Internet of Things Is Revamping the Warehousing Market in India
According to a new report released by the Research on Global Markets, Technological advancements such as the Internet of things (IoT), cloud computing, big data analytics, robotics and automation, advanced imagers, and mobile thermal printers are revamping the warehousing market in India. A warehouse stores products from multiple sourcing locations acts as a sorting center for customer deliveries provides cross-docking facilities to retail distributors and an assembly facility for final packaging and bundling of products.
Modern warehouses provide value added services such as consolidation, breaking up of cargo, labeling, packaging, barcoding and storage facilities. The different kinds of warehouses are fulfillment centers, distribution centers, return centers, and showrooms. The Indian warehousing market is categorized into three types that is lower stratum, middle stratum and higher stratum based on the type of infrastructure.
Several government initiatives such as the ‘Make in India’ program and the implementation of the goods and services tax (GST) along with efforts to set up industrial corridors have attracted significant international players. Removal of interstate checkpoints, reduction in cargo movement time and replacement of multiple state and central level taxes are facilitating the consolidation of warehouses.
The key growth factors:
- Growth in 3PLs, Indian e-commerce, and FMCG, retail, auto, and auto ancillaries, pharmaceutical and chemical industries is anticipated to drive the demand for organized players in the Indian warehousing market.
- Based on trends, there has been a sharp rise in automobiles sales in the country. Increasing international trade is strengthening the growth of the warehousing market in India.
- Lack of warehousing accreditation and standards poses a major threat to the Indian warehousing market due to the unavailability of flexible and quality warehousing spaces.
- Players in the Indian warehousing market face a major challenge due to the conversion of agricultural land for industrial and commercial purposes. The warehousing industry in India is still at a nascent phase and is highly fragmented when compared to the United States (US) and European countries.
Warehousing clusters in major Indian cities:
Bolstering infrastructure initiatives such as industrial corridors, and dedicated freight corridors, among others, are expected to augment the demand in the Northern Capital Region (NCR), Mumbai Metropolitan Region (MMR), Hyderabad, Bengaluru, and Kolkata. Container Corporation of India Ltd., Gati Ltd., and Mahindra Logistics Ltd. are some of the major players that are operating in the Indian warehousing market.
The key highlights of the report:
- Overview of the Indian warehousing market
- Historical, current and forecasted market size data for the Indian warehousing market (FY 2016 to FY 2023) – by value
- Historical, current and forecasted market size data for the Indian warehousing market (2016 to 2023) – by warehousing space requirement
- Warehousing strategy before and after the implementation of GST
- Qualitative analysis of the Indian warehousing market and warehousing clusters across major Indian cities
- Investment scenario in the warehousing market in India
- Qualitative analysis of the major drivers and challenges affecting the market
- Analysis of the competitive landscape and profiles of major players operating in the market
- Key recent developments associated with the warehousing market in India
Check out the Research on Global Markets report featured in this article: