India E-Commerce Logistics | Transport Market - Ken Research

India E-Commerce Logistics | Transport Market – Ken Research

Market Overview

In this digital era, the ascend in the requirement for delivery logistic enterprises with the assistance of digital technology in the industry has led to an augment in the performance of e-commerce industry due to which there would be a positive impression on the e-commerce logistics market. For example, blockchain revolution has further advancing the e-commerce logistics business by empowering clients to keep a track. This innovation would benefit e-commerce logistic business to run more cost-effective.

In addition to that, the appearance of cross-border e-commerce activities and changes in customer lifestyle, i.e., preferences for shopping at their fingertips is predicted to foster the global e-commerce logistics during the near foreseeable future. Also, stronger interactions and communication among customers and service providers would sustenance the market expansion.


Report Analysis

According to the report analysis, ‘India E-Commerce Logistics Market Outlook to 2025Driven by Changing Shopping Patterns and Increasing Demand of Fast Delivery Servicesstates that high Internet Penetration due to robust government initiatives coupled with decreasing prices of smartphones and data plans by telecom service providers has led to a drastic augment in the number of Online shoppers around India.

The E-commerce Logistics segment in India is in late growth stage and has developing as an organized market structure. The industry has flourished owing to fluctuating Consumer shopping preferences from physical stores to online market places from the coziness of their homes. The E-commerce Logistics Industry has augmented at a CAGR of 24.3% on the basis of revenue and a CAGR of 27.4% on the basis of number of shipments over the duration FY’2015-FY’2020. Foremost growth drivers of the Industry are greater internet penetration, augment in number of Smartphone users, growing propensity to purchase online, increasing demand from Tier 2 and below cities, new technological innovations, growing consumer expectations for fast delivery services and many more.

Competitive Landscape

The E-commerce Logistics Industry of India is quite concentrated with existence of 10-12 foremost players in the market. Top 2 players called E-Kart and ATS captures majority of the revenue share. Companies in this space battle against each other to attain and retain clients, enlarge the geographical presence, enlarge service offering and advance unit economics to augment the margins. Worth of Mouth and Reputation play an imperative role in expanding client base around this industry. Delivery Cost, Delivery Time, Network Coverage, Brand Value, Technology Stack, Success Rate are some of the challenging parameters each company aims upon to attain the customer trust.

Future Growth

The E-commerce Logistics Industry is predicted to flourish in India with growing demand from Tier 2 and below cities (due to greater internet penetration) and augmenting consumer expectations for fast delivery services. This industry is predicted to observe a CAGR of 23.6% in terms of revenue during the forecast duration FY’2020-FY’2025F. Continuing technological disruptions such as Monitored Robots, Drones, Inbuilt RFID, GPS, IoT, telematics and more which assistance in tracking Inventory and deliver products on time will attain the higher traction during future. Development of Fulfilment Centres in Tier 2 and below cities will augment to better serve the population in these locations.

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E-commerce retail logistics market in India

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