quicker, cheaper, especially in areas where more conventional logistics systems lag. This innovation, in combination with artificial intelligence, is revolutionizing the logistics sector across the country.

ESG and Sustainability Trends

Sustainability is gaining significant traction in the market, driven by environmental, social, and governance (ESG) considerations. Companies are increasingly adopting green warehousing solutions, which focus on energy efficiency and reducing the carbon footprint. Electric vehicle (EV) fleets are introduced to replace traditional diesel-powered trucks, further decreasing emissions. Additionally, the development of eco-friendly cold chains is a growing trend, especially in the food and pharmaceutical sectors, where temperature-controlled logistics are crucial. Several state governments are offering support policies and subsidies to accelerate green investments in the logistics sector. These measures are not only aligned with global sustainability goals but also significantly expands the Indian logistics market size. As ESG concerns become more prominent, businesses are integrating sustainable practices into their supply chains to enhance their reputation and operational efficiency.

Increasing Government Support

The Indian government programs, including Bharatmala, Sagarmala, dedicated freight corridors, and multi-modal logistics parks (MMLPs), are transforming the logistics scenario in India. Bharatmala is aimed at enhancing road connectivity, which will decrease freight time and cost drastically, particularly for long-distance haulage. The Sagarmala program is designed to enhance port capacity and connectivity, thus making coastal shipping efficient. Dedicated freight corridors enhance rail transport by increasing both speed and capacity, particularly for bulk goods. In addition, MMLPs, with multiple modes of transportation, coordinate logistics activities by combining road, rail, and air transportation. These improvements in infrastructure not only decrease traffic congestion and delay but also ensure the smooth transportation of goods within India. Efforts by the government to develop logistics infrastructure will decrease the cost of logistics overall, thereby improving the global competitiveness of Indian industries.

Smart Warehouses and Hyperlocal Logistics

The market is embracing the concept of smart warehouses, equipped with automated systems and IoT devices to optimize inventory management, improve tracking, and reduce human errors. These smart warehouses are pivotal in supporting the growing demand for quicker delivery times, especially in urban areas, which further augments logistics market share in India. Additionally, the logistics sector is witnessing the rise of hyperlocal logistics services, particularly in Tier-2 cities. These services focus on efficient, localized deliveries, improving access to goods for consumers in smaller cities. The development of connected logistics platforms is facilitating the real-time exchange of information, helping companies manage supply chains more effectively. Furthermore, the use of drones for last-mile delivery is expected to revolutionize the sector, providing faster, more cost-effective solutions for urban and rural deliveries alike.

Challenges and Opportunities in the India Logistics Market:

The logistics sector encounters multiple challenges and opportunities. Major challenges include poor infrastructure, elevated logistics costs, and supply chain inefficiencies. Logistics costs in India constitute a significant 13–14% of GDP, which is comparatively greater than the world average. Fragmented transport networks, lingering regulatory processes, and varying standards from state to state are the major factors contributing to inefficiencies. Also, most of the players in the industry are still dependent on legacy manual processes, restricting scalability and real-time visibility. However, according to the India logistics market analysis, opportunities are emerging with the digitalization of the logistics sector. Government's policies, including the National Logistics Policy and Gati Shakti, are set to fill gaps in infrastructure, simplify regulations, and drive costs down. Technologies like AI, IoT, and robotics are boosting operational efficiencies in warehousing and transportation. With the increasing e-commerce industry, there is huge potential in hyperlocal logistics, particularly in Tier-2 and Tier-3 towns, offering huge growth prospects to innovative logistics solutions.

India Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India logistics market report, along with forecasts at the country level from 2025-2033. Our report has categorized the market based on model type, transportation mode and end use.

Breakup by Model Type:

• 2 PL
• 3 PL
• 4 PL

3PL represents the most popular model type

The report has provided a detailed breakup and analysis of the market based on the model type. This includes 2 PL, 3 PL, and 4 PL. According to the report, 3 PL accounted for the largest market share.

Third-Party Logistics (3PL) is a model in which companies outsource logistics and supply chain management functions to specialized service providers which is gaining substantial traction due to its multifaceted advantages, thus contributing to the market growth.

Moreover, 3PL providers offer a comprehensive suite of services encompassing transportation, warehousing, inventory management, distribution, and value-added services. This holistic approach streamlines operations for businesses, allowing them to focus on core competencies while entrusting logistics expertise to specialized partners.

Furthermore, the dynamic nature of India's business environment, characterized by rapid market fluctuations and evolving consumer demands, aligns well with the agility of 3PL providers, who adapt swiftly to changing requirements, providing scalable solutions that cater to seasonal variations, market trends, and emerging opportunities.

Breakup by Transportation Mode:

• Roadways
• Seaways
• Railways
• Airways

Roadways presently account for the largest market share

A detailed breakup and analysis of the market based on the transportation mode has also been provided in the report. This includes roadways, seaways, railways, and airways. According to the report, roadways accounted for the largest market share.

Roadways provide the flexibility to navigate intricate routes, ensuring door-to-door delivery and catering to the unique demands of different industries their adaptability to transport numerous cargo, from perishables to bulk commodities is influencing the market growth.

Additionally, the Indian road transport system supports last-mile delivery, an essential component of e-commerce and retail operations the exponential growth of online shopping and the rising demand for swift deliveries to customers' doorsteps are augmenting the market growth. Besides this, government initiatives, such as the development of national highways and the modernization of road infrastructure enhance connectivity, reduce transit times, and improve the efficiency of cargo movement which is propelling the market growth.

