During the COVID-19 pandemic, the e-commerce ecosystem has witnessed a significant shift, with e-commerce players witnessing a steep rise in order volumes. To cater this growing online consumer demand, e-commerce players are looking to strengthen their supply chain and logistics capabilities.
The warehousing market is driven by the country’s flourishing manufacturing, retail, FMCG and logistics sectors. Furthermore, supportive government policies such as establishment of logistic parks and free trade warehouse zones is expected to spur the market growth through 2025. Also, introduction of GST has led to reduction in inventory and turnaround time, which has led to the removal of check points thereby diminishing state boundaries.
Market Segmentation
Investment Drivers
COIVD-19 has fast tracked the global supply chain rebalancing which was triggered by the US-China trade war. Globally, manufacturing companies are actively evaluating a China+1 supply chain strategy, wherein they establish an incremental supply base outside China.
The entry of global manufacturing multinationals into India should provide a boost to the country’s exports along with generating increased demand for warehousing facilities.
Besides, technological advancements such as the advent of AI, IoT, 3D Printing, among others, in the warehousing industry is further expected to create lucrative opportunities over the next few years. Moreover, the emergence of third party logistics and supergrid logistics is further expected to fuel the market growth during the forecast period.
Sector Readiness
Insulated from credit risk when compared to the other real estate asset classes, a fully implemented GST and the government impetus on truck infrastructure has primed the warehousing sector to respond and capitalise on the demand upswing.
Most warehousing state policies are matured, making warehousing a viable and lucrative industry, ready for imminent scale
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