Indian Logistics Industry Outlook, 2020

Indian Logistics Industry Outlook, 2020

Advancements in Digital Technologies, Changing Consumer Preferences Due to eCommerce, Government Reforms, and Shift in Service Sourcing Strategies are Expected to Lead the Transformation of the Indian Logistics Ecosystem

RELEASE DATE
20-Mar-2020
REGION
Asia Pacific
Research Code: PAE4-01-00-00-00
SKU: TP00197-AP-MO_24127

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Description

Advancements in digital technologies, changing consumer preferences due to eCommerce, government reforms, and shift in service sourcing strategies are expected to lead the transformation of the Indian logistics ecosystem. Digitalization will improve the efficiency and performance in freight management and port operations. Warehouse automation will help achieve operational efficiencies to counter supply-chain cost pressures in the industry. Increased investment in infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics landscape in India. India’s GDP is expected to reach 3.02 trillion in 2020, representing about 4% of the global GDP. Strong growth supported by government reforms, transportation sector development plans, growing retail sales, and the eCommerce sector are likely to be the key drivers of the logistics industry in India. Online freight platforms and aggregators are on the rise in the Indian logistics market, given the need for low entry barriers and less capital investment compared to setting up of an asset-based business model. Manufacturing in India holds the potential to contribute up to 25%–30% of the GDP by 2025 which will drive the growth of the warehousing segment in India.

The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025. It has been awarded infrastructure status which has made it easier for investment inflows and has become a major growth driver of the logistics industry. eCommerce is another major segment which is expected to support growth of the logistics industry during the forecast period. Increasing investments and trade point toward a healthy outlook for the Indian freight sector. Port capacity is expected to grow at a CAGR of 5% to 6% by 2022, thereby, adding a capacity of 275 to 325 MT. Indian Railways aims to increase its freight traffic from 1.1 billion tons in 2017 to 3.3 billion tons in 2030. Freight traffic on airports in India has the potential to reach 17 million tones by FY40. Lack of supporting infrastructure, automated material handling systems, and high manual process interference are some key areas where the Indian air cargo industry lags its global peers.

Grant of infrastructure status to logistics, introduction of E-Way bill, and GST implementation are set to streamline the logistics sector in India. Setting up of a logistics division under Department of Commerce, technology upgrades, and development of dedicated freight corridors and logistics parks are also major moves to upgrade the logistics landscape.

Logistics start-ups in India gained a substantial foothold after the onset of eCommerce, and there are several new companies that are gaining traction in the industry. Online platforms have increased competition and lowered freight costs with real-time data availability and a transparent value chain. It is imperative for logistics service providers to innovate and adapt to the transforming logistics landscape.


Research Highlights

This study analyses the Indian logistics market and provides a 2020 outlook in terms of various modes and segments of logistics:  air freight, ocean freight, road freight, cold chain transportation, eCommerce, and warehousing. It also provides a global logistics market snapshot, India’s economic trends and forecast for 2020, economic sectors and share of logistics services in India, logistics market size and forecast till 2025, freight traffic, including road, rail, and air traffic. It covers government policies focused on logistics development, emerging business models, opportunities with digital technologies, key trends affecting the industry that include latest government regulations, key start-ups, major challenges, and disruptive innovations in the industry. It summarizes growth opportunities and strategic imperatives for success and growth in the market.

Author: Urvashi Mishra

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Executive Summary—Outlook by Logistics Segments

Key Findings—Top Predictions for 2020

Key Findings—Top Predictions for 2020 (continued)

Executive Summary—Opportunities with Digital Technologies

Executive Summary—Opportunities with Digital Technologies (continued)

Research Scope and Methodology

Key Questions this Study will Answer

Logistics Industry Segments

Global Economy in 2019—Top Trends

Global Economic Outlook 2020—Top Predictions

Global Economic Outlook 2020—Top Predictions (continued)

2020 World GDP Growth Snapshot

Advanced Economies—Key Predictions for 2020

Emerging Economies—Key Predictions for 2020

2020 Growth Opportunities—Top 3 Opportunities by Region

2020 Regional Trends—GDP Growth, Risks, and Policy

Indian Economic Outlook 2020—Key Data Highlights

Indian Economy in 2019—Top 5 Trends

India Economic Outlook 2020—Top 5 Predictions

India Economic Outlook 2020—Top 5 Predictions (continued)

Economic Sectors and Share of Logistics Services

India Logistics Market Size Forecast

India Ranked 44th in the Logistics Performance Index 2018

Growth Prospects and Industry Structure by Segments

3PL Market in India

Major Industrial Clusters in India

Warehousing Market in India

Emerging Warehouse Technologies in India

eCommerce Logistics Market in India

eCommerce Retail Drivers and Retail Logistics Landscape

Cold Chain Logistics Market in India

India Freight Traffic Forecast

Sea Freight in India

Sea Freight—The Road Ahead

Road Freight in India

Rail Freight in India

Air Freight in India

Key Enablers and Constraints for the Indian Freight Industry

Latest Government Regulations Set to Streamline Logistics

Latest Government Regulations Set to Streamline Logistics (continued)

Key Start-ups and Their Capabilities

Key Challenges

Business Models—Emerging eCommerce Models

Digital Transformation in the Entire Logistics Ecosystem

Disruptive Innovations

Impact of Digital Technologies in the Logistics Ecosystem

Growth Opportunities in Technology-led Transformation

Growth Opportunity—Logistics

Strategic Imperatives for Success and Growth

The Last Word

Legal Disclaimer

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

Related Research
Advancements in digital technologies, changing consumer preferences due to eCommerce, government reforms, and shift in service sourcing strategies are expected to lead the transformation of the Indian logistics ecosystem. Digitalization will improve the efficiency and performance in freight management and port operations. Warehouse automation will help achieve operational efficiencies to counter supply-chain cost pressures in the industry. Increased investment in infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics landscape in India. India’s GDP is expected to reach 3.02 trillion in 2020, representing about 4Percentage of the global GDP. Strong growth supported by government reforms, transportation sector development plans, growing retail sales, and the eCommerce sector are likely to be the key drivers of the logistics industry in India. Online freight platforms and aggregators are on the rise in the Indian logistics market, given the need for low entry barriers and less capital investment compared to setting up of an asset-based business model. Manufacturing in India holds the potential to contribute up to 25Percentage–30Percentage of the GDP by 2025 which will drive the growth of the warehousing segment in India. The logistics market in India is forecasted to grow at a CAGR of 10.5Percentage between 2019 and 2025. It has been awarded infrastructure status which has made it easier for investment inflows and has become a major growth driver of the logistics industry. eCommerce is another major segment which is expected to support growth of the logistics industry during the forecast period. Increasing investments and trade point toward a healthy outlook for the Indian freight sector. Port capacity is expected to grow at a CAGR of 5Percentage to 6Percentage by 2022, thereby, adding a capacity of 275 to 325 MT. Indian Railways aims to increase its freight traffic from 1.1 billion tons in 2017 to 3.3 billion tons in 2030. Freight traffic on airports in India has the potential to reach 17 million tones by FY40. Lack of supporting infrastructure, automated material handling systems, and high manual process interference are some key areas where the Indian air cargo industry lags its global peers. Grant of infrastructure status to logistics, introduction of E-Way bill, and GST implementation are set to streamline the logistics sector in India. Setting up of a logistics division under Department of Commerce, technology upgrades, and development of dedicated freight corridors and logistics parks are also major moves to upgrade the logistics landscape. Logistics start-ups in India gained a substantial foothold after the onset of eCommerce, and there are several new companies that are gaining traction in the industry. Online platforms have increased competition and lowered freight costs with real-time data availability and a transparent value chain. It is imperative for logistics service providers to innovate and adapt to the transforming logistics landscape.--BEGIN PROMO--

Research Highlights

This study analyses the Indian logistics market and provides a 2020 outlook in terms of various modes and segments of logistics:  air freight, ocean freight, road freight, cold chain transportation, eCommerce, and warehousing. It also provides a global logistics market snapshot, India’s economic trends and forecast for 2020, economic sectors and share of logistics services in India, logistics market size and forecast till 2025, freight traffic, including road, rail, and air traffic. It covers government policies focused on logistics development, emerging business models, opportunities with digital technologies, key trends affecting the industry that include latest government regulations, key start-ups, major challenges, and disruptive innovations in the industry. It summarizes growth opportunities and strategic imperatives for success and growth in the market.

Author: Urvashi Mishra

More Information
No Index No
Podcast No
Author Urvashi Mishra
Industries Transportation and Logistics
WIP Number PAE4-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9B01-A6,9674-A6,9694,9AF6-A6