India Warehousing Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

The India warehousing market was valued at USD 60.42 Billion in 2024. The industry is expected to grow at a CAGR of 10.50% during the forecast period of 2025-2034. Increasing overall economic activity across the nation, and expansion of manufacturing as well as e-commerce sector is augmenting the demand for warehousing in India. This in turn is expected to push the market ahead to attain USD 163.98 Billion by 2034.

India Warehousing Market Report Summary

Market Size 2024

• USD Billion 60.42

Market Size 2034

• USD Billion 163.98
• CAGR 2025-2034
• 10.50%

CAGR 2025-2034 - Market by Region

• South India
• 12.0%

CAGR 2025-2034 - Market by Region

• East India
• 11.2%

CAGR 2025-2034 - Market by Type of Warehouse

Refrigerated Warehousing and Storage

• 11.4%

CAGR 2025-2034 - Market by Ownership

• Private Warehouses
• 11.7%

2024 Market Share by Region

• East India
• 17.4%

India Warehousing Market Overview

India's warehousing and logistics sector is augmenting owing to the e-commerce boom, manufacturing expansion, and consumption growth, thus pushing the India warehousing market expansion. Automation is being adopted by the key players to enhance productivity, lower labour expenses, and enhance inventory management. The industry is witnessing robust demand, with demand lagging behind supply 1.4 times in 2023. Grade-A warehousing inventory reached 177 Mn sq.ft by Q3 2023, with a further 140 Mn sq.ft increment since 2016, reflecting the sector's resilience and expansion. Despite the growth, the market continues to face challenges such as complicated supply chains, inefficiencies, and increasing costs.

India Warehousing Market Growth

India's warehousing industry is booming, mainly due to the fast-paced development of e-commerce and the growth of manufacturing capabilities in various states. The rise of online shopping has created more demand for fulfillment centers, especially in Tier II and Tier III cities, to support faster deliveries, thus pushing the India warehousing market development. At the same time, the growth of the manufacturing industry, aided by schemes such as the Production-Linked Incentive (PLI) scheme and 'Make in India,' has further boosted the demand for warehousing space, particularly in strategic industrial cities like Chennai, Bengaluru, and Ahmedabad, driving the market's growth and development.

Key Trends and Recent Developments

The market is bolstered by the trends towards Tier II-III expansion, technological adoption, Grade A infrastructure, and rising foreign investments, thus shaping the India warehousing market dynamics and trends.

May 2025

India's Department of Food and Public Distribution will introduce an IoT and AI-powered warehousing platform to track more than 2,000 food depots with a view to enhancing quality, safety, and transparency in food grain storage through digitized monitoring and performance evaluation systems.

December 2024

Zepto and NX Logistics India opened a high-end 180,000 sq. ft. warehousing facility in Bengaluru's Sumadhura Logistics Park. This cutting-edge facility, under a strategic alliance with Sumadhura Group, is aimed at optimizing Zepto's supply chain and fueling its rapid growth.

May 2024

DP World has commissioned a high-tech Grade A warehouse in Goa's Loutulim, covering an area of 27,512 sq. ft. Strategically placed close to Mormugaon Port, Dabolim Airport, and Panjim city, the facility has hassle-free access to key transport corridors, including the Goa-Bangalore-Pune highway.

December 2023

US-based Panattoni, a global leader in industrial and logistics real estate development, announced its entry into the Indian market with a INR 110 crore investment to develop a 3.6 lakh sq. ft. warehouse park in Delhi-NCR. Construction is set to begin in early 2024, with completion expected within a year.

Foreign Investment Inflow

Global players such as Panattoni are entering the Indian warehousing ecosystem, fueled by robust growth opportunities. Several private investments are being made in this sector, with billions being invested in developing modern logistics parks in metros and emerging industrial belts, thereby bolstering the India warehousing market growth.

Integration of technology

?Warehousing is getting smarter with the integration of technology such as AI, IoT, and automation. Digital technologies now minimize inventory, monitor goods in real-time, and maximize transparency. This aids in aligning with the government initiatives that are digitizing food storage depots and private investments in smart warehouses.

