Following the footsteps of markets like China and the US where penetration of the last mile has reached more than 10%, India’s Last-mile Delivery market is all set to touch a market size of $6-7 billion by 2024, said a new report by RedSeer.
As per the Bengaluru-based market research firm RedSeer, the Indian last-mile delivery segment constitutes FMCG, e-commerce, retail, and other categories. Out of which the FMCG segment constitutes the highest followed by e-commerce.
“In the e-commerce sector, logistics is divided between captive and third-party logistics (3PL). The overall e-commerce shipments have grown from 817 million shipments in 2018 to 1,364 million shipments last year, and is expected to grow over 5,000 million by 2025,” said Kanishka Mohan, a Director with RedSeer.
The overall road logistics constitutes nearly 8 percent of the nations’ GDP, across the value creation cycle The road logistics contributes the highest in the overall logistics market.
“Road logistics is a market size of $240 billion with 75 percent share of the overall market size,” Mohan said in a statement.
The Road Logistics Market is divided between Intracity and intercity logistics.
The Last mile Delivery segment which comes under the Intra-city logistics, is the movement of goods within 200 km (one side), with a round trip of fewer than 24 hours, and a load of fewer than 5 tonnes.
Speaking on the same, the report suggests that It currently represents about 18 percent of the overall logistics. It further highlighted the dominant players in the intra-city segment and said that the market is dominated by players like Porter, LetsTransport, Blowhorn, and Lynk.
The logistics industry has remained a backbone for many industries and over the years has enhanced its technology-based offerings to suit various sectors and their needs.
Today, the larger market is divided based on roads, warehousing, and other transport, the report added.