India E-commerce Logistics Market is expected to reach US$ 11.48 billion by 2027

B2C to DominateIndia E-Commerce Logistics Market during 2020–2027

According to a new market research study on “India E-Commerce Logistics Market Forecast to 2027 –COVID-19 Impact and Analysis – by Service Type, Operational Area, and EndUser,” the market is expected to reach US$ 11.48 billion by 2027 from US$ 2.93 billion in 2019; it is estimated to grow at a CAGR of 18.8% from 2020 to 2027. The report provides trends prevailing in the India e-commerce logistics marketalong with the drivers and restraints pertaining to the market growth.The Indian e-commerce logistics market is flourishing due to increase in internet penetration, rise in adoption of smartphones, favorable demographics, surge in acceptability of online payment, and emergence of several new e-commerce players on social media. Further, supportive government initiatives to boost infrastructure development and implantation of GST have improved the delivery of e-commerce goods across the country. However, the cybersecurity risk is expected to hamper the Indian e-commerce logistics market to a certain extent.

The India e-commerce logistics market is segmented into service type, operational area, and enduser.Based on service type, the market is segmented into transportation, warehousing, and value-added services. In 2019, the transportation segment held the largest share of the market. In terms ofoperational area, the market is segmented into domestic and international. The domestic segmentis expected to register the highest CAGR during the forecast period. Based on enduser, the market is bifurcated into B2B and B2C. The B2C segment contributed a substantial share to the market in 2019.

The COVID-19 pandemic has resulted in fueling the growth of the e-commerce logistics sector. E-commerce players are seeking alternative warehousing locations to help in the continuity of their business, along with mitigating delivery delays. With the rising awareness for social distancing among Indians, people have started opting for online platforms more than before, even in rural areas. Further, extended lockdowns in several countries have resulted in disrupting the supply chain. E-commerce logistics players are leveraging options, such as contactless deliveries, to mitigate the risk of infection, further boosting the demand for online sales. Also, several retailers across the country are going online to expand their reach. It has offered a wider choice of goods to the customers at competitive pricing, thus boosting e-commerce sales. According to a report published by Unicommerce titled – E-commerce Trends Report 2020, as of June 2020, India's e-commerce industry noticed an overall order-volume growth of 17% post the outbreak of COVID-19.

Shiprocket; FedEx Corporation; Ecom Express Private Limited; Gati-Kintetsu Express Private Limited; Ekart Logistics; Mahindra Logistics Ltd.; Amazon.com, Inc.; Aramex; Blue Dart Express Limited; and Delhivery Pvt Ltd. are among the leading companies in the India e-commerce logistics market.These companies are focused on adopting organic growth strategies, such as product launches and expansions, to sustain their position in the dynamic market. For instance, in 2018, Ecom Express Private Limited announced the expansion of its services by 8,000 PIN codes in India. Thus, expanding its reach from 17,000 PIN codes to over 25,000 PIN codes.In January-2020, Mahindra logistics Ltd. launched a distribution center for the pharma industry in North India. This facility manages the distribution and warehousing for its clients.

India E-Commerce Logistics Market

The report segments the India e-commerce logistics market as follows:

India E-Commerce Logistics Market– by Service Type

• Transportation
• Warehousing
• Value-Added Services

India E-Commerce Logistics Market– by Operational Area

• Domestic
• International

India E-Commerce Logistics Market– by EndUser

• B2B
• B2C