India's e-commerce logistics industry is expected to reach Rs 492.4 billion by 2025

According to the latest report released by Ken Research , India's e-commerce logistics industry is expected to reach 492.4 billion Indian rupees by 2025 , with a compound annual growth rate of 23.6% over the next five years .

Currently, most of India’s e-commerce logistics needs come from metros and first-tier cities. However, by 2025, this trend is expected to change , as India’s second- and third-tier cities are gradually becoming new e-commerce demand centers as internet penetration increases.

It is estimated that over the next five years, a large portion of the demand is expected to come from Tier II and lower cities , mainly due to cheap data packages , increasing smartphone usage, rising per capita income and increasing propensity to buy online.

As e-commerce demand increases in second- and third-tier cities, this shopping model is also placing increasing demands on fast delivery services.

To keep up with the pace of digital commerce, many Indian logistics companies are adopting advanced technologies to meet the higher expectations of consumers. Technologies such as IoT ( Internet of Things ) , advanced algorithms, data analytics, artificial intelligence ( AI), and automation are emerging to streamline the operations of companies.

Image source: Amazon

In addition to the surge in demand and rapid technological advancement , the expansion of e-commerce logistics in India is also inseparable from the expansion of the logistics supply chain network . With the increasing potential for local and regional shipments, large e-commerce logistics companies are focusing on establishing new fulfillment centers near end consumers to increase delivery speed and meet larger package sizes.

Additionally , owing to the growth in tier II and III cities , several e-tailers are considering expanding their networks through strategic alliances and logistics partnerships in these regions .

Significant investments in digital channels across Indian languages ​​are expected to increase in the near future. In addition, the Indian government’s push for digital initiatives is expected to accelerate the promotion and adoption of digital wallets. These will become important driving forces for the Indian e-commerce market and logistics market.

logistics

E-commerce

India