Redseer predicts that India’s e-commerce logistics market will surpass 10 billion parcels by FY28.
According to the most recent Redseer Strategy Consultants report, the Indian e-logistics market will continue to grow significantly in FY23. Total shipments (forward and reverse) for e-commerce logistics surpassed billion in FY23 (excluding hyperlocal shipments). In this pie, in-house logistics and third-party players were roughly equal.
Throughout the year, the industry witnessed intensifying competition from smaller incumbents, with yields also being challenged. Despite this, the market is an appealing long-term bet, with the overall e-com logistics opportunity expected to grow at a minimum CAGR of more than 20% by FY28, comfortably exceeding 10 billion parcels on the back of steady e-commerce growth.
Successful business models:
Despite increased competition, Delhivery remains the clear market leader in e-commerce 3PL parcels in FY23, according to Redseer data. Furthermore, its diverse set of D2C offerings, combined with a rapidly growing non-ecommerce business, makes it better insulated from recent macro trends in the eCommerce space and a more resilient logistics business overall.
“Despite funding headwinds in the eCommerce/Internet sectors, there are multiple pockets of high growth and high yield opportunities available for eLogistics players, whether in D2C or large goods or non-e commerce segments like C2C, PTL/FTL, and wider SCM services.” “Players who build robust capabilities and offerings to serve this demand effectively will fundamentally be more resilient in these challenging times and will be better positioned for long term market share and yield leadership,” Mrigank Gutgutia, Partner, Redseer Strategy Consultants, said in a statement.