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E-commerce is one of the fastest growing demand segments in warehousing

June 2019
India looks at e-commerce as one of the fastest growing demand segments in the warehousing space. “When it comes to space requirement, currently, in-house (captive) logistics arms of large e-commerce players or retailers execute the most shipments, followed by ecommerce focused logistics service provides (LSPs) and traditional LSPs,” says Chandranath Dey, Senior Director and Head - Industrial Consulting and Supply Chain Consulting, JLL India.

According to JLL India Industrial Research, over 20 per cent of warehouse absorption had direct and indirect ecommerce involvements in 2018. And as the Indian ecommerce market is expected to grow to $200 billion by 2026 from $38.5 billion in 2017 (IBEF report), space demand in this sector is likely to stay strong.

Logistics is a major driver of the ecommerce retail industry. The e-commerce retail logistics market in India is estimated at $1.35 billion in 2018 and expected to grow at a 36 per cent CAGR over the next five years (IBEF March 2019 report).