With rural population accounting for around two-thirds of the Indian population, coupled with affordability of smart phones and data plans, e-commerce logistic opportunities will gain steam in the future.
Updated Technology such as GPS Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics will be used for tracking Inventory and delivering products in the future.
Significant investments in digital channels across Indian languages are expected to rise in the near future. Further, the Government of India’s push towards digital initiatives is expected to accelerate outreach and adoption of digital wallets.
Rise in demand from Tier 2 and below cities: Currently most of the demand comes from metro and tier I cities. However, by 2025 this trend is expected to change, as tier II and lesser cities are emerging as new demand centers owing to higher internet penetration. Hence, it is estimated that in the next five years, a high proportion of demand is expected to come from tier II and below cities primarily due to cheap data plans, increase in usage of Smartphone, rise in per capita income and increasing propensity to purchase online in these areas.
Technological Disruptions: The pace of new technological innovations has been extremely rapid in India. Companies are embracing advanced technologies to meet higher consumer expectations. To keep pace with digital commerce, technological disruptions are revolutionizing the e-commerce supply chain industry. Technologies such as IoT, advanced algorithms, data analytics, Artificial Intelligence (AI) and automation are emerging to streamline operations of the companies.
Expansion of Supply Chain Network: With the increasing potential of local and zonal shipments, large E-commerce logistic companies are focusing on establishing new Fulfillment Centers near the end consumers to increase speed of delivery and to cater to larger parcel sizes. Moreover, With Tier II and beyond cities driving the growth, several e-retailers are looking at expanding their network via strategic alliances and logistics partnerships in these areas.
The report titled “Indian E-commerce Logistics Industry Outlook to 2025- Driven by Changing Shopping Patterns and Increasing Demand of Fast Delivery Services” by Ken Research suggested that the E-commerce Logistics Industry of India is expected to grow in the near future due to increased demand from Tier 2 and below cities owing to increased internet penetration in these areas. Moreover, changing shopping patterns, increasing requirement of fast delivery services and usage of AI, Big Data analytics, and Block chain Technology to improve the customer experience will also play major role in the industry’s future growth. The Industry is expected to register a positive five year CAGR of 23.6% in terms of revenue during the forecast period FY’2020-FY’2025F.
Key Segmentations Covered in India E-commerce Logistics Industry:-
By Shipment Location (Number of Shipments)
By Type of Logistics Player (Revenue)
Third Party Logistics
By Major Product Categories (GMV)
By Delivery Time (Number of Shipments)
Same Day Delivery
One Day Delivery
Two-Four Day Delivery
Four and More than Four Day Delivery
By Cities (Number of Shipments)
By Payment Mode (Number of Shipments)
Cash on Delivery
By Product Return Rate (Number of Shipments)
Wrong Item Received
Product Not Matching
Key Target Audience:-
Third Party Logistic Companies
Potential Market Entrants
Time Period Captured in the Report:-
Historical Period – FY’2015-FY’2020
Forecast Period – FY’2020-FY’2025F
United Parcel Service
For More Information on the research report, refer to below link:-
Competitive Landscape of Top 8 Indonesia E-Commerce Logistics Companies and Leading 5 E-Commerce Marketplace Platform: Basis GMV, GMV Split, Order Volume, Shipment Profile, Logistics Cost, Network, Fleets and Customer Profiles
UAE Logistics and Warehousing Market Outlook to 2025 – By Road , Sea and Air Freight Forwarding; Domestic and International Freight, Major Flow Corridors, Integrated and Contract Freight Forwarding; By Warehousing (Industrial / Retail, CFS / Inland Container Depot & Cold Storage, Agriculture), End Users (Manufacturing, Retail, Food and Beverage, Automotive, Oil and Gas, Healthcare), Type of Warehouses; By Courier Express & Parcel Market , and, E-commerce Logistics
Ankur Gupta, Head Marketing & Communications