December 8, 2021
1 min read

India’s road logistics market targets $330bn by 2025

Intercity logistics is the movement of goods for more than 200 kms (one side), with a round trip greater than 24 hours…reports Asian Lite News.

With rising income levels, higher exports, growing e-commerce and retail sectors, the Indian road logistics market is expected to reach $330 billion by 2025, a new report showed on Monday.

India handles 4 billion tonnes of goods each year and trucks and other vehicles handle most of the movement of these goods.

Railways, coastal and inland waterways, pipelines, and airways account for the rest.

According to Bengaluru-based market research firm RedSeer, the road logistics market is expected to grow with a compound annual growth rate (CAGR) of 7-8 per cent in the next five years.

“Given the massive economic opportunity, a slew of start-ups are disrupting this sector with innovative business models that solve most of the industry pain-points from the supply side,” the report by RedCore, Redseer’s research arm, noted.

Intercity logistics is the movement of goods for more than 200 kms (one side), with a round trip greater than 24 hours.

Nearly 33 per cent of intercity logistics spend is on intermediate and finished goods transport.

“On demand market accounts for 63 per cent of the total long-haul logistics market,” the findings showed.

On-demand freight transport is movement of goods on an immediate basis with prompt payment.

“It helps in satisfying unfulfilled and urgent demands. Shipments are tendered one at a time on a load-by-load basis and price is high in comparison to price offered by contract market,” said the report.

According to the report, the time is ripe for the open marketplace to succeed as factors such as heavy investments in road and transport infrastructure, rapid technology adoption among suppliers, India’s digital push, macro drivers for fleet owners, and India’s massive on-demand/spot market will drive its growth in the near future.

ALSO READ-Ed-tech firm upGrad to acquire Talentedge for 350cr

Previous Story

India-Russia space ties to go beyond Gaganyaan

Next Story

Modi chairs security meet after CDS chopper crash

Latest from Business

India Dominates Global Digital Banking List

Indian banks have observed the most notable gains in day-to-day banking (+9.8 pp) and expanding relationships (+3.4 pp)….reports Asian Lite News As many as 9 Indian banks have been recognised as ‘Digital

India Tops Global Growth Charts Again

India Retains Top Spot as Fastest-Growing Economy, Only Major Nation to Exceed 6%…reports Asian Lite News India remains the world’s fastest-growing major economy and the only nation projected to achieve over 6%
Go toTop

Don't Miss

Sultan Haitham in Delhi as India, Oman pursue free trade deal

The two leaders expressed their keenness to promote bilateral relations

Australia plans to supply solar power to Singapore, will India follow?

Despite the elaborate plans and completed groundwork, Sun Cable’s power