Amid widely talked about economic gloom, the Indian e-mobility sector is set for a roll. The e-logistics sector, which has become one of the largest and fastest growing logistics markets globally and is all set to swell to a whopping $9 billion industry, according to a recent Redseer Strategy Consultants report.
The Indian e-logistics sector is likely to witness a compound annual growth rate of 35%. According to the report, the number of e-commerce logistics shipments is expected to grow by four times in the next five years.
“Thanks to new-age tech enabled players who have entered India’s logistics arena, it is now easier for small- and medium-sized businesses to transport goods, and there is a drastic increase in the speed and efficiency in which parcels are delivered,” the report said.
Among some of the top e-logistic players include Delhivery, which is well positioned at the cross-section of the various logistics sector growth drivers including infrastructure, offline commerce, digital consumption, and adoption of technology and data sciences.
The ecommerce logistics sphere has contributed to the overall growth of India’s logistics sector and enabled the e-retail boom in India. Proliferation of smartphones and localisation of the internet in non-English languages is drawing in new consumers from non-metro locations into the internet economy and creating new demand for online commerce, thus paving the need for disruption in logistics.
According to the report, the availability of multiple payment options such as UPI, no-cost EMI, BNPL (buy now, pay later) etc. are further driving the adoption of digital commerce by more consumers, thereby creating a need for ecommerce logistics.
“Multiple segments in the India logistics market are addressable by full-stack-tech- enabled logistics service providers. There seems to be great headroom for growth as tech-enabled logistics players venture into adjacent segments such as hyperlocal delivery, express delivery, trucking, and more,” the report said.
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