Road logistics market in India is expected to show CAGR of 7-8 % by 2025
According to ‘Inter-city Logistics Market Study’, released by consulting firm RedSeer‘s early-stage research arm, RedCore, the road logistics market in India is expected to grow at a compounded annual growth rate (CAGR) of 8 percent in the next five years, to reach USD 330 billion by 2025, as per a report.
RedSeer, the Bengaluru-based market research firm noted that “Given the massive economic opportunity, a slew of start-ups are disrupting this sector with innovative business models that solve most of the industry pain-points from the supply side.”
This growth will be fueled by factors such as the rapidly growing e-commerce sector, growing retail sales market, rising income levels, and higher exports. The Indian road logistics market is expected to reach $330 billion by 2025, a new report showed on Monday.
India handles 4 billion tonnes of goods each year and trucks and other vehicles handle most of the movement of these goods.
Railways, coastal and inland waterways, pipelines, and airways account for the rest.
Intercity logistics is the movement of goods for more than 200 km (one side), with a round trip greater than 24 hours.
Nearly 33 percent of intercity logistics spend is on intermediate and finished goods transport.
The findings showed that the on-demand market accounts for 63 percent of the total long-haul logistics market. On-demand freight transport is the movement of goods on an immediate basis with prompt payment.
The report further said, “It helps in satisfying unfulfilled and urgent demands. Shipments are tendered one at a time on a load-by-load basis and price is high in comparison to the price offered by contract market.”
According to the report, the time is ripe for the open marketplace to succeed as factors such as heavy investments in road and transport infrastructure, rapid technology adoption among suppliers, India’s digital push, macro drivers for fleet owners, and India’s massive on-demand/ spot market will drive its growth in the near future.
Additionally, multiple government policies have come up in recent years that have supported the disruption in the logistics space such as the Logistic Efficient Enhancement Program (LEEP), Digital India, and Make in India, among others, as per the study.
[With Inputs from IANS]
PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views
For all the latest updates, download PGurus App.
- Amid global meltdown, OLX Group to slash over 1,500 jobs globally - January 31, 2023
- Assam: Bihu festival to get international exposure, strives to enter Guinness World Records - January 31, 2023
- India to achieve Leprosy Mukt Bharat goal by 2027, says Mansukh Mandaviya - January 31, 2023