Product Code: ETC360144 | Publication Date: Aug 2022 | Updated Date: Feb 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 75 | No. of Figures: 35 | No. of Tables: 20 | |
The India warehousing and storage market size was estimated at INR 5,793.4 billion and is predicted to reach INR 9,229.3 billion with a CAGR of 8.9%. The e-commerce industry has been the primary driver for the growth of the warehouse and storage market in India as it increased its share from 7% to 44% over the past decade. This surge in demand for warehouses has led to increased investments from investors such as private equity firms, venture capitalists, etc., which have further propelled the market?s growth. Additionally, an increase in industrial activities throughout various sectors of India has also contributed significantly towards this trend. Furthermore, government initiatives such as Make In India Campaign will create more opportunities for investment within this sector; leading to further expansion across rural areas driving up demand even higher.
The India warehousing and storage market is experiencing robust growth, driven by several key factors. One of the primary drivers is the growth of the e-commerce sector. The increasing popularity of online shopping and the rising number of e-commerce platforms have created a substantial demand for warehousing and storage facilities to accommodate the inventory of goods. The expansion of logistics and distribution networks has also contributed to the need for warehousing infrastructure across different regions in India. Additionally, the growth of the manufacturing sector and the need for efficient supply chain management have further fueled the demand for warehousing and storage services. The implementation of Goods and Services Tax (GST) and the development of organized retail have led to the consolidation of warehousing operations, promoting the growth of modern and technologically advanced warehouses in the country. Moreover, government initiatives like "Make in India" and "Atmanirbhar Bharat" have further encouraged investments in the warehousing and storage sector, supporting its expansion.
The India warehousing and storage market faces several challenges that impact its growth and efficiency. One of the key challenges is the lack of modern and technologically advanced warehouses in many regions. The majority of warehousing facilities in India are traditional and lack proper infrastructure for efficient storage and inventory management. Inadequate transportation and logistics infrastructure can also pose challenges in connecting warehouses to major transportation hubs, leading to inefficiencies in the supply chain. The fragmented nature of the warehousing industry, with numerous small and medium-sized players, can hinder the adoption of standardized and best practices in warehousing and storage. Additionally, the lack of skilled labor and trained personnel in warehouse operations can impact productivity and quality of services. Overcoming these challenges requires investments in modernizing warehousing facilities, improving transportation networks, promoting industry consolidation, and providing training and skill development opportunities for warehouse personnel.
The India warehousing and storage market faced disruptions during the COVID-19 pandemic due to supply chain disruptions and restrictions on movement. The closure of factories and businesses impacted the demand for warehousing services, particularly in sectors such as retail and manufacturing. The challenges in sourcing labor and implementing safety measures also affected warehousing operations. The restrictions on logistics and transportation impacted the flow of goods, leading to delays in deliveries and order fulfillment. However, the e-commerce sector witnessed significant growth during the pandemic, driving the demand for warehousing and storage solutions to accommodate the surge in online orders. The adoption of technology and automation in warehousing operations helped in overcoming some of the challenges and ensuring efficient inventory management. The warehousing and storage market is expected to witness sustained growth in the post-pandemic period, driven by the growth of e-commerce and the emphasis on efficient supply chain management.
The India warehousing and storage market are witnessing participation from several key players offering comprehensive storage solutions. Companies like Mahindra Logistics Limited, DHL Supply Chain India Private Limited, and Gati-KWE Limited are prominent players in the organized warehousing and logistics space. These companies provide end-to-end warehousing solutions, including fulfillment centers, temperature-controlled storage, and value-added services. Domestic players like Container Corporation of India Limited (CONCOR) and VRL Logistics Limited also play a crucial role in providing warehousing and container storage services across the country. These key players are investing in modern warehousing facilities, adopting technology-driven inventory management systems, and expanding their network to cater to the growing demand for warehousing services in India rapidly developing logistics and e-commerce sectors.