The Indian e-commerce logistics market is anticipated to grow at a CAGR of around 18.5% during the forecast period. The Indian government's push for digital initiatives is expected to accelerate the spread and adoption of digital wallets in the country propelling the growth of the Indian e-commerce logistics market. With rural India accounting for roughly two-thirds of the population, and smartphones and data plans becoming more affordable, e-commerce logistic opportunities will grow in the future. Furthermore, changing consumption patterns, an increase in the demand for quick delivery services, and the adoption of big data analytics, AI, and blockchain technology to enhance the customer experience also be playing a significant role in the industry's future growth. Moreover, the implementation of the Goods and Services Tax (GST) in the country has also had a positive impact on the e-commerce logistics market, as all indirect taxes have been consolidated into one enabling the logistics companies to improve the flow of goods inside the country. In addition, the average speed of goods moving through Indian roads is also much slower than the global average. As a result, it lengthens delivery times and slows the company's operations is the major challenge faced by Indian e-commerce logistics players. 

Impact of COVID-19 on the Indian e-commerce logistics market

The COVID-19 pandemic has fueled the expansion of the e-commerce logistics sector in India. With growing awareness of social distancing among Indians, people are increasingly turning to online platforms, even now in rural areas. In addition, several retailers across the country are expanding their reach by going online. It has increased e-commerce sales by providing customers with a wider range of goods at competitive prices. As per E-commerce Trends Report 2020, issued by Unicommerce in June 2020, India's e-commerce market witnessed a 17 % increase in overall order volume following the pandemic of COVID-19. However, the extended lockdown in the country has disrupted the supply chains leaving a negative impact on the Indian e-commerce industry.

Segmental Outlook 

The Indian e-commerce logistics market is segmented into products, services, and location. On the basis of services, the market is sub-segmented into transportation services, warehousing services, and other e-commerce logistics services.  Based on products the market is categorized into baby products, personal care products, electronics products, books, home furnishing products, apparel products, automotive products, and others. On the basis of location, the market is further segmented into urban, semi-urban, and rural. 

Indian E-Commerce Logistics Market Share by Service, 2020 (%)

The transportation service segment is estimated to hold the largest share in the global Indian e-commerce logistics market

Among service segments, the transportation segment is projected to have a significant share in the global Indian e-commerce logistics market due to the increasing growth of the Indian economy. Some other major drivers of the Indian transportation industry are rising exports, increased interstate movement of goods and passengers, an expanding FMCG sector, and a rise in disposable income. The current government's emphasis on infrastructure investment and favorable attitude toward the Private-Public Partnership (PPP) model creates opportunities for private players in the industry. Moreover, new FDI liberalization programs are designed to support the entry of new players, thereby increasing competition in these markets. Therefore, this will increase affordability, particularly in the aviation industry. 

Market Players Outlook

The key players of the Indian e-commerce logistics market include Amazon.com Inc, Blue Dart Express Ltd, Ekart Logistics, DTDC Express Ltd and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers, and acquisitions, collaborations, and new product launches, to stay competitive in the market. For instance, in December 2020, Amazon has invested over 11,400 crores (about $1.5 billion) in India's marketplace, payments, and wholesale business units during FY2019-20 to strengthen its position in the country's emerging digital commerce market. Although the majority of Amazon's business units in India including Amazon Transportation Services had registered a loss of Rs 48.1 crore during the fiscal year, the investments were made. The company aims to invest in India, with the long-term goal of allowing Indian customers to enjoy the convenience and ease of e-commerce and other digital products and services.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Indian e-commerce logistics market
• Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying 'who-stands-where in the market.