Road logistics market size in India 2023: Overview and forecast
Road logistics is a crucial part of the transportation industry, playing a vital role in the movement of goods across India. With a population of over 1.4 billion people and a rapidly growing economy, India has a huge demand for road logistics services. Further, the road logistics industry in India is expected to continue growing in the coming years.
Market size and growth forecast
According to a report by ResearchAndMarkets, the road logistics market in India is estimated to be $435.43 billion in 2023 and is expected to grow at a CAGR of 8.36% between 2023 and 2028. The report also estimates that the market will be worth $650.52 billion by 2028. The growth in the road logistics market can be attributed to several factors, including:
- Rising demand for e-commerce: The increasing popularity of e-commerce has led to a surge in demand for logistics services, particularly in the last-mile delivery segment.
- Government initiatives: The Indian government has launched several initiatives to improve the country’s transportation infrastructure, including the Bharatmala project, which aims to develop 83,677 km of roads across the country.
- Growing manufacturing sector: India has a rapidly growing manufacturing sector, which is driving demand for logistics services.
- Increasing urbanisation: As more people move to urban areas, the demand for logistics services in cities is also increasing.
Given these factors, it is clear that the road logistics market in India has significant potential for growth in the coming years.
Key players in the road logistics market in India
The road logistics market in India is highly fragmented, with a large number of small and medium-sized companies operating in the sector. However, there are several major players in the market, including both domestic and international companies.
Domestic players include companies like TCI, Gati, and Blue Dart, which have a strong presence in the Indian market. International players include companies like DHL, FedEx, and UPS, which have also established a foothold in India.
These logistics companies compete on several factors, including pricing, service quality, and technology. To remain competitive, many companies are investing in technology to improve their operations, such as implementing GPS tracking systems and using automation to streamline their processes.
Challenges and opportunities in the road logistics market in India
Despite the significant growth potential in the road logistics market in India, there are several challenges that the industry faces. It includes:
- One of the biggest challenges is the state of the country’s transportation infrastructure. India’s roads are often congested, poorly maintained, and prone to accidents, which can lead to delays and increased costs for logistics companies.
- Another challenge is the lack of standardisation in the road logistics industry in India. There are no uniform regulations or guidelines governing the industry, which can lead to inconsistencies in service quality and pricing. This can make it difficult for logistics companies to operate efficiently and compete effectively in the market.
However, there are also several opportunities for growth and innovation in the road logistics market in India. These include:
- One such opportunity is the use of technology to improve operations and increase efficiency. Many logistics companies are investing in automation and digital platforms to streamline their processes and improve the customer experience.
- Another opportunity is the growing trend towards sustainable and environmentally friendly logistics practices. As concerns about climate change and environmental sustainability continue to grow, logistics companies are exploring ways to reduce their carbon footprint and adopt more eco-friendly practices.
Overall, the road logistics market in India presents both challenges and opportunities for companies operating in the industry. By addressing these challenges and taking advantage of these opportunities. Logistics companies can position themselves for long-term success in the market.
Disclaimer: Please be aware that the information presented in this article may be based on available knowledge and resources at the time of writing, and may not be comprehensive or current. It is advisable for readers to independently verify the details before making any decisions based on the information provided.