Third-party Logistics Market in India by End-user and Service - Forecast and Analysis 2021-2025

  • Published: Apr 2021
  • Pages: 120
  • SKU: IRTNTR70550
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The third-party logistics market share in India is expected to increase by USD 10.74 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 8%.

This third-party logistics market research report of India provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers market segmentation by end-user (manufacturing, consumer goods, food and beverages, automotive, and others) and service (transportation services, warehousing and distribution services, and VAS). The third-party logistics market report of India also offers information on several market vendors, including Aegis Logistics Ltd., Allcargo Logistics Ltd., AWL India Pvt. Ltd., Blue Dart Express Ltd., Delhivery Pvt. Ltd., FedEx Corp., Gati Ltd., Mahindra Logistics Ltd., Safexpress Pvt. Ltd., and TVS Supply Chain Solutions among others.

What will the Third-party Logistics Market Size in India be During the Forecast Period?

Download the Free Report Sample to Unlock the Third-party Logistics Market in India Size for the Forecast Period and Other Important Statistics

 

Third-party Logistics Market in India: Key Drivers and Trends

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The introduction of tax reforms and initiatives for 3PL in India is notably driving the third-party logistics market growth in India, although factors such as high operational costs may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the third-party logistics industry in India. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Third-Party Logistics Market in India Key Driver

One of the key factors driving growth in the third-party logistics market in India is the introduction of tax reforms and initiatives for 3PL in India.  The 3PL sector in India is experiencing a transformative phase with the introduction of various reforms and initiatives. The GST is one of the major tax reforms that was introduced by the Government of India. The implementation of GST helped reduce the price differences between states and make tax liabilities uniform across India. The new tax regime reduces logistics costs and increases operating efficiencies by reducing border checks. The increasing introduction of such reforms and initiatives in India is expected to fuel the market growth of 3PL in India.

Third-Party Logistics Market in India Key Trend

The emergence of digitalization in 3PL is another major factor supporting the third-party logistics market share growth in India.  Digitalization has emerged as a key trend among various 3PL service providers in India. Many of the 3PL providers have started investing in smarter information technology (IT) and software systems that can give a better return on investment. Specialized software helps drive the costs down, save time, and increase efficiency. Some of the technologies used for logistics services include radio-frequency identification (RFID), blockchain, and real-time location systems (RTLS). The use of such advanced technologies is expected to reduce the operational costs in the logistics sector, which would drive the growth of the market in focus over the forecast period.

Third-Party Logistics Market in India Key Challenge

The high operational costs will be a major challenge for the third-party logistics market share growth in India. The logistics industry in India is becoming highly competitive in terms of the pricing of services owing to the increase in demand for VAS. Transportation costs form a major part of logistics costs. The volatility in fuel prices in India is contributing to the rise in transportation costs. As fuel prices increase, logistics service providers charge customers for achieving profits. The constant demand for lower rates from customers creates pricing pressure on logistics service providers. The unorganized and inefficient logistics supply chain in India results in various indirect costs such as inventory carrying costs as well as damages and losses to goods in transit. These incidences are very common in the Indian logistics sector and account for a larger part of operational costs. These factors are likely to restrict the market growth of 3PL in India.

This third-party logistics market in India analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the third-party logistics (3PL) market in India as a part of the global air freight and logistics market within the global transportation market. The parent global air freight and logistics market covers revenue generated by companies providing air freight transportation; courier; and logistics services, including package and mail delivery and customs agents. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the market in focus during the forecast period.

Who are the Major Third-party Logistics Market Vendors in India?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

 

  • Aegis Logistics Ltd.
  • Allcargo Logistics Ltd. 
  • AWL India Pvt. Ltd.
  • Blue Dart Express Ltd.
  • Delhivery Pvt. Ltd.
  • FedEx Corp.
  • Gati Ltd.
  • Mahindra Logistics Ltd.
  • Safexpress Pvt. Ltd.
  • TVS Supply Chain Solutions

 

This statistical study of the third-party logistics market in India encompasses successful business strategies deployed by the key vendors. The third-party logistics market in India is fragmented and the vendors are deploying growth strategies such as making huge capital investments to increase the scope of their offerings and expand their customer base to compete in the market.

Product Insights and News

  • FedEx Corp. - In December 2020, the company announced the acquisition of ShopRunner, the e-commerce platform that directly connects brands and merchants with online shoppers. ShopRunner’s capabilities complement and expand the FedEx e-commerce portfolio and are expected to create increased value for brands, merchants and consumers.
  • Mahindra Logistics Ltd - In April 2021, Flipkart, the Indian e-commerce marketplace, announced a partnership with Mahindra Logistics Limited as one of its key logistics partners to help fast track deployment of electric vehicles across its logistics fleet in the country.
  • Safexpress Pvt. Ltd. –  In February 2021, Safexpress was awarded the 'Business Of The Year' award at the world leadership congress & awards 2021.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The third-party logistics market in India forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Third-party Logistics Market Value Chain Analysis in India

Our report provides extensive information on the value chain analysis for the market, which vendors can leverage to gain competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the industry includes the following core components:

  • Shippers
  • Freight forwarder
  • Air freight carrier
  • Handling agents
  • Consignee
  • Innovations

The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.

