India Express Delivery Market Assessment, By Services By Business, By Destination, By End-user, By Region, Opportunities and Forecast, FY2018-FY2032F

India express delivery market is projected to witness a CAGR of 12.41% during the forecast period 2024-2031, growing from USD 15.38 billion in FY2024 to USD 39.21 billion in FY2032. The market in India is growing due to several factors, such as the rapid expansion of e-commerce, significantly increasing the demand for advanced logistics and delivery solutions. Consumers are expecting fast and reliable delivery options. The post-COVID-19 period has gained an accelerated trend, pushing businesses to shift to online sales channels and improve their supply chain efficiency. Urbanization and rising disposable income lead the middle-class population to prioritize convenience and fast service, further increasing the need for express delivery.

Surveillance system innovation, route optimization, and automatic sorting enhance customer service operation and quality efficiency. Government initiatives, such as the Make in India campaign and investment in infrastructure, have supported the logistics sector and contributed to better connections and transport time. In addition, as the penetration rate of smartphones and digital payment methods increases, consumer reservations and payment processes are simplified, making it easier to access express services.

Fierce competition has developed, and famous players and new participants are trying to gain market share, which will improve services and reduce prices. This dynamic environment, marked by continuous improvement and adaptation, is positioning the Indian express market for sustained growth over the forecast years. Overall, the convergence of technology, changing consumer behavior, and supportive policies are creating fertile ground for India express logistics market to thrive.

For instance, in April 2023, Ecom Express Limited launched three new delivery services, Same Day Delivery (SDD), Same Day Delivery+ (SDD+), and Next Day Delivery (NDD), to enhance e-commerce logistics in India. These services target faster deliveries for D2C brands, with SDD offering cut-off times of 5 AM and 11 AM, SDD+ providing expedited service until 2 PM, and NDD ensuring next-day intercity delivery by 12 PM. The company focuses on technology and infrastructure to strengthen its position in the growing e-commerce sector.

E-commerce to Fuel Express Delivery Market Growth

India express delivery business has grown rapidly due to e-commerce, which has raised customer expectations for dependable delivery services. Customers' increasing need for faster delivery times as a result of the growing popularity of online buying has forced e-commerce platforms to emphasize swift logistics as a differentiator. Wide-ranging delivery networks, in collaboration with local warehouses and improved last-mile options to increase accessibility, have grown as a result of this change. Infrastructure improvements such as better highways and logistical centers have helped to sustain this expansion further. Modern technological innovations, such as route optimization and real-time tracking, improve productivity and streamline processes. Furthermore, to accommodate a range of customer needs, collaborations between e-commerce businesses and specialist logistics providers have made it possible to integrate cutting-edge delivery models, including planned and same-day deliveries.

For instance, in November 2023, Teachers' Venture Growth (TVG), the venture arm of Canada's Ontario Teachers' Pension Plan (OTTP), invested USD 80 million in e-commerce third-party logistics firm Xpressbees. Investments consist of a combination of primary and secondary shares, with an estimation of about USD 1.5 billion for Xpressbees. This follows a previous USD 40 million funding round in April that included a secondary sale of shares. Xpressbees is planning to use the new capital to expand its business, including its recent acquisition of a messaging company, Trackon. The company aims to expand its service offerings in the logistics sector.

Technology and Automation to Drive Market Growth

Technical results have greatly contributed to the growth of market expressions by improving efficiency, transparency, and customer service. The actual surveillance system allows customers to control delivery and strengthen confidence and satisfaction. Warehouse automation speeds up sorting and handling, minimizing errors and reducing process times, while data analytics allow companies to optimize delivery routes and manage inventory more efficiently, resulting in lower costs and faster service. Mobile apps facilitate ordering and communication, thereby increasing customer engagement. The integration of artificial intelligence for predictive analytics helps in accurate demand forecasting and effective planning. Emerging technologies such as drones and electric vehicles are being explored to provide innovative and sustainable delivery solutions. These advancements will streamline operations and meet growing consumer expectations, enabling rapid delivery service growth in a competitive market.

For instance, in July 2024, DTDC Express partnered with Skye Air Mobility to launch a drone delivery service, marking a significant leap forward in logistics as DTDC celebrated its 35th anniversary. The first delivery covered the 7.5 km distance between Bilaspur and Gurgaon in 3-4 minutes, significantly faster than the 15 minutes via regular road deliveries. The drone system aims to improve delivery speeds while supporting sustainability goals by reducing carbon emissions.

