Synopsis
India's express parcel sector is projected to add 24-29 billion shipments to logistics by FY2030, driven by e-commerce growth and quick commerce. The market will reach 10-11 billion shipments in FY25, with a shift from traditional couriers to e-commerce and hyperlocal deliveries.Key Takeaways
- 24-29 billion shipments expected by FY2030.
- CAGR projected at 19-23% from FY2024.
- Current FY25 estimate of 10-11 billion shipments.
- Significant growth in e-commerce and quick commerce.
- Traditional couriers forecasted to grow at 7% CAGR.
Bengaluru, March 28 (NationPress) India’s express parcel market is poised for remarkable expansion, with an anticipated addition of 24-29 billion shipments to the logistics sector by FY2030, according to a report released on Friday.
This growth is projected to reflect a compound annual growth rate (CAGR) of 19-23 percent from the FY2024 volume of 8-9 billion shipments.
In the current fiscal year (FY25), the market is estimated to achieve 10-11 billion shipments, driven primarily by the burgeoning e-commerce sector, particularly in non-horizontals, alongside the emergence of hyperlocal/quick commerce, as noted in the report by Redseer Strategy Consultants.
The e-commerce segment (excluding hyperlocal) constituted over 50 percent of the express parcel market in FY2025, accounting for roughly 4.8-5.5 billion shipments. This figure is projected to increase to 15-16 billion shipments by FY2030, potentially representing 55-60 percent of the express parcel market at that time.
The report highlights a shift in India’s express parcel market from conventional couriers to e-commerce and hyperlocal shipments, driven by digital adoption, demographic transformations, and urbanization.
“Consumers increasingly demand quicker, more convenient delivery options, which is accelerating the growth of e-commerce and hyperlocal shipments, while traditional parcel services are expanding at a much slower pace,” stated Mrigank Gutgutia, Partner at Redseer Strategy Consultants.
With express parcel volumes expected to rise significantly between FY20-30 due to the e-commerce boom, players in express logistics must adjust their strategies to capitalize on the rapidly evolving landscape of e-commerce and hyperlocal opportunities, he added.
Quick commerce has emerged as the fastest-growing segment, accounting for 7-10 percent of the overall express parcel market in FY2024 and FY2025. It is anticipated to expand at a 33-50 percent CAGR from FY2024 to FY2030, according to the report.
Deliveries related to online food ordering, pharmacy services, and hyperlocal C2C shipments are projected to represent 13 percent of total shipment volume by FY2030, although they will grow at a slower pace compared to quick commerce, the report indicated.
The traditional couriers segment made up 17 percent of the express parcel market in FY2025 (equating to 2 billion parcels) and is forecasted to grow at a 7 percent CAGR until FY2030.
