Summary

The Indian third-party logistics (3PL) market is dynamic and rapidly expanding. The increasing adoption of 3PL services across numerous industries, such as e-commerce, retail, automotive, and pharmaceuticals, is a major driver driving the growth of the Indian third-party logistics (3PL) market. The development of e-commerce has driven the demand for efficient logistics solutions in particular. In addition, there is a rising emphasis in 3PL operations on technological integration, such as the use of automation, artificial intelligence, and cloud-based platforms for greater tracking and real-time visibility. The establishment of the Goods and Services Tax (GST), for example, has aided in the simplification of logistical operations, resulting in increased efficiency and cost savings. There is also an increase in demand for value-added services like packaging, reverse logistics, and supply chain consulting, driving the growth of the Indian third-party logistics (3PL) market. In recent years, India's e-commerce sector has experienced extraordinary growth, fueling the country's third-party logistics (3PL) market's rapid expansion. As more people purchase online, there is a greater need for efficient and dependable logistics services to manage the complicated supply chain processes involved. Third-party logistics providers provide end-to-end solutions such as warehousing, inventory management, transportation, and last-mile delivery, allowing e-commerce businesses to concentrate on their primary business. This symbiotic link between e-commerce and 3PL has accelerated the Indian market's growth, drawing investments, technological breakthroughs, and strategic collaborations, facilitating the smooth movement of goods and driving overall industry growth. India's 3PL market has experienced significant growth in recent years, primarily driven by the country's expanding economy, increasing trade, and the growth of e-commerce. As businesses seek more efficient supply chain solutions, the demand for 3PL services has surged.

According to the research report "India Third-Party Logistics (3PL) Market Overview, 2028," published by Bonafide Research, the India Third-Party Logistics (3PL) market is predicted to grow with more than 8.50% CAGR from 2023 to 2028. India has a diversified geographical landscape, stretching from the Himalayas in the north to the Indian Ocean in the south. This variability creates logistical issues, such as different road conditions, congested urban areas, and varying temperature zones, making last-mile delivery extremely difficult. In the direction to boost manufacturing, exports, and digitization, the Indian government has developed projects such as "Make in India" and "Digital India." These activities have an impact on the logistics and supply chain landscape, offering opportunities for third-party logistics providers. India shares borders with China, Pakistan, Nepal, Bhutan, and Bangladesh, among others. Customs clearance, border infrastructure, and regulatory compliance are key logistical obstacles that cross-border trade entails. The informal or unorganized sector of India's logistics market is large, often consisting of tiny local transporters and couriers. The coexistence of legal and informal logistics companies further complicates the market. Agriculture is an important industry in India. The third-party logistics (3PL) industry is important in the transportation and distribution of agricultural products such as grains, vegetables, fruits, and dairy products. Government initiatives like the "National Logistics Portal" aim to strengthen warehousing infrastructure, which is important for 3PL companies that rely on warehouses for storage and distribution. India is prone to natural disasters. 3PL providers often play a critical role in disaster relief efforts, including the efficient and rapid distribution of relief materials.

Based on mode of transport market is bifurcated into roadways, railways, waterways and airways. Railways mode of transport is growing at significant pace in India third-party logistics market. Rail travel is frequently more cost-effective than vehicle transport for long-distance cargo transit. It enables the efficient transfer of large products and can drastically cut transportation expenses for organizations. The government has implemented a number of regulatory measures to encourage the expansion of rail transportation. Initiatives such as "Make in India" and "Atmanirbhar Bharat" have encouraged the use of railways in supply chain operations. India's railways are constantly attempting to improve their efficiency and speed. New initiatives, such as dedicated freight lanes, are reducing transit times and increasing rail reliability. India's transportation network is frequently crowded, particularly in major urban areas. The expansion of rail transit serves to alleviate the pressure on roads, resulting in less traffic congestion and speedier road mobility for other goods. Based on services market is segmented into domestic transportation management (DTM), international transportation management (ITM), dedicated contract carriage (DCC), warehousing & distribution (W&D), and value-added logistics by services (VAS). Among them domestic transportation management (DTM) service type is expected to lead the market of India third- party logistics market. India has a significant and complicated transportation network that encompasses a variety of forms of transportation, including highways, trains, and waterways. It is critical for enterprises to manage this network properly, and DTM services are designed to optimize domestic transportation operations. India's industrial base is diversified, encompassing manufacturing, agriculture, pharmaceuticals, automobiles, and consumer goods. DTM services can be tailored to satisfy the transportation requirements of these various businesses. India has a high population density, particularly in cities. DTM services are critical for managing the efficient and timely delivery of goods to densely populated cities with heavy traffic and last-mile delivery difficulties.

In terms of end user industry market is divided into manufacturing, healthcare, retailing, e-commerce, automotive, food & groceries, technological, and others. Among them manufacturing industry is major end user of third-party logistics in India. In India, manufacturing activities can entail complicated supply chains, including various components, raw materials, and finished goods. 3PL providers aid in the efficient management and streamlining of these complex supply chains. Manufacturing is a highly competitive industry where cost efficiency is crucial. By optimizing routes, avoiding empty miles, and providing competitive pricing, 3PL services can help cut transportation expenses. Seasonality, market changes, and economic situations can cause oscillations in production and demand in manufacturing enterprises. 3PL providers provide scalable solutions that can adapt to these changes without requiring large expenditures in transportation infrastructure. Warehouse space is frequently required by manufacturing companies to store raw materials, work-in-progress inventory, and finished products. Warehousing and inventory management services are provided by 3PL providers in order to optimize space, decrease carrying costs, and enable just-in-time delivery to production lines. 3PL suppliers assist firms in optimizing their inventory, minimizing surplus stock, and guaranteeing that the appropriate quantity of raw materials and finished products is available when required.

Considered in this report:
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• India Third-Party Logistics (3PL) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Mode of Transport:
• Roadways
• Railways
• Waterways
• Airways

By Services:
• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VAS)

By End User:
• Manufacturing
• Healthcare
• Retailing
• Food & Groceries
• Automotive
• E-commerce
• Technological
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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