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

Gold Shines Bright Amid Global Jitters

Gold and silver continued their bullish run on Monday, scaling new highs amid mounting global uncertainties, heightened geopolitical tensions, and growing expectations of a US Federal Reserve rate cut. According to the

ADNOC signs 15-year LNG deal with Indian Oil

Under the deal, LNG cargoes can be delivered to any port across India, enhancing the country’s energy security and meeting its rising energy demand. Abu Dhabi National Oil Company (ADNOC) has signed

Canada to lift counter-tariffs on US goods

Canadian Prime Minister Mark Carney has announced that Ottawa will remove its counter-tariffs on US goods covered under the Canada-US-Mexico Agreement (CUSMA), beginning 1 September. The move marks a partial easing of

PM Modi: India poised to lead next tech wave

PM Modi underscored that the country is poised to lead the next wave of digital transformation in 5G…reports Asian Lite News Prime Minister Narendra Modi on Wednesday hailed India’s progress in expanding
Go toTop

Don't Miss

America divided as Modi courts east bloc

Trump’s trade adviser Peter Navarro denounced PM Modi’s decision to

Canadian lawmakers seek direct flights to Amritsar

There are currently no direct flights between Canada to Amritsar,