Warehousing Market in India 2024-2029

The warehouse market comprises companies that operate warehousing and storage facilities for general merchandise, refrigerated goods, and other warehouse products. These companies do not sell products and goods; they are only involved in storing raw materials, finished goods, seasonal goods, and the efficient distribution of goods during adverse times.

The market's growth is attributed to the rapid expansion of e-commerce and organized retail, the implementation of Goods and Services Tax (GST), and increased domestic and international trade in India. During 2023 and 2024, the market witnessed investments from foreign companies, especially from the US and UAE.

Market drivers:

One of the most significant factors expected to drive the growth of the warehousing market is the increasing adoption of robots by various end-use industries to improve logistics and warehousing operations. Organizations are adopting robotic technologies to automate logistic processes, reducing manual labor resulting in lower operational costs, and providing operational ease in warehousing and logistic operations.

Market growth opportunities:

Growth in organized food delivery and e-commerce presents growth opportunities for warehousing in the cold chain sector in India.

The pharmaceutical sector is also a big demand driver for temperature-controlled storage and distribution. With increasing demand for temperature-sensitive products, including food, pharmaceuticals, and other perishable goods, there is a rising need for specialized cold storage facilities.

Market trends:

Sustainability in warehousing practices is a trend in the country that has witnessed traction in recent years. Market players are actively attempting to reduce their carbon footprint by including green energy practices to fulfill warehouse energy requirements, including solar panels or LED lights, incorporating electric vehicles (EVs) for transportation, and using recyclable packing materials such as cardboard instead of plastic packaging materials.

Key deterrents to the growth of the market:

The poor quality and inefficiency in the warehouse industry can be attributed to the lack of standardization in this sector. Three-fourths of players in this industry have no choice but to utilize sub-standard warehouse infrastructure. While some companies have gone ahead and developed their infrastructure, several seek smart warehouse providers to meet their standards, even if they must pay high rentals.