India's express logistics industry to grow to $18-22 bn by FY30: KPMG

To sustain this momentum, stakeholders must focus on five pillars: agility, efficiency, customer centricity, sustainability and a robust regulatory framework, the consultancy said in an insights piece on its website.

The sector has emerged as a critical enabler of economic growth, digital commerce and employment generation.

Valued at approximately $9 billion in FY25, the sector has witnessed a robust compounded annual growth rate (CAGR) of 12-15 per cent since FY17, driven by the exponential rise in e-commerce, exports by micro, small and medium enterprises (MSMEs) and digital transformation.

The express logistics market in India spans a wide range of services including cargo handling, multi-modal transportation, warehousing, last-mile delivery and customs clearance, making it a vital component of the country’s supply chain ecosystem, KPMG noted.

The sector is a significant contributor to public revenue, with an estimated $1-1.5 billion in gods and services tax collections and $650 million in customs duties in FY24. It also supports 2.8-3 million jobs, both directly and indirectly, across urban and rural India.

The domestic express segment, accounting for nearly 70 per cent of the market, is valued at $6.3-6.5 billion, largely driven by the surface express mode.

The international express logistics market, comprising around 30 per cent of the total, is expanding rapidly due to the rise in cross-border e-commerce, MSME digitisation and manufacturing exports. With improved payment systems, customs reforms and trade facilitation policies, international shipments have become more reliable and scalable, KPMG noted.

The business-to-consumer (B2C) and consumer-to-consumer (C2C) segments now represent 55 per cent of the market, overtaking the traditionally dominant business-to-business (B2B) segment.

The rise of quick commerce, hyperlocal delivery and direct-to-consumer (D2C) brands has further accelerated demand for faster delivery timelines, prompting logistics providers to invest in technology, automation, and urban infrastructure, the insights piece added.

The express logistics segment contributes to nearly 60 per cent of India’s B2C logistics market, valued at $4-4.5 billion.

ALCHEMPro News Desk (DS)