India Third Party Logistics (3PL) Market Share, Revenue, Trends, Demand, Growth Drivers, CAGR Status, Competition and Future Investment Opportunities 2033


India Third Party Logistics (3PL) Market Share, Revenue, Trends, Demand, Growth Drivers, CAGR Status, Competition and Future Investment Opportunities 2033: SPER Market Research

 Published: Jul-2024
 Author: SPER Analyst

India Third Party Logistics Market is projected to be worth USD 75.99 billion by 2033 and is anticipated to surge at a CAGR of 7.51%.

Third-party logistics (3PL) is the practice in which a manufacturer delegated logistics and distribution activities to an external service provider. Specialised services including inventory management, cross-docking, door-to-door delivery, and product packaging are offered by these third-party logistics firms. This outsourcing arrangement increases manufacturing flexibility by lowering total costs connected with product delivery and warehousing. Furthermore, it is a common business model in the logistics industry, allowing businesses to focus on their core operations. This strategic strategy not only saves money on shipping, but also improves the consumer experience.

India Third Party Logistics Market Driving Factors and Challenges

Drivers: The third-party logistics (3PL) market in India is on a strong development trajectory, fueled by a number of important drivers that highlight the changing dynamics of the logistics business. For starters, the increasing complexity of supply chain management has been a primary motivator for the use of 3PL services. Furthermore, as firms grow and diversify, third-party suppliers specialised logistical expertise becomes increasingly important. Furthermore, the emphasis on cost effectiveness and operational flexibility has increased third-party logistics' popularity in India. Furthermore, outsourcing logistics and distribution tasks to specialised organisations allows producers to reduce expenses associated with warehousing, transportation, and overall supply chain management.

Challenges: The high operational costs are a major barrier to market growth. Transportation expenditures are a significant portion of logistics costs. India's volatile gasoline prices are adding to rising transportation expenses. As fuel prices rise, logistics service providers raise their prices in order to maximise earnings. However, customers are putting further pressure on logistics service providers in the market to lower their pricing. Customers' ongoing need for cheaper prices puts pricing pressure on logistics service providers. 

Impact of COVID-19 on India Third Party Logistics Market
The COVID-19 epidemic had a negative impact on India's third-party logistics (3PL) business, disrupting the supply chain. With widespread lockdowns, restricted commodities movement, and reduced industrial activity, demand for 3PL services fell sharply. The logistics business faced issues such as labour shortages, transportation bottlenecks, and operational complications. The shift in consumer behaviour towards online shopping and e-commerce has resulted in an increase in demand for last-mile delivery and warehousing services. To preserve business continuity and satisfy evolving client demands, 3PL providers needed to quickly adapt to new safety rules, deploy contactless delivery, and improve their digital capabilities. The epidemic has altered the landscape of India's 3PL sector, emphasising the significance of agility and resilience.

India Third Party Logistics Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; All Cargo Logistics Limited, DHLSupply Chain, Future Supply Chain, Gati Litmited, GS Logistics, Kuehne Nagel Private Limited, Mahindra Logistics, Nitco Logistics, Schenker India, TVS Supply Chain Solutions, UPS.

India Third Party Logistics Market Segmentation:

By Services: Based on the Services, India Third Party Logistics Market is segmented as; Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution.

By End User: Based on the End User, India Third Party Logistics Market is segmented as; Automobile, Chemicals, Construction, Consumer and Retail, Energy, Manufacturing, Life Sciences and Healthcare, Technology, Others.

By Region: This research includes data for Eastern Region, Northern Region, Southern Region, Western Region.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.

Join Our SPER Panel

Our Global Clients

Our data-driven insights have influenced the strategy of 200+ reputed companies across the globe.
SPER-Astellas Pharma
SPER-Citi Bank
SPER-Johnson & Johnson


Market Research

We are the leading, full-service global market research and consulting company.

iso-1 iso-1 iso-1 ESOMAR
Secure Payments
SPER Payment Options
Contact HR

 [email protected]