Future of logistics: warehousing market - India

The Indian warehousing sector is on the brink of a remarkable transformation. As supply chains evolve, the demand for warehouse space is projected to reach approximately 1.2 billion sq. ft by 2027 across Grade A, B & C warehouses across all Indian cities. This growth is not just about quantity, but quality as well. The report highlights a significant shift towards Grade A warehousing, with stock expected to grow to an impressive 400 million sq. ft by 2027 from 290 million sq. ft in 2023.

The rise of urban fulfilment centers is another key trend identified in the report. By 2027, the combined space requirement for these centers is estimated to exceed 35 million sq. ft across India, highlighting the growing need for efficient last-mile delivery solutions in urban areas.

The report also sheds light on India's position in the global warehouse automation market. By 2026, India is projected to be among the top 6 users of warehouse automation systems worldwide, with the market expected to reach USD 2 billion annually. This trend towards automation reflects the sector's drive for increased efficiency and competitiveness on the global stage. Government initiatives are playing a crucial role in shaping this transformation. The National Logistics Policy, which aims to reduce logistics costs to 10% of GDP, is creating a more favourable environment for organized and standardized warehouse developments. This policy is expected to streamline operations and attract further investments into the sector.

As the industry evolves, sustainability is becoming an increasingly important factor. Many leading developers are now following ESG norms in their projects, indicating a rise in ESG-certified warehousing projects across India. This shift towards sustainable practices is likely to reshape the sector's future trajectory.

Download the report for a more in-depth understanding of the factors shaping the future of India’s Logistics and Warehousing sector.