Furthermore, other transportation modes such as railways and waterways hold their significance, while the flexibility, accessibility, and reliability of roadways make them the linchpin of the Indian logistics ecosystem, thus providing a positive thrust to the market growth.

Breakup by End Use:

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others

Manufacturing holds the largest share in the market

A detailed breakup and analysis of the market based on the end use has also been provided in the report. This includes manufacturing, consumer goods, retail, food and beverages, IT hardware, healthcare, chemicals, construction, automotive, telecom, oil and gas, and others. According to the report, manufacturing accounted for the largest market share.

The manufacturing sector is driven by robust production activities, encompassing numerous industries such as automotive, electronics, pharmaceuticals, textiles, and consumer goods are influencing the market growth.

Moreover, the Make in India initiative, aimed at improving domestic manufacturing, is increasing production capacities and expanding operations across numerous industries which represents another major growth-inducing factor. Along with this, the growing manufacturing activities require agile and sophisticated logistics operations to facilitate smooth procurement, distribution, and market penetration, thus propelling market growth.

Furthermore, the manufacturing sector’s reliance on just-in-time production methods further underscores the need for precision and timeliness in logistics, while lean inventory practices call for synchronized and efficient transportation, minimizing inventory holding costs while ensuring uninterrupted production cycles are contributing to the market growth.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

West and Central India exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East India. According to the report, West and Central India accounted for the largest market share.

The West and Central India market is primarily driven by increasing domestic and international trades across the country. In addition, states such as Maharashtra and Gujarat are major industrial and commercial centers, fostering robust demand for logistics services, thus influencing market growth.

Moreover, a well-developed infrastructure that supports the efficient movement of goods, connecting northern and southern regions states, such as Madhya Pradesh and Chhattisgarh, represent another major growth-inducing factor. Along with this, the rising demand for logistics solutions to connect major cities and its emerging status as an e-commerce distribution hub are propelling the market growth.

Furthermore, the implementation of government initiatives, such as the development of the Delhi-Mumbai Industrial Corridor (DMIC) and the Western Dedicated Freight Corridor (WDFC), enhances transportation infrastructure in these regions, contributing to their logistics prowess.

Top Logistics Companies in India:

Nowadays, key players in the market are employing a diverse range of strategies to fortify their positions and harness the industry's growth potential. In addition, logistics companies are embracing technology to enhance their operational efficiency and customer experience. They are adopting advanced tracking and monitoring systems, implementing IoT solutions for real-time visibility, and leveraging data analytics to optimize routes, reduce transit times, and enhance overall supply chain management. Moreover, companies are offering tailored logistics solutions to cater to diverse industry needs from specialized temperature-controlled transportation for perishables to specialized handling for high-value goods, customization ensures better alignment with clients' requirements. Besides this, key players are focusing on customer satisfaction, and providing seamless tracking, transparent communication, and flexible delivery options.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Aegis Logistics Ltd
• Allcargo Logistics Ltd
• Apollo LogiSolutions
• Aramex
• Blue Dart Express Limited
• C.H. Robinson Worldwide, Inc.
• DB Schenker
• Delhivery
• GEODIS India Pvt. Ltd
• Kuehne+Nagel
• Nippon Express Holdings
• Yusen Logistics (India) Private Limited

Latest News and Developments:

• On June 9, 2025, the Centre for Transportation Research and Management (CTRAM), an autonomous body under India’s Ministry of Railways, signed a memorandum of understanding (MoU) with Aviral Consulting to develop application-driven solutions for the logistics and rail freight sectors. The partnership will concentrate on integrating multimodal transport, increasing rail freight usage, promoting sustainability, implementing smart‑logistics frameworks, and upskilling personnel to bridge gaps between policy and execution. By combining CTRAM’s institutional and policy insights with Aviral’s industry expertise, the collaboration aims to build a resilient, technology-enabled, and environmentally responsible logistics ecosystem across India.
• On February 27, 2025, Apollo Hospitals, in collaboration with drone technology firm TechEagle, introduced India’s first “10-Minute Diagnostic Drone Delivery (D3)” service. The initiative, launched during THIT 2025 is designed to transport liquid biopsy samples using autonomous, AI-powered drones, reducing diagnostic transport time from several hours to just ten minutes. Equipped with 5G connectivity, real-time tracking, and intelligent route optimization, the service marks a major advancement in healthcare logistics and holds potential for broader applications in sectors like e-commerce and supply chain management.
• On January 8, 2025, MoEVing, a leading electric mobility tech platform, announced a strategic partnership with Safexpress, one of India’s premier logistics companies, to promote sustainable logistics solutions across the country. As part of the alliance, Safexpress has made a strategic investment in MoEVing to accelerate the deployment of electric vehicles (EVs) for last-mile deliveries, with a target of achieving 100% EV adoption by 2030. This collaboration leverages MoEVing’s existing fleet of over 3,000 EVs across 25 cities and reinforces both companies’ shared commitment to reducing carbon emissions and enhancing environmental sustainability within India’s logistics ecosystem.
• On September 16, 2024, Delhivery entered a strategic partnership with Team Global Logistics to significantly expand its cross-border ocean freight capabilities across inbound and outbound routes. Through this collaboration, Delhivery will offer its Less‑than‑Container‑Load (LCL) service to over 120 countries, while Team Global will leverage Delhivery’s Part Truckload (PTL) network—covering more than 18,700 pin codes—to provide seamless inland connectivity within India. The combined, technology-enabled solution—including tracking systems and regulatory clearance support—aims to simplify logistics for Indian importers and exporters by consolidating international shipment and domestic ground transportation under one integrated framework.

India Logistics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India logistics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India logistics market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.