The new industry analysis report segments the market based on services outsourced such as transportation, warehousing, freight and forwarding, and value-added services. The report sheds light on the challenges concerning vendors in this market. An insightful analysis of the leading vendors such as Aegis, Allcargo, Gati, DIESL, and TCI, is also included.
Technavio provides an in-depth analysis of the 3PL market, with the publication of its new report, 3PL Market in India 2015-2019, which is expected to grow at a CAGR of more than 8% during 2015-2019, thanks to increased outsourcing of transportation and warehousing services.
The demand for professional logistics has increased in India with growing retail marketplace and e-commerce. The India government is initiating various logistics infrastructure development plans such as new highway projects and FDI schemes in transportation to escalate growth in the logistics market. With the adoption of GST and increased use of VAS provided by contract logistics providers, there are mammoth opportunities for 3PL service providers with soaring demand for contract logistics services at hand.
Transportation occupies a lion’s share in the 3PL market in India in terms of revenue and is the most outsourced logistics function in the market. It accounts for almost 68% of the market share and is expected to reach over US $18 billion by 2019.
3PL Market in India by Transportation 2014-2019 ($ billions)
Source: Technavio Research
“The 3PL market is attaining huge interest for professional logistics services that offer high-end logistics and SCSs with value-added services such as assortment and grading of products, packaging, MIS services in the logistics supply chain, and legal formalities necessary in the process. Enterprises subcontract these logistics services to a 3PL service provider as the latter is more specialized in providing these services,” says Sriram Mohan, Lead Analyst, Logistics, Technavio Research.
Key vendors dominating the 3PL market include Aegis Logistics Ltd., Allcargo Logistics Ltd., Drive India Enterprise Solutions Ltd. (DIESL), Gati Ltd., Om Logistics Ltd. And Transport Corporation of India Ltd. (TCI). The market is extremely fragmented and apparently unorganized due to the presence of various regional vendors. Also, the market is on its way to consolidation with bigger companies acquiring smaller companies for geographical expansion.
https://www.technavio.com/%3Cp%3EA%20more%20detailed%20analysis%20is%20av…