Grade A Infrastructure Growth

Developers are targeting Grade A spaces with increased safety, efficiency, and sustainability. Such spaces have demand from sectors such as pharmaceutical, FMCG, and 3PL, with global standards compliant, and temperature-controlled and high-value inventory management support, thus boosting the India warehousing demand.

Tier II & III City Expansion

Demand for warehouses is gaining significance in Tier II and Tier III cities with increasing e-commerce and retail requirements. Cities like Lucknow and Coimbatore are witnessing increased absorption, facilitating decentralized distribution and minimizing logistics turnaround time.

India Warehousing Market Trends

Dark warehousing, completely automated, humanless storage units, is driving growth by enabling 24/7 operations, minimizing errors, and saving on labour costs. For instance, e-commerce firms such as Flipkart utilize automated storage and retrieval systems to enhance order processing. Drones improve inventory management and last-mile delivery efficiency, thereby shaping new trends in the India warehousing market. Startups such as Skye Air in India are experimenting with drone deliveries to remote locations, ensuring quicker and cheaper logistics. These technologies enhance precision, cut down turnaround time, and expand operations effectively, making India's logistics industry more agile to increasing e-commerce and manufacturing needs.

India Warehousing Market Opportunities

Sustainability in warehousing and logistics is a significant opportunity for Indian businesses to save costs, increase brand equity, and acquire ESG-driven investors. Using energy-efficient warehouses, EVs, and environmentally friendly packaging materials, companies can achieve regulatory requirements and customer expectations for green practices, thereby boosting the opportunities in the India warehousing market. Adopting alternative fuels and green technologies also provides operational efficiency and long-term cost savings.

India Warehousing Market Restraints

Bottlenecks in infrastructure, such as poor road conditions and bottlenecks at ports and airports, obstruct efficient functioning, thus leading to challenges in the India warehousing market. The industry is also affected by a lack of trained personnel, particularly for supervisory and maintenance work in high-technology warehouses. Bureaucratic compliance procedures such as safety requirements and taxation rules increase operating problems. Further, land acquisition processes tend to be lengthy and complicated, thereby inhibiting new warehousing complex construction.

India Warehousing Industry Segmentation

The report titled “India Warehousing Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type of Warehouse

• General Warehousing and Storage
• Refrigerated Warehousing and Storage
• Farm Product Warehousing and Storage

Market Breakup by Ownership

• Private Warehouses
• Public Warehouses
• Bonded Warehouses

Market Breakup by End Use

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverage
• IT Hardware
• Healthcare
• Chemicals

Market Breakup by Region

• North India
• South India
• East India
• West India

India Warehousing Market Share

Market Analysis by Type of Warehouse

General warehousing is witnessing huge significance owing to consumption patterns, industrial expansion, and e-commerce growth. Refrigerated warehousing is also growing with greater demand for cold chains in dairy, pharma, and food industries. As per India warehousing market analysis, farm product warehousing is increasing through agri-tech programs and government-sponsored storage initiatives, contributing to post-harvest loss reduction. The demand for sector-specific storage solutions is driving investment in all three categories with a big thrust from private players, agri-reforms, and supply chain upgradation.

Market Analysis by Ownership

Private warehouses dominate the Indian market due to the requirement of operational efficiency, real-time traceability, and integration with automation systems. Corporate giants are looking to invest heavily in private warehouses for control and scalability. As per India warehousing industry analysis, public warehouses are reserved for small-sized businesses and are vital in their role of aiding regional trade. Bonded warehouses play a fundamental role in foreign trade, making duty-free storage and customs clearance possible. Support for logistics parks and free trade zones by the government is also stimulating multiple ownership models in urban and semi-urban India.

Market Analysis by End Use

Manufacturing dominates the market with higher industrial production and export-import operations. Retail and consumer goods, fueled by e-commerce, need high-speed fulfillment, thus boosting the India warehousing market revenues. Food and beverages need cold storage and high standards of hygiene, while healthcare storage is growing with pharmaceutical and medical equipment requirements. The hardware IT sector needs safe, dust-free conditions, and chemical storage needs adherence to hazardous materials standards. Every segment's development is driving advanced, specialized warehousing facilities with automation and sustainability at the center.

