Bengaluru, March 28 || India’s express parcel market is set for exponential growth, adding 24-29 billion shipments to the logistics sector by FY2030, a report showed on Friday.
This is likely to be a compound annual growth rate (CAGR) growth of 19-23 per cent from FY2024’s scale of 8-9 billion shipments.
In the current fiscal (FY25), the market is estimated to reach 10-11 billion shipments, fuelled by the expanding e-commerce sector, especially non-horizontals and the rise of hyperlocal/quick commerce, according to the report by Redseer Strategy Consultants.
E-commerce (not including hyperlocal) accounted for more than 50 per cent of the express parcel market in FY2025, with approximately 4.8-5.5 billion shipments. This is expected to grow to 15-16 billion shipments by FY 2030, contributing to 55-60 per cent of the express parcel market by that time.
The report mentioned that India’s express parcel market is shifting from traditional couriers to e-commerce and hyperlocal shipments, driven by digital adoption, demographic shifts and urbