Logistic Automation Market in India 2023

The integration of hardware, software, and control systems in storage and warehousing facilities is known as"logistics automation" and it aims to improve operational efficiency in general. To keep up with developments and technological advancements, manufacturers plan to integrate logistics automation into their systems. The logistic automation market in the country witnessed growth in recent years, with states including Telangana, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, and Meghalaya conducting drone delivery of essential medicines during the Covid-19 pandemic lockdown.

Market insights:

The logistics automation market in India was valued at INR 77.77 Bn in 2022. Rise in the number of warehousing and logistics businesses across the nation and with significant investments in technology adoption, India's logistics sector is expected to improve its operational efficiencies. The market is also characterized by investments from foreign players such as Prologis, Alta Capital, and Anarock Capital to the logistics and warehouse sector in India. Free trade agreements and economic partnerships in international markets also characterize the market in the country.

Government initiatives:

The Karnataka government under the Industrial Strategy 2020-2025, has recognized logistics and warehousing as an independent industry. Following the strategy, the government has provided incentives and facilitation measures for the construction of infrastructure projects, such as logistics parks, multi-modal logistics parks (MMLP), dry ports, and cold storage facilities for truck terminals and warehouses, among others. The state has also incentivized the use of technologies in logistics such as online ticketing system (RFID), electronic delivery, integrated port operating system, and end-to-end digitization of the logistic sector. As part of its 'Freight Smart Cities' initiative, the government has also identified 8 smart cities with logistics committees.

Key market trends:

Increased online retail and the shift towards client-centricity has surged the demand for expeditious D2C deliveries in the country. The players involved in D2C deliveries are adopting automation to speed up their overall logistic value chain. The emerging need to monitor the supply chain and the transparency of logistical movement to maintain the delivery speed and achieve customer satisfaction has created an on-demand delivery model. The on-demand delivery model is also being embraced by the Third-party logistics (3PL) providers operating in India. This shift towards client-centricity is gaining traction and is pushing the adoption of technology in logistics to meet customer demands quickly.