India Warehousing Market Regional Analysis

CAGR 2025-2034 - Market by

• Region
• South India
• 12.0%
• East India
• 11.2%
• West India
• North India

North India Warehousing Market

North India plays an important role in the India warehousing market owing to its benefitting geographical location. Cities like Delhi NCR's warehousing demand is surging due to its strategic location, robust infrastructure, and policy reforms like GST that streamline multi-state logistics. The region's proximity to major highways, rail networks, and ports enhances its appeal for both domestic and international trade. The e-commerce boom necessitates advanced warehousing solutions for rapid deliveries, leading to the adoption of technologies like automated sorting and inventory management systems. Additionally, the presence of specialized 3PL providers supports diverse industries, ensuring efficient supply chain operations and positioning Delhi NCR as a pivotal logistics hub in North India.

South India Warehousing Market

The South India warehousing industry is witnessing strong growth, with Chennai, Bengaluru, and Hyderabad at the forefront. In Chennai, warehousing transaction volumes increased by 44% year-on-year in FY 2022 to 5.1 million square feet, led mainly by the manufacturing industry, which took up 38% of the demand, followed by third-party logistics (3PL) providers at 35%. The region’s strategic positioning, close proximity to ports, and well-established industrial presence, especially in the automobile and heavy industries, are among the prime factors driving this demand. Furthermore, the growth of e-commerce and the growing requirement for efficient supply chain solutions are also fuelling the warehousing market in South India.

East India Warehousing Market

The East India warehousing industry is seeing tremendous growth, as seen in the case of TVS ILP's INR 125 crore investment in a 24-acre facility in Cuttack, Odisha. The strategic location, at the crossing point of major highways and proximity to Paradip port, increases connectivity for industries such as FMCG, FMCD, 3PL, and e-commerce. The project will create more than 110 direct and up to 1,000 indirect employment opportunities, demonstrating the increasing demand of the region for modern logistics infrastructure and its logistic hub potential.

West India Warehousing Market

The West India warehousing industry, especially in Gujarat, is augmenting owing to its strategic location, strong infrastructure, and government support. Ahmedabad has become one of the important warehousing hubs, leveraging its proximity to prominent ports such as Mundra and Kandla, and well-developed road and rail connectivity. Ahmedabad's warehousing market is supported by varied industries such as pharmaceuticals, chemicals, and textiles, which need specialized storage. Also, the Dedicated Freight Corridor boosts connectivity, making Gujarat a desirable place for warehousing and logistics investments.

Competitive Landscape

Key India warehousing market players are planning to increase capacity, drive operational efficiencies, and implement smart technologies. Key areas are the development of Grade A warehouses, foraying into Tier II and Tier III cities, and incorporating automation and digital solutions in managing inventories. Global players are making significant investments, focusing on strategic geographies and segments such as e-commerce, 3PL, and pharma. The objective is to automate logistics, drive cost savings, and address increasing demand with future-proofed infrastructure.

Mahindra Logistics Ltd

Founded in 2007 and headquartered in Mumbai, Mahindra Logistics provides pan-India integrated warehousing and distribution services. It provides multi-client warehouses, in-factory logistics, and automation-based storage systems to various industries such as automotive, FMCG, pharmaceuticals, and e-commerce with pan-India reach.

Shiprocket

Established in 2017 and headquartered in New Delhi, Shiprocket offers technology-enabled warehousing and fulfillment services for e-commerce and D2C brands. Its platform consists of intelligent warehouses with inventory syncing, real-time tracking, and return management, enabling SMEs to handle scalable logistics efficiently throughout India.

Delhivery Limited

Founded in 2011 and based in Gurugram, Delhivery provides end-to-end warehousing solutions such as on-demand warehousing, order management, and real-time inventory transparency. Its pan-India infrastructure benefits e-commerce, retail, and industrial customers with tech-enabled, scalable storage and fulfillment options.

Allcargo Gati Limited

Founded in 1989 and based in Hyderabad, Allcargo Gati offers contract logistics and warehousing solutions throughout India. It has multi-user facilities and automated distribution centers serving various industries such as retail, automotive, and healthcare with an emphasis on speed and reliability.

Other key players in the India warehousing market report are Deutsche Post AG (DHL), FM LOGISTIC CORPORATE, Apollo Warehousing Limited, AAJ Supply Chain Management Private Limited, Warehouse Now, and AWL India Private Limited, among others.