The organized sector of the India Express Logistics Market is expected to constitute a CAGR of 14.59% in the coming five years: Bonafide Research

Regulation GST, "Make in India" initiative, Push on transport infrastructure, and burgeoning e-commerce market will prompt the Logistics Service Sector in general and Express Industry ahead in the coming years.

India Express Logistics Market Outlook, 2021India Express Logistics Market Outlook, 2021

Vadodara, Gujarat, November 2, 2016 /India PRwire/ -- According to recently published report of Bonafide Research "India Express Logistics Market Outlook, 2021" the organized sector is holding major share of the Indian express market. The major players involved in the same consist of BlueDart, Gati, Safexpress, TCI, Indian Railways, and Indian Post etc. The unorganized players are the local regional players who deliver the parcels and at a very low cost who also acquire a large share of the market. The express industry stood at USD 3.39 Billion in 2015. The organized express market had recorded a CAGR of 17.50% till 2015. The organized segment is expected to exhibit a faster growth in terms of value than the unorganized in the total express market.

Growth in the logistics industry depends on infrastructure availability and involvement of private players and increased government spending which will catalyze the growth in the industry. Currently, more than half of express shipments are delivered through road network. With push on Logistics infrastructure and specifically on road connectivity the efficiency is expected to improve in future. The overall speed of travel still remains low at 35-40 kilometers per hour for India compared to global average of 60-80 kilometers per hour. Companies in India currently outsource an estimated 52% of logistics, and 3PL represents only 1% of logistics cost. As of now, the 3PL activity is limited to only few industries like automotive, IT, telecom and infrastructure equipment. E-commerce giants will slowly enter the hyperlocal or express delivery segment, in the critical battle to reach customers faster competing with on-demand startups that promise to deliver products within an hour, typically by tying up with local stores.

Outsourcing will obviously make (deliveries) cheaper. It is also to the advantage of logistics companies, who can cooperate with such clients and, therefore, be more efficient in their utilization of resources. Implementation of Goods and Service Tax (GST) is expected to streamline the processes and reduce a lot of these delays. With GST, multiple tax regimes with different rules and rates across states will merge into a single tax structure. This will reduce the need for check posts and improve efficiency of operations for the Express service providers by reducing delays and paper-works. Express Industry is nimble in terms of growth in market size along with concomitant improvement in policies and infrastructure. The industry can be classified broadly based on the mode of transport it uses, surface having predominance. Auto, engineering and hi tech industries have been the market drivers so far. However, it is expected that the blooming e-commerce market and relating 3PL and hyper local space will prompt the Express market in coming years.

Notes to Editor

Bonafide is a multi-disciplinary research and consulting company which provides all the information streams required to solve strategic, business and marketing problems. We closely work with fortune 500 clients providing them in-depth understanding of the markets. The forte of Bonafide Research lies in its ability to create reports on Asian markets that capture the essence of a specific industry. Bonafide is a "one-stop-shop" offering syndicated research reports, custom research solutions and marketing services for a variety of industry verticals. These solutions and services includes market sizing studies, drivers, challenges, future trends, market entry / expansion strategies, pricing analysis, customer satisfaction studies, competitive and business intelligence, channel partner research, market opportunity assessment, brand assessment and buyer behavior studies and many more. We bring first-hand information and prudent analysis of various industries, technologies, economic and non-economic market parameters, potential markets, and key competitors in the industry and give rational forecast for market trends to help clients identify prospective growth areas and gain competitive edge. Our analytical reports are clear, concise, timely, comprehensive and highly insightful analysis to help our clients with perfect answers to their important business queries and helps them making well-informed tactical strategic moves in the dynamic global market environment.We focus on delivering high quality research services to business professionals, organizations and individuals, thus supporting in maximizing success from the current industry information.


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