Specialised logistics needs drive demand for 3PL

The Third-Party Logistics (3PL) sector in India is set to grow phenomenally along with its key growth drivers including E-commerce, digitization, and infrastructure modernization. According to the recent report unveiled by Technavio, a leading global technology research and advisory company, the Indian 3PL market is set to grow by $10.74 billion at a CAGR of 8 per cent during 2021-2025. Mordor Intelligence, another study puts the growth of Indian 3PL at 11 per cent during the same forecast period.
The global 3PL market accounted for $1027.71 billion in 2019, and is expected to reach $1,789.94 billion by 2027 registering a CAGR of 7.1 per cent from 2020 to 2027. It is noteworthy that the Asia-Pacific (APAC) region claimed majority share in the global 3PL market in 2019. While, the Indian 3PL market remains to display its promise with the introduction of recent tax reforms, and the behavioural shifts in consumer patterns such as preference for online shopping, and other industry and government advantages to build capacity and infrastructure.