Press release
India eCommerce Logistics Industry Revenue to grow by more than 20% CAGR in Next Five years: Makreo Research
Market OverviewIndia is one of the emerging markets across the world. Due to the diverse population, the demand for eCommerce platform is rising. In India, particularly among Tier I and Tier II, the eCommerce growth has been tremendous during the year 2020. The expansion of digital purchasing has been pushed by changing consumer habits during Covid-19. According to India e-commerce logistics report, in 2021, size of the Indian logistics market grew by 4%, and it is expected to grow at a CAGR of 5% form 2022-27, generating a market revenue of USD 633.6 billion by 2027. Future of transportation & logistics in India is expected to drive warehousing demand and industry trends in e-commerce logistics market are turning towards reverse logistics.
Moreover, the increasing purchase from cross-border and cheap shipping costs for consumers is anticipated to grow the market. Many players such as, Amazon provides free next-day delivery on orders over a certain threshold, as well as paid same day delivery to certain localities in the India.
On the other hand, numerous major elements will aid expansion, including the growing middle class-income population, high Internet penetration rate, robust transportation logistics network, advanced digital payment systems, expanding tech-savvy youth population, and strong government support.
Post-pandemic effect on India e-commerce Logistics Sector
The outbreak of the virus had a positive impact over the India e-commerce logistics sector. The E-commerce logistics players took several actions to maintain seamless operations at a difficult period when the supply chain was affected by prolonged lockdowns in a few other countries. In order to ensure the business's continuity, players expanded their service expansion in small towns and rural areas. Moreover, to reduce the danger of infection, e-commerce logistics players are using solutions like contactless deliveries, which is increasing demand for online transactions.
Further Key Findings of India e-commerce Logistics Report
Increasing Government Initiatives: Several government initiatives have been implemented to encourage innovation, entrepreneurship, and a cashless economy, giving a boost to eCommerce development in the country. Indian Government to launch the Secured Logistics Document Exchange (SLDE) along with a calculator for Green House gas Emission to improve the ease of doing business, logistic efficiency, reduce the cost of logistics and promote multi-modality and sustainability.
Increasing Digitization: For manufacturers, traders, dealers, wholesalers, and small retailers during the past two years, embracing a digital and computerized supply chain ecosystem through platform-driven approaches has become essential for business growth. Indian consumers are increasingly adopting digital technology, creating a lucrative opportunity for e-commerce logistics firms.
Increasing Smartphone Users: India is expected to have 820 million smartphone users out of the total population by the end of 2022. rural India witnessed a year-on-year growth of 36.2% in 2020 as opposed to a 7.1% growth in urban India in the same period in terms of internet users. Smartphone penetration in rural India has risen from 9% in 2015 to 25.3% in 2020. These figures give rise to the increasing penetration of e-commerce in the economy where more than 3000 registered e-commerce sites are being operated.
A large number of Youth Population of India: India is placed 5th of the world's youth population. This creates a demographic dividend to the nation and helps it to achieve the USD 5 trillion economy objective. The large youth population offers both the market and workforce to the e-commerce logistics industry. The youth are the drivers for innovation, entrepreneurship and diversity. India has more than 50% of population below the age 25. In 2020 the average age of the population was 29 in India.
Makreo Research has published a study titled "India E-commerce Logistics Market Performance and Future Outlook to 2027" is a detailed study that offers the reader to understand market performance of market size for logistics industry in India. On demand aspect, it is important to understand performance of E-commerce market in India and its outlook and on supply aspect we have studied E-commerce logistics service providers and annual shipments. The study is a combination of qualitative and quantitative assessment of the industry covering micro and macro level of assessment of the economy and other independent factors that are highly corelated with the E-commerce logistics market of India.
To Know More About Coverage Click Here-
https://www.makreo.com/report/india-e-commerce-logistics-market-report
Reach out to us:
Call: +91+9619699069
Write: ankit.suri@makreo.com
Office No 30, 2nd Floor, Crystal Plaza, Hiranandani Complex, Sec 7, Kharghar, Navi Mumbai, Maharashtra - 410210, India
Makreo is a Market research and consulting firm working closely with business conglomerates worldwide to help them in many aspects of driving their business growth and assist in making wise decisions with the help of our qualitative & quantitative market insights.
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