B2B Segment to Dominate India Express Delivery Market Share

With the exponential growth of e-commerce and the increasing need for efficient supply chains, the B2B segment is dominating the express market in India. Businesses, especially in industries such as pharmaceutical, manufacturing, and technology, need fast and reliable logistics solutions to stay competitive. With the introduction of digital devices for order management and further follow-up, requests for express services that are rarely integrated into existing systems have occurred. In addition, urbanization and the development of infrastructure have increased the need for quick logistics in areas with high population density, which has invested in a trusted delivery network. Customization plays a key role as B2B customers often demand personalized solutions to meet their specific needs, such as scheduled deliveries or special attention. Increased competition in the market has reduced costs, making express shipping more accessible to businesses of all sizes. As a result, the B2B segment is prepared for deeper growth to adapt to the development of the environment and improve services following various sector requirements.

For instance, in February 2024, Delhivery has a tie-up with SUGAR Cosmetics by handling logistics for the brand's pan-India B2B operations. SUGAR has rapidly grown to become India's third-largest color cosmetics brand and operates over 45,000 retail stores across the country. SUGAR is known for express parcel shipments. Delhivery will leverage its advanced logistics network to meet the requirements of SUGAR's omnichannel strategy through quick stock replenishment and an intuitive customer dashboard to track shipments. The partnership aims to support SUGAR's rapid growth and increased retail availability across India.

North to Dominate Express Delivery Market Share

Northern India plays a key role in dominating the express delivery market owing to its strategic geographic advantage, robust infrastructure, and high population density. Cities such as Delhi, Gurgaon, and Noida are major logistics hubs with well-connected road, rail, and air networks, facilitating the speedy movement of goods. The tech-savvy consumer demographic has further increased the need for efficient delivery services. Northern states are benefiting from favorable government policies and investments in logistics parks, thereby improving operational efficiency. The presence of major players in the express delivery market, in combination with local startups contributing to healthy competition and innovation, is expected to increase the market size. Companies are increasingly concentrating on fast delivery to meet customer expectations, the combination of resources, infrastructure, and market demand in the North, strengthening its dominant position in the India express delivery market.

In November 2023, Blue Dart Express partnered with India Post to introduce automated Digital Parcel Lockers at selected post offices, enhancing delivery options for customers. This innovation allows recipients to securely retrieve their packages without needing personal receipts, using a code for access. The initiative, powered by Podrones, aims to improve last-mile delivery efficiency and customer convenience. The partnership's focus on leveraging technology for better logistics solutions reinforces Blue Dart's commitment to customer service and innovation in the express delivery market.

Future Market Scenario (FY2025 - FY2032F)

Enhanced use of AI, automation, and drone technology will streamline logistics, optimize routes, and improve last-mile delivery efficiency.

Continued growth of e-commerce will drive demand for faster delivery services, including same-day and hyperlocal options, particularly in smaller cities.

A focus on eco-friendly practices, such as electric vehicles and sustainable packaging, will become a priority as consumers demand greener delivery options.

Companies will prioritize transparency, real-time tracking, and improved customer service to meet rising consumer expectations in a competitive market.

Key Players Landscape and Outlook

Indian express delivery companies are transforming to remain in the competition due to rapid changes in the market. To enhance operability, many technologies, such as AI and machine learning, improve route planning and logistics efficiency. This cuts the delivery time and operational expenses. Businesses are offering same or next-business-day deliveries to satisfy the increasing consumer demand. Sustainability is another facet of great interest that focuses on packaging and electric vehicles of companies that are environmentally friendly and have lower carbon emissions. Also, some of the companies have purchased warehouses and fulfillment centers to enhance stock control and minimize lead time. Loyalty programs and personalized marketing strategies are being introduced to customers with the intention of retaining them and nurturing their brand alliance.

In March 2023, FedEx announced the opening of its first Advanced Capability Community in Hyderabad, India. This initiative aims to develop a diverse workforce, enhance recruitment, and improve operational efficiency through technology and innovation. The Advanced Capability Community will provide shared services to support FedEx's technological needs, contributing to the global supply chain.