Indian Warehouse Market Research Report and Industry Forecast

Indian Warehouse Market Size and Share:

The Indian warehouse market size was valued at INR 1,505.06 Billion in 2024. Looking forward, IMARC Group estimates the market to reach INR 3,314.06 Billion by 2033, exhibiting a CAGR of 8.71% from 2025-2033. The market share is driven by accelerating demand for effective storage services, fueled by expansion in e-commerce, logistics, and government programs targeting infrastructure development, promotion of trade, and supply chain management improvement across industry sectors.

The strongest driver of India's warehouse industry is the intense growth of the e-commerce market. According to the reports, in March 2025, India's warehousing market expanded by 12%, to 56.4 million sq ft in 2024. Mumbai topped the list with 10.3 million sq ft, fueled by third-party logistics and e-commerce sectors. Furthermore, with hundreds of millions of consumers making online purchases, there is a sharp increase in the demand for streamlined storage and distribution facilities. Strategically placed warehouses are needed by e-commerce operators to house inventories, fulfill orders promptly, and provide uninterrupted supply chain functions. As the shopping from websites becomes highly popular, package volume handled by it has also surged exponentially, with a real urgency for warehouse facilities at scale. With faster deliveries, particularly in metro and tier-II towns, being needed too, having warehouses at central points also gains validity in saving time and costs in transportation. Online market players are rapidly turning their attentions to solutions for last-mile delivery, a feat that only becomes possible via the optimal exploitation of urban-area warehouses. More importantly, an increase in the adoption of omnichannel selling, in which companies have the presence both on and offline, has further generated the need for integrated distribution networks and warehousing.

The efforts of the Indian government to facilitate ease of doing business and encourage infrastructure growth have been instrumental in encouraging the warehouse market. Initiatives like the Goods and Services Tax (GST) and the construction of dedicated logistics parks have facilitated the setup of large-size warehouses nationwide. As per the sources, in March 2025, India's logistics and warehousing industry witnessed steep growth in tier 2-3 cities during March 2025, powered by government thrust like the ₹10,000 crore yearly Urban Infrastructure Development Fund and infrastructural improvement. Moreover, the advent of GST has de-cluttered the tax architecture, removing inter-state hurdles and making it easy to transport goods across state boundaries, promoting warehousing efficiency. Further, the government drive for improving infrastructures such as highways, freight corridors, and multimodal logistic parks has contributed substantially to minimizing transportation costs and enhancing the viability of large-size warehouses. Such policies have rendered India a popular destination for both local and foreign logistics businesses, which has increased demand for contemporary warehouse facilities. The establishment of logistics parks and special economic zones (SEZs) also makes it easy to establish warehouses, which businesses are granted with incentives, such as tax exemptions and accelerated regulatory approval.

Indian Warehouse Market Trends:

Growing Demand for Warehouses with Logistics and Growth in E-commerce

The rising demand for Indian warehouses is primarily fueled by the requirement to preserve product freshness and timely delivery. Since logistics is used to add value to goods, warehouse services are becoming essential in keeping products reaching customers on time. One of the main drivers of growth for the Indian warehouse market forecast is an increased e-commerce business. As more consumers are switching to online shopping, warehouses play a critical role in managing inventory, order fulfillment, and stock availability when needed. India's e-commerce industry had a Gross Merchandise Value (GMV) of USD 60 billion in financial year 2023, registering a growth of 22% compared to the previous year, as per the India Brand Equity Foundation. This expanding e-retail market requires efficient warehouses that can process high volumes and provide services such as packaging and rapid order filling. With online shopping on the increase, warehouses became an essential part of India's retail and logistics environment.

Government Initiatives and Export Growth

Another major trend is the active intervention of the Indian government in developing the logistics and warehousing industries. With programs such as the Export-oriented Units (EOU) scheme, India seeks to increase its share in international trade by promoting exports. The scheme is aimed at minimizing trade deficits and fostering the development of export activity, which subsequently fuels the demand for warehousing. The demand for warehouses is specifically great in the sectors that need well-efficient inventory management for export purposes, for keeping products safe and shipping them on time. With increasing strength of India in world trade, warehouses become more important in supporting amplified volumes of exports. Government policies and investments alongside a vision to minimize logistics cost further support this market. The growth of international trade and export business is likely to drive demand for warehouses with capabilities to meet complex logistics and transportation needs.

Warehouse Usage in Automotive and Value-Added Services

Moreover, another strong contributor to Indian warehousing market growth is the demand driven by the automotive sector. Due to the high level of purchases of personal cars and electric vehicles (EVs), the need for warehouses has also been rising as a requirement for storing spare parts, components, and finished products. The dependency of the automotive industry on warehouses for distributing the product quickly across the country makes sure it goes efficiently to where it's needed. Also, warehouses are now highly utilized for value-added services, including packaging, docking, and consolidating goods to minimize delivery time. These services are being included by companies to streamline supply chain management, produce higher value, and improve customer satisfaction. With more than the basic storage, warehouses are now becoming central hubs that help ensure smoother logistics processes and quicker delivery times. The growing demand for value-added services is compelling warehouses to transform themselves into multi-functional logistical hubs.

Indian Warehouse Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Indian warehouse market, along with forecast at the regional, and country levels from 2025-2033. The market has been categorized based on sector, ownership, and type of commodities stored.

Analysis by Sector:

• Industrial Warehouses
• Agricultural Warehouses

Industrial warehouses are leading the segment as they are needed for raw material storage and distribution, finished goods, and machinery employed in industries like manufacturing, automotive, and chemicals. Industrial warehouses are situated close to industrial areas and transportation centers, facilitating easy movement of products. Industrial warehouse demand has increased in India as a result of expansion in manufacturing industries and government campaigns like the "Make in India" initiative. These warehouses are generally bigger in terms of area, with specially designed storage mechanisms for the management of heavy cargo, temperature-sensitive goods, or dangerous goods. Expansion of industry segments like automobiles, FMCG, and electronics, as well as manufacturing hubs all over India, has propelled the demand for industrial warehouses extensively. Moreover, the use of automation, AI, and IoT technologies within these warehouses is enhancing efficiency in operations, declining lead times, and accelerating overall productivity, making them an integral part of the supply chain system in India.

Analysis by Ownership:

• Private Warehouses
• Public Warehouses
• Bonded Warehouses

Private warehouses are property and operations that are owned by companies for use exclusively by their organizations. Such warehouses are mostly custom-made to serve the peculiar demands of an enterprise's supply chain so that the inventory could be kept and maintained as per individual specifications. Private warehouses are popular in India with large firms across industries such as automotive, FMCG, pharmaceuticals, and electronics. These companies invest in private warehouses to have more control over their logistics, decrease reliance on third-party operators, and have smooth flows of goods within their supply chain. Private warehouses also facilitate improved customization of layout, storage systems, and security protocols. Firms typically incorporate cutting-edge technologies such as automated storage and retrieval systems (ASRS), RFID, and AI-based analytics to enhance inventory management and efficiency. The increasing need for specialized storage, including temperature-controlled areas for perishable items or high-security storage for electronics, has further spurred the development of private warehousing in India.

Analysis by Type of Commodities Stored:

• General Warehouses
• Specialty Warehouses
• Refrigerated Warehouses

General warehousing is used to describe facilities that are meant for the storage of a broad range of goods, such as consumer items, packaged foods, and apparel. Such warehouses usually cater to non-specialized storage requirements, hence making them flexible and responsive to various industries. In India, the accelerated expansion of e-commerce, coupled with the rising need for fast-moving consumer goods (FMCG), has driven the demand for general warehouses. The extensive use of e-commerce sites has created the need for an increased focus on rapid order completion, necessitating warehouses to strategically be placed within proximity to metropolitan areas. Further, general warehouses are also tending to turn to automation and intelligent storage devices to improve effectiveness and lower cost. The tendency towards demand prediction, inventory control systems, and real-time visibility is enhancing warehousing operations and addressing consumer demands. As logistics gain more prominence in the economy of India, general warehousing plays a critical role in fulfilling the supply chain needs in various industries.

Competitive Landscape:

The Indian warehousing industry is propelled by the swift growth of industries like e-commerce, automotive, and manufacturing. Major players are increasingly embracing newer technologies such as automation, artificial intelligence (AI), and cloud-based solutions to make operations more efficient and improve supply chain effectiveness. These technologies enable optimized management of inventory, minimized delivery time, and better real-time tracking of products. Moreover, the accelerating need for value-added solutions like packaging and customization of products has resulted in an increased emphasis on offering full-fledged logistics solutions. The efforts of the government to boost global trade and spur export-driven activities also add to the market's optimistic outlook. With the boosting sales of personal and electric vehicles (EVs), the automotive industry's demand for warehouses is also picking up pace. This changing topography invites endless innovation, generating a scenario wherein firms continually improve warehouse design and operating models to comply with shifting marketplace demands.

The report provides a comprehensive analysis of the competitive landscape in the Indian warehouse market with detailed profiles of all major companies.

Latest News and Developments:

• December 2024: Zepto and NX Logistics India launched a premium warehousing facility at Sumadhura Logistics Park, Bengaluru. Developed by Sumadhura Group and spanning 1.8 lakh sq-ft, the space is subleased from NX Logistics India (Nippon Express) under a strategic partnership.
• July 2024: Greendzine Technologies Pvt. Ltd. introduced its "Manomation" campaign at the India Warehousing Show held at YashoBhoomi, Delhi. Displaying its MOPTro products, the company emphasized the fusion of human intelligence with machine efficiency.
• March 2024: IndoSpace unveiled its first in-city warehousing facility, INLOGIS Chembur, in Mumbai. Spanning over 1.5 lakh sq. ft., the facility offers modular spaces between 5,000 to 35,000 sq. ft.
• February 2024: Accio Robotics showcased its “AccioPick Air” solution at LogiMAT India, designed to elevate order picking efficiency. This goods-to-person system is engineered to optimize performance and reliability in warehousing operations.

Indian Warehouse 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 Indian warehouse market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Indian warehouse market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's Five Forces analysis assists 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 Indian warehouse 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.