Shipments surge to 10.5 billion! India's logistics industry continues to grow

Since the outbreak of the epidemic last year, online shopping in India has surged, and the logistics industry has also accelerated its digitalization process .

According to a report by consulting firm Redseer, India’s logistics industry was worth $320 billion in 2019, accounting for 11% of the country’s GDP. “Logistics remains the backbone of many industries and over the years has enhanced its technology-based services to suit different industries and their needs,” the consulting firm said.

The company's data showed that India's e-commerce shipping shipments grew 70% year-on-year to 2.55 billion pieces in 2020 , and the company expects this figure to increase to around 10.5 billion pieces by 2025.

In March last year , India implemented one of the world's strictest national lockdowns in response to the pandemic, but as people turned to online ordering, logistics began to see a surge in demand from its e-commerce customers and achieved "some of the best growth months during the epidemic." Driven by this, many logistics companies are expected to become profitable this year.

The logistics market consists of road transport, warehousing and other distribution networks such as air, sea, rail, etc. According to RedSeer data, road logistics was valued at $240 billion in 2019, accounting for 75% of the market share.

RedSeer said: "The road logistics market and last-mile delivery are moving in the right direction towards profitability." Redseer estimates that the market for last-mile delivery will expand to $6 billion to $7 billion by 2024 from $800 million in 2019.

In India, the warehousing sector accounts for about 13% of the logistics industry . Due to the boom in e-commerce, the warehousing industry is becoming stronger and a lot of storage space is being created.

With the heavy impact of the epidemic in India, transportation between states and cities has become more difficult, and many factories are closed, which has hit India's logistics industry to a certain extent. But in the long run, the overall situation of India's logistics industry in the future is still optimistic.

logistics

India

E-commerce