|
The Indian warehousing sector is set for a significant expansion, with demand projected to reach 1.2 billion sq. ft by 2027, according to the report "Future of Logistics: Warehousing Market - India" by JLL India and Miebach Consulting, India.
This growth will encompass Grade A, B, and C warehouses across all Indian cities, reflecting the evolving supply chain requirements. The surge in demand is not limited to increased space but also signals a qualitative shift. High-quality Grade A warehouses are expected to see substantial growth, with projected to expand from 290 million sq. ft in 2023 to 400 million sq. ft by 2027. E-commerce, Third-Party Logistics (3PL), and omni-channel retail are driving this trend, particularly for superior infrastructure. The warehousing landscape is also undergoing a geographic transformation, with growth moving beyond Tier I cities. The report shows a 41 per cent rise in absorption of warehouse space in Tier II and III cities between 2022 and 2023. Sanjay Bajaj, Senior Managing Director of Logistics & Industrial, India, JLL said, "As the industry adapts to these changes, it's also embracing Environmental, Social and Governance (ESG) compliance and the National Logistics Policy's aim to reduce logistics costs to 10 per cent of GDP, setting the stage for a more efficient, sustainable, and technologically advanced warehousing landscape in India". Urban fulfillment needs are another key trend, with an estimated 35 million sq. ft of space required across India by 2027 to support last-mile delivery solutions. This development aligns with India's National Logistics Policy, which aims to reduce logistics costs to 10 per cent of GDP, setting the stage for a more efficient and advanced warehousing landscape. Shubhendu Kumar, Director, Miebach Consulting, India, said, "While warehousing has historically been a fragmented industry, the increasing need for superior infrastructure and larger space parcels is driving significant institutional participation in the sector. He added, "This shift marks a new era in warehousing, one that's critical to the future of logistics and integral to business success in India's rapidly evolving economy." Automation is playing a pivotal role in this transformation, with India expected to become one of the top six users of warehouse automation systems globally by 2026. The market is forecasted to reach USD 2 billion annually, driven by the need for increased efficiency. (ANI)
|