What are the Revenue-generating End-user Segments in the Third-party Logistics Market in India?

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The third-party logistics market share growth in India by the manufacturing segment will be significant during the forecast period. The 3PL market for the manufacturing industry is expected to grow steadily during the forecast period. Much of the future growth of the global manufacturing industry will come from developing countries such as India. The number of new manufacturing industries in India has increased due to policy reforms that have improved the ease of doing business in the region.

This report provides an accurate prediction of the contribution of all the segments to the growth of the third-party logistics market size in India and actionable market insights on post COVID-19 impact on each segment.

 

Third-party Logistics Market Scope in India

Report Coverage

Details

Page number

120

Base year

2020

Forecast period

2021-2025

Growth momentum & CAGR

Accelerate at a CAGR of 8%

Market growth 2021-2025

$ 10.74 billion

Market structure

Fragmented

YoY growth (%)

6.92

Regional analysis

India

Competitive landscape

Leading companies, Competitive strategies, Consumer engagement scope

Companies profiled

Aegis Logistics Ltd., Allcargo Logistics Ltd., AWL India Pvt. Ltd., Blue Dart Express Ltd., Delhivery Pvt. Ltd., FedEx Corp., Gati Ltd., Mahindra Logistics Ltd., Safexpress Pvt. Ltd., and TVS Supply Chain Solutions

Market Dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and future consumer dynamics, Market condition analysis for the forecast period

Customization purview

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What are the Key Factors Covered in this Third-party Logistics Market Report of India?

  • CAGR of the market during the forecast period 2021-2025
  • Detailed information on factors that will drive third-party logistics market growth in India during the next five years
  • Precise estimation of the third-party logistics market size in India and its contribution to the parent market
  • Accurate predictions on upcoming trends and changes in consumer behavior
  • A thorough analysis of the market’s competitive landscape and detailed information on vendors
  • Comprehensive details of factors that will challenge the growth of third-party logistics market vendors in India 

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1. Executive Summary                           

2. Market Landscape                             

                2.1 Market ecosystem             

                                Exhibit 01:  Parent market

                2.2 Market Charectistics          

                                Exhibit 02:  Market Characteristics

                2.2 Value chain analysis           

                                Exhibit 03:  Value Chain Analysis: Household Appliances

                                2.3.1 Shippers

                                2.3.2 Freight forwarder

                                2.3.3 Air freight carrier

                                2.3.4 Handling agents

                                2.3.5 Consignee

                                2.3.6 Industry innovation

3. Market Sizing                       

                3.1 Market definition

                                Exhibit 04: Offerings of vendors included in the market definition

                3.2 Market segment analysis 

                                Exhibit 05:  Market segments

                3.3 Market size 2020 

                3.4 Market outlook: Forecast for 2020 - 2025 

                                Exhibit 06:  Global - Market size and forecast 2020 - 2025 ($ million)

                                Exhibit 07:  Global market - Year-over-year growth 2020 - 2025 (%)

4. Five Forces Analysis                          

                4.1 Five Forces Summary        

                                Exhibit 08: Five forces analysis 2020 & 2025

                4.2 Bargaining power of buyers           

                                Exhibit 09:  Bargaining power of buyers

                4.3 Bargaining power of suppliers       

                                Exhibit 10:  Bargaining power of suppliers

                4.4 Threat of new entrants    

                                Exhibit 11:  Threat of new entrants

                4.5 Threat of substitutes         

                                Exhibit 12:  Threat of substitutes

                4.6 Threat of rivalry   

                                Exhibit 13:  Threat of rivalry

                4.7 Market condition

                                Exhibit 14: Market condition - Five forces 2020

5. Market Segmentation by Product               

                The segments covered in this chapter are: 

  • Manufacturing 
  • Consumer goods 
  • Food and beverages 
  • Automotive 
  • Others​ 

The two segments have been ranked based on their market share in 2020. The manufacturing segment constituted the largest segment in 2020, while the smallest segment was automatic.

                5.1 Market segments

                                Exhibit 15: End User - Market share 2020-2025 (%)

                5.2 Comparison by End User  

                                Exhibit 16: ​Comparison by End User

                5.3 ​Manufacturing - Market size and forecast 2020-2025          

                                Exhibit 17: Manufacturing - Market size and forecast 2020-2025 ($ million)​

                                Exhibit 18: Manufacturing​ - Year-over-year growth 2020-2025 (%)

                5.4 Consumer Goods - Market size and forecast 2020-2025      

                                Exhibit 19: ​Consumer Goods  - Market size and forecast 2020-2025 ($ million)​

                                Exhibit 20: ​Consumer Goods - Year-over-year growth 2020-2025 (%)

                5.5 Food and Beverages - Market size and forecast 2020-2025

                                Exhibit 21: ​Food and Beverages  - Market size and forecast 2020-2025 ($ million)​

                                Exhibit 22: ​Food and Beverages - Year-over-year growth 2020-2025 (%)

                5.6 Automotive - Market size and forecast 2020-2025 

                                Exhibit 23: ​Automotive  - Market size and forecast 2020-2025 ($ million)​

                                Exhibit 24: ​Automotive - Year-over-year growth 2020-2025 (%)

                5.7 Others - Market size and forecast 2020-2025           

                                Exhibit 25: ​Others  - Market size and forecast 2020-2025 ($ million)​

                                Exhibit 26: ​Others - Year-over-year growth 2020-2025 (%)

                5.8 Market opportunity by Product    

                                Exhibit 27: ​Market opportunity by Product

6. ​Market Segmentation by Service

                The segments covered in this chapter are: 

  • Transportation services 
  • Warehousing and distribution services 
  • VAS

The two segments have been ranked based on their market share in 2020. The transportation segment constituted the largest segment in 2020, while the smallest segment was VAS.

                6.1 Market segments               

                                Exhibit 28: Service - Market share 2020-2025 (%) 

                6.2 Comparison by Service     

                                Exhibit 29: Comparison by Service

                6.3 Transportation Services - Market size and forecast 2020-2025         

                                Exhibit 30 : Transportation Services - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 31 : Transportation Services - Year-over-year growth 2020-2025 (%)

                6.4 Warehousing and Distribution Services - Market size and forecast 2020-2025          

Exhibit 32: Warehousing and distribution services - Market size and forecast 2020-2025 ($ billion)

Exhibit 33 : Warehousing and distribution services - Year-over-year growth 2020-2025 (%)

                6.5 VAS - Market size and forecast 2020-2025                

                                Exhibit 34: VAS - Market size and forecast 2020-2025 ($ billion)

                                Exhibit 35: VAS - Year-over-year growth 2020-2025 (%)

                6.6 Market opportunity by Service      

                                Exhibit 36: ​ Market opportunity by Service

7. Customer landscape                         

Technavio’s customer landscape matrix comparing Drivers or price sensitivity, Adoption lifecycle, importance in customer price basket, Adoption rate and Key purchase criteria

                                Exhibit 37: ​Customer landscape​

8. Drivers, Challenges, and Trends                   

                8.1 ​Market drivers     

                                8.1.1     Introduction of tax reforms and initiatives for 3PL in India

                                8.1.2    Growth of e-commerce sector in India 

                                8.1.3    Increase in investments for 3PL startups in India

                8.2 Market challenges              

                                8.2.1   High operational costs

                                8.2.2   Inadequate logistics infrastructure in India

                                8.2.3  Lack of technology adoption and quality manpower

                                Exhibit 38: Impact of drivers and challenges

                8.3 Market trends      

                                8.3.1 Emergence of digitalization in 3PL

                                8.3.2 Modernization of logistics infrastructure in India

                                8.3.3 Increasing popularity of integrated cold chain logistics services

9. Vendor Landscape                             

                9.1 Competitive Scenario        

                9.2 Vendor landscape               

                                Exhibit 39: Vendor landscape

                9.3 Landscape disruption        

The potential for the disruption of the market landscape was moderate in 2020, and its threat is expected to remain unchanged by 2025. 

                                Exhibit 40: ​Landscape disruption​

                9.4 Industry Risks       

                                Exhibit 41: Industry risks

10. Vendor Analysis               

                10.1 Vendors covered              

                                Exhibit 42: Vendors covered

                10.2 Market positioning of vendors    

                                Exhibit 43: ​Market positioning of vendors​

                10.3 Aegis Logistics Ltd.           

                                Exhibit 44: Aegis Logistics Ltd.   - Overview

                                Exhibit 45: Aegis Logistics Ltd. - Business segments

                                Exhibit 46:  Aegis Logistics Ltd.  - Key offerings

                                Exhibit 47: AB Electrolux  - Segment Focus

                10.4 Allcargo Logistics Ltd.     

                                Exhibit 48: Allcargo Logistics Ltd.   - Overview

                                Exhibit 49: Allcargo Logistics Ltd. - Business segments

                                Exhibit 50: Allcargo Logistics Ltd.  - Key offerings

                                Exhibit 51: Allcargo Logistics Ltd. - Segment Focus

                10.5 AWL India Pvt. Ltd.           

                                Exhibit 52:  AWL India Pvt. Ltd.    - Overview

                                Exhibit 53:  AWL India Pvt. Ltd.  - Business segments

                                Exhibit 54:  AWL India Pvt. Ltd.  - Key offerings

                                Exhibit 55:  AWL India Pvt. Ltd.  - Segment Focus

                10.6 Blue Dart Pvt. Ltd.            

                                Exhibit 56: Blue Dart Pvt. Ltd. - Overview

                                Exhibit 57: Blue Dart Pvt. Ltd.- Business Segments

                                Exhibit 58:  Blue Dart Pvt. Ltd.  - Key offerings

                                Exhibit 59:  Blue Dart Pvt. Ltd. -Segment focus

                10.7 Delhivery Pvt. Ltd.            

                                Exhibit 60:  Delhivery Pvt. Ltd. -Overview

                                Exhibit 61:  Delhivery Pvt. Ltd.  - Business Segments

                                Exhibit 62:  Delhivery Pvt. Ltd.  - Key offerings

                                Exhibit 63:  Delhivery Pvt. Ltd.  - Segment Focus

                10.8 FedEx Corp.         

                                Exhibit 64:  FedEx Corp.   - Overview

                                Exhibit 65:  FedEx Corp. - Business Segments

                                Exhibit 66: FedEx Corp.   - Key news

                                Exhibit 67:  FedEx Corp.   - Key offerings

                                Exhibit 68:  FedEx Corp.   - Segment Focus

                10.9     Gati Ltd            

                                Exhibit 69:  Gati Ltd   -Overview

                                Exhibit 70:  Gati Ltd - Business Segments

                                Exhibit 71:  Gati Ltd  - Key offerings

                                Exhibit 72:   Samsung Electronics Co. Ltd. - Segment Focus

                10.10    Mahindra Logistics Ltd.            

                                Exhibit 73:   Mahindra Logistics Ltd. -Overview

                                Exhibit 74:   Mahindra Logistics Ltd. - Products and Services

                                Exhibit 75:   Mahindra Logistics Ltd. - Key news

                                Exhibit 76:   Mahindra Logistics Ltd.  - Key offerings

                10.11    Safeexpress Pvt. Ltd. 

                                Exhibit 77:  Safeexpress Pvt. Ltd.   - Overview

                                Exhibit 78:  Safeexpress Pvt. Ltd. - Business Segments

                                Exhibit 79: Safeexpress Pvt. Ltd.   - Key news

                                Exhibit 80:  Safeexpress Pvt. Ltd.   - Key offerings

                                Exhibit 81: Safeexpress Pvt. Ltd.   - Segment Focus

                10.12     TVS Supply Chain Solutions    

                                Exhibit 82:  TVS Supply Chain Solutions    - Overview

                                Exhibit 83:   TVS Supply Chain Solutions   - Business Segments

                                Exhibit 84:    TVS Supply Chain Solutions    - Key offerings

                                Exhibit 85:   TVS Supply Chain Solutions   -Segment focus

11. Appendix                            

                11.1 Scope of the report         

                                11.1.1 ​​​​Market definition

                                11.1.2 ​​​​Objectives

                                11.1.3 ​​​​Notes and caveats

                11.2 Currency conversion rates for US$            

                                Exhibit 86: ​Currency conversion rates for US$​

                11.3 Research Methodology 

                                Exhibit 87: ​Research Methodology

                                Exhibit 88: ​​Validation techniques employed for market sizing​

                                Exhibit 89: ​​Information sources

                11.4 List of abbreviations        

                                Exhibit 90: List of abbreviations

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

TechnavioINFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases
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TechnavioDATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts
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TechnavioREPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape
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The third-party logistics market growth will increase by $10747.75 million during 2020-2025.
The third-party logistics market is expected to grow at a CAGR of 7.87% during 2020-2025.
Technavio has segmented the third-party logistics market by end user (Manufacturing, Consumer goods, Food and beverages, Automotive, and Others) ,service (Transportation services, Warehousing and distribution services, and VAS) , and geographic (Afghanistan and Albania).
Aegis Logistics Ltd., Allcargo Logistics Ltd. , AWL India Pvt. Ltd., Blue Dart Express Ltd., Delhivery Pvt. Ltd., FedEx Corp., Gati Ltd., Mahindra Logistics Ltd., Safexpress Pvt. Ltd., TVS Supply Chain Solutions are a few of the key vendors in the third-party logistics market.
Afghanistan will register the highest growth rate of Infinity% among the other regions. Therefore, the third-party logistics market in Afghanistan is expected to garner significant business opportunities for the vendors during the forecast period.
The key factors driving the third-party logistics market growth are:
  • Introduction of tax reforms and initiatives for 3PL in India
The third-party logistics market vendors should focus on grabbing business opportunities from the manufacturing segment as it accounted for the largest market share in the base year.
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