Key Growth Drivers

The logistics sector in India experienced significant growth in 2024, propelled by third-party logistics (3PL) providers and the engineering and manufacturing (E&M) sector. This expansion reflects the increasing need for efficient supply chain management and robust warehousing solutions across various industries.

Market Share and Sectoral Contributions

Sector	Share of Warehousing Demand	Key Growth Factors
Third-Party Logistics (3PL)	41%	Increased reliance on external logistics providers
Engineering & Manufacturing (E&M)	18%	Expansion of distribution networks and increased production
Fast-Moving Consumer Goods (FMCG)	9%	Growth in quick-commerce and urban market penetration
E-commerce	9%	Rise in online shopping and last-mile logistics

Regional Investment Highlights

Region	Share of Warehousing Demand	Key Drivers
Maharashtra	42%	Industrial ecosystem, strategic location
Tamil Nadu	19%	Strong manufacturing clusters
Delhi-NCR	19%	Logistics infrastructure and market demand

Emerging Trends in Warehousing Demand

1. 3PL Market Expansion: The dominance of 3PL providers continues to grow, showcasing their crucial role in navigating supply chain complexities.
2. E&M Sector Growth: Increased production and optimized distribution networks drive demand for warehouse space in the engineering and manufacturing sector.
3. Rise of FMCG Warehousing: The demand for micro-fulfillment centers is increasing due to rapid urbanization and changing consumer preferences.
4. E-commerce Strengthening: Companies are expanding their warehouse capacities to meet the growing demand for last-mile delivery services.
5. Technology Integration: Automation, artificial intelligence, and smart warehousing are becoming essential to enhance operational efficiency and scalability.
6. Regional Market Development: Emerging hubs like Telangana are gaining traction as alternative logistics centers to avoid saturation in major markets.

Conclusion

The logistics and warehousing sector in India is undergoing a dynamic transformation driven by market demand, technological advancements, and regional developments. Businesses must adapt to these evolving trends by investing in strategic warehouse solutions, technology adoption, and efficient supply chain models to remain competitive in this rapidly changing landscape.