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Technology Enabled Transformations & GOI Policies such as National Logistics Policy will drive the Road Freight Market in India to grow over INR 9500 Bn in the next 5 Years. Will the Growth Sustain? Ken Research
Technology Enabled Transformations & GOI Policies such as National Logistics Policy will drive the Road Freight Market in India to grow over INR 9500 Bn in the next 5 Years. Will the Growth Sustain? Ken ResearchThe market is expected to grow at a CAGR of 9% driven by rising foreign trade, surging discretionary spend, growing FMCG sector, and increasing investment in transport infrastructure, says a report by Ken Research
1. "Tech to the rescue:" Technology-enabled transformations such as FMS & autonomous vehiclesand digital trucking aggregators with online load board and automated brokerage are driving the market growth.
Technology has significantly changed due to AI's important role in supply chain management, including the development of predictive optimization, which is expected to become one of the biggest drivers in the logistics industry. Technologies such as Real Time Location and Temperature Monitoring and Data Sharing which enables real time monitoring of the temperature of a refrigerated unit & customer has changed the way fleet operators view the logistics market. Other such technologies operating in the market currently are warehouse automation, fleet management software & Advanced driver assistance system.
Click to Read Full Article: India Road Freight Market Outlook
https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/india-road-freight-market-outlook/338096-100.html
2. Government Policies such as National Logistics Policy is integrating the operations in order to remove market glitches.
The National Logistics Policy (NLP) has been designed to o ensure that logistical problems are minimized, exports increase significantly, and small businesses and the people who work in them gain profit. The aim is not only to ensure smooth operations but also profit & employment generation via logistics industry in India. Moreover, various sub segments of NLP such as Gati Shakti Program & Sagarmala are also aimed at developing the logistics infrastructure.
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3. "Growth is the way ahead:" With increasing investment, technological innovation & government focus, the road freight market in India is expected to witness a surge in terms of development.
The industry is forecasted to grow at a CAGR of 9.0% during 2019-2024 driven by rising foreign trade, surging discretionary spend, growing FMCG sector, and increasing investment in transport infrastructure. IR and GoI is actively making efforts to make rail freight competitive with road freight. Eastern and Western DFCs are expected to be fully operational by 2020, and 4 more corridors are in the pipeline. IR is also looking to rationalise rail freight rates. Phase I of the Bharatmala Pariyojana set to be completed by 2021-22, which includes 34,800 km of roads. Focus on road infrastructure and dependence on roads for freight transport is expected to continue. Container trucks proportion in the market is expected to rise in the future due to its versatility and resistance to adverse weather.
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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.
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