India's e-logistics sector has become one of the largest and fastest growing logistics markets globally and is all set to reach the $9 billion industry, with a compound annual growth rate of 35 per cent, a report showed on Monday.
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," says the report by Bengaluru-based Redseer Strategy Consultants.
Among such players, Delhivery 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.
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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.
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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 mentioned.
