India Logistics Market Size (2025 – 2030)

The India Logistics Market was valued at USD 237.8 billion in 2024 and is projected to reach a market size of USD 435.3 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 12.85%. 

The India logistics market plays a vital role in driving economic growth and facilitating seamless movement of goods across the country. It comprises various segments, including transportation, warehousing, freight forwarding, and value-added services, catering to industries such as retail, e-commerce, manufacturing, and agriculture. With increasing globalization and trade, the demand for efficient supply chain management has surged, pushing companies to adopt advanced logistics solutions. Government initiatives like Gati Shakti, Bharatmala Pariyojana, and Sagarmala Project are enhancing infrastructure, reducing transit times, and improving connectivity across major trade routes. The sector is experiencing a shift towards digitalization, with technologies like artificial intelligence (AI), blockchain, and IoT revolutionizing logistics operations. The rapid expansion of e-commerce, rising third-party logistics (3PL) adoption, and increased foreign direct investment (FDI) are further accelerating growth. Additionally, the push for sustainability has led to the rise of green logistics, electric vehicles, and fuel-efficient transportation methods.

Key Market Insights:

• The Indian logistics market is witnessing rapid transformation, driven by rising demand from key sectors such as e-commerce, manufacturing, and retail. According to industry reports, the logistics sector contributes around 14% of India's GDP, with efforts underway to reduce logistics costs to 8-10% of GDP in line with global standards. The e-commerce logistics segment alone has grown by over 35% annually, driven by the rise of digital commerce and last-mile delivery innovations. Additionally, the demand for third-party logistics (3PL) services is expanding at a CAGR of over 10%, as businesses seek to optimize supply chain efficiency.
• The transportation segment remains dominant, with road transport handling nearly 60% of freight movement in India. However, rail freight is gaining traction, especially after the launch of Dedicated Freight Corridors (DFCs), which aim to increase rail freight share to 40% from the current 27%. The air cargo market is also growing steadily, with annual tonnage increasing by approximately 8-10%, fueled by high-value shipments, pharmaceutical logistics, and international trade expansion. The Indian warehousing market is experiencing strong demand, particularly in Grade A warehouses, which have grown by 30% in recent years due to rising investments from logistics parks and real estate developers.
• Technology-driven advancements are reshaping the logistics landscape, with over 70% of logistics companies adopting automation, AI, and data analytics to enhance operational efficiency. The use of IoT-enabled tracking systems has improved supply chain visibility, reduced transit delays, and enhanced inventory management. Moreover, the adoption of electric vehicles (EVs) in urban logistics is rising, with over 15% of last-mile delivery vehicles expected to be EVs by 2025, supporting India's sustainability goals.

India Logistics Market Drivers:

Rapid Growth of E-Commerce and Digital Marketplaces is Driving the Expansion of Logistics Services Across India

The booming e-commerce sector in India, driven by platforms like Amazon, Flipkart, and Meesho, has significantly increased the need for fast, efficient, and cost-effective logistics solutions. The shift in consumer behavior toward online shopping has accelerated last-mile delivery services, warehousing capabilities, and supply chain optimization. With same-day and next-day delivery becoming industry standards, logistics providers are investing in automation, route optimization, and fulfillment centers to cater to this surge in demand.

Government Initiatives and Infrastructure Development are Revolutionizing the Indian Logistics Ecosystem

The Indian government has launched various policies such as the National Logistics Policy (NLP) and Gati Shakti Yojana, aimed at reducing logistics costs and improving overall efficiency. Significant investments in road networks, highways, dedicated freight corridors (DFC), and port modernization projects are facilitating smoother movement of goods across states. With the Bharatmala and Sagarmala projects improving road and port connectivity, logistics operations are becoming faster, more cost-effective, and technologically advanced.

Advancements in Technology and Automation are Enhancing Operational Efficiency in Logistics

The adoption of AI-driven route optimization, GPS tracking, blockchain for supply chain transparency, and IoT-enabled fleet management is reshaping India's logistics industry. Companies are increasingly leveraging warehouse automation, robotics, and cloud-based transportation management systems (TMS) to minimize errors, optimize inventory, and reduce delays. These innovations are leading to enhanced efficiency, cost reduction, and improved customer satisfaction.

Rising Demand for Cold Chain Logistics is Driving the Need for Temperature-Controlled Transportation and Storage

With the rise of pharmaceutical, food processing, and perishable goods industries, the demand for specialized cold chain logistics is surging. India’s push towards vaccine distribution, frozen food consumption, and organic produce exports is fueling investments in temperature-controlled transportation and warehousing facilities. The increasing need for compliance with global food safety standards and supply chain traceability is further encouraging logistics players to upgrade their cold chain capabilities.

India Logistics Market Restraints and Challenges:

High Logistics Costs and Inefficiencies Continue to Hinder Market Growth

Despite rapid advancements in infrastructure and technology, the Indian logistics market still faces challenges related to high transportation costs, inefficient supply chain management, and regulatory bottlenecks. Fragmentation within the sector, with a large number of unorganized players, leads to operational inefficiencies and a lack of standardization. Poor road conditions in certain regions, congestion at major ports, and delays in freight movement contribute to increased turnaround times. Additionally, compliance with multiple state-level taxes and regulatory frameworks creates complexities for logistics providers. The lack of a skilled workforce and limited adoption of advanced technologies among small and mid-sized logistics firms further restrict the market's ability to achieve full efficiency.

India Logistics Market Opportunities:

The Indian logistics market presents significant opportunities fueled by rapid digitalization, government initiatives, and infrastructure advancements. The implementation of AI, IoT, blockchain, and automation is streamlining supply chain operations, enhancing efficiency, and reducing costs. Government programs such as the PM Gati Shakti initiative, Bharatmala, and Sagarmala projects are improving connectivity through better road, rail, and port infrastructure, enabling faster and cost-effective freight movement. Additionally, the booming e-commerce sector and rising demand for third-party logistics (3PL) services offer growth potential for organized players. The increasing focus on green logistics and sustainability, with investments in EV fleets and alternative fuel solutions, further opens doors for innovation and expansion.

INDIA LOGISTICS MARKET REPORT COVERAGE:

India Logistics Market Segmentation:

India Logistics Market Segmentation: By Service Type:

• Freight Forwarding
• Warehousing
• Value-Added Services
• Express and Parcel
• E-commerce Logistics

Freight forwarding remains the dominant segment in the Indian logistics market, fueled by rising international trade, industrial expansion, and increased multimodal transport connectivity. The segment benefits from robust manufacturing growth, government initiatives like 'Make in India,' and the expansion of ports, rail networks, and dedicated freight corridors, which enhance efficiency and reduce transit times. Additionally, the integration of digital freight platforms, AI-driven route optimization, and blockchain technology is making freight forwarding more reliable and cost-effective.

The e-commerce logistics segment is witnessing the fastest growth, fueled by rapid digital adoption, rising consumer demand for quick deliveries, and the expansion of online marketplaces. The rise of hyperlocal deliveries, same-day shipping, and last-mile connectivity has driven massive investments in technology-driven warehousing, automated sorting centers, and EV-based delivery fleets. With the advent of AI, robotics, and warehouse automation, e-commerce logistics is evolving rapidly to meet the growing demand for speed, accuracy, and cost efficiency, making it a game-changer in India's logistics landscape.

India Logistics Market Segmentation: By Transportation Mode:

• Road
• Rail
• Air
• Sea
• Multimodal

Road transportation is the dominant segment in India’s logistics market, driven by extensive national and state highway networks, growing demand for last-mile deliveries, and the rise of e-commerce logistics. With over 60% of freight movement dependent on roads, factors such as government investments in expressways, logistics parks, and vehicle electrification initiatives are further boosting efficiency. Additionally, digital freight management platforms and fleet tracking solutions are enhancing operational transparency and cost-effectiveness in road logistics.

Multimodal transport is the fastest-growing segment, fueled by the need for seamless, cost-effective, and faster logistics solutions. The integration of rail-road, sea-air, and inland waterway logistics is improving efficiency while reducing transit costs and carbon emissions. Government initiatives like Gati Shakti, dedicated freight corridors, and port modernization projects are fueling this shift, while digitalization, containerization, and automation are making multimodal logistics more reliable, sustainable, and scalable across industries.

India Logistics Market Segmentation: By End-Use Industry:

• Retail and E-commerce
• Manufacturing
• Healthcare
• Automotive
• Food & Beverages

Retail and e-commerce logistics dominate India's logistics sector, driven by the rise in online shopping, quick commerce, and increasing smartphone penetration. Companies are expanding warehousing networks, investing in last-mile delivery solutions, and utilizing AI-driven supply chain optimization to enhance efficiency. The rise of direct-to-consumer (D2C) brands, hyperlocal delivery services, and flexible fulfillment models further strengthens this segment, making it the most influential player in India's logistics landscape.

The healthcare sector is the fastest-growing logistics segment, driven by the rising demand for pharmaceuticals, vaccines, and medical equipment across urban and rural areas. Stringent regulatory requirements, the expansion of cold chain infrastructure, and the growth of telemedicine services are pushing logistics companies to invest in temperature-controlled transport, specialized handling, and automated inventory management. The COVID-19 pandemic accelerated the need for efficient healthcare logistics, making it a key area of expansion in India's supply chain ecosystem.

India Logistics Market Segmentation: By Distribution Channel:

• B2B
• B2C
• C2B
• C2C
• Government Procurement

The B2B (Business-to-Business) logistics segment dominates India's logistics market, fueled by large-scale industrial supply chains, manufacturing operations, and trade partnerships. Major industries, including automotive, FMCG, and pharmaceuticals, rely heavily on bulk transportation, warehousing, and supply chain integration. The expansion of industrial corridors, dedicated freight corridors, and make in India initiatives further fuel the growth of B2B logistics, making it the backbone of the sector.

B2C (Business-to-Consumer) logistics is experiencing the fastest growth, thanks to the e-commerce revolution, hyperlocal deliveries, and increasing consumer expectations for same-day or next-day delivery. Companies are investing in automated fulfillment centers, AI-powered route optimization, and expanding last-mile delivery networks to cater to the growing demand. The rise of quick commerce, digital payments, and doorstep delivery services has made B2C logistics a high-growth segment with strong future potential.

Market Segmentation: Regional Analysis:

North and West India hold the dominant share of the Indian logistics market, driven by major industrial hubs, manufacturing centers, and strong trade networks. Delhi-NCR, Mumbai, Gujarat, and Maharashtra serve as key logistics corridors, supported by robust road and rail infrastructure, major ports, and dedicated freight corridors. The presence of large-scale warehousing facilities, industrial parks, and export zones further strengthens their leadership in the logistics sector. South and East India are experiencing the fastest growth in logistics, driven by rapid urbanization, increased e-commerce penetration, and improved transportation networks. Cities like Bengaluru, Chennai, Hyderabad, and Kolkata are emerging as key logistics hubs due to new-age warehousing facilities, strong port connectivity, and expanding highway projects. The rise of digital logistics platforms, cold chain expansion, and last-mile delivery innovations is further accelerating the growth in these regions.

COVID-19 Impact Analysis on the India Logistics Market:

The COVID-19 pandemic had a remarkable impact on the Indian logistics market, disrupting supply chains, transportation networks, and warehousing operations. Nationwide lockdowns and restrictions on movement led to delays in freight transportation, labor shortages, and an increase in logistics costs. However, the crisis also accelerated the adoption of digital logistics solutions, automation, and contactless deliveries, particularly in e-commerce and healthcare logistics. The post-pandemic period has witnessed a strong recovery with increased investment in infrastructure, technology-driven logistics, and improved supply chain resilience, making the sector more agile and efficient.

Latest Trends/ Developments:

The digital transformation of the logistics industry in India is gaining momentum, with the adoption of Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain to enhance supply chain visibility and efficiency. Companies are rapidly leveraging real-time tracking, automated warehouses, and predictive analytics to optimize delivery processes. Additionally, the growth of e-commerce logistics has driven the demand for last-mile delivery solutions, including drones, electric vehicles (EVs), and hyperlocal delivery models, ensuring faster and more sustainable operations.

Sustainability and green logistics are emerging as key priorities, with logistics firms investing in electric fleets, renewable energy-powered warehouses, and eco-friendly packaging to reduce their carbon footprint. Additionally, the government’s push for infrastructure development, such as the Gati Shakti National Master Plan and Bharatmala Project, is remarkably improving road, rail, and port connectivity, reducing transit times and costs. The shift towards multimodal transportation, integrating rail, road, sea, and air logistics, is further enhancing supply chain efficiency, making India a more competitive logistics hub.

Key Players:

1. Allcargo Logistics Ltd.
2. Blue Dart Express Ltd.
3. Container Corporation of India Ltd. (CONCOR)
4. Delhivery Ltd.
5. DHL Express India Pvt. Ltd.
6. Ecom Express Pvt. Ltd.
7. FedEx Express India Pvt. Ltd.
8. Gati Ltd.
9. Mahindra Logistics Ltd.
10. Safexpress Pvt. Ltd.