India’s e-commerce logistics market seen growing at 16% CAGR by FY30

India’s e-commerce logistics market is set to expand rapidly, outpacing the overall industry with a compound annual growth rate (CAGR) of 16% by FY30, according to a report by JP Morgan. The growth will be driven by rising customer penetration in tier-2 and smaller cities, along with tech-driven efficiencies. 

India’s business-to-consumer (B2C) e-commerce logistics segment is performing better than the broader logistics industry. However, the overall industry has not invested enough to keep pace with the rising demand. While India’s logistics market has low entry barriers, it faces high scale barriers, which make it difficult for many players to achieve sustainable, large-scale operations. The report also cautioned that several e-commerce logistics players are still not profitable. The report highlighted that demand from tier-2 and beyond cities is a key growth driver, as per a report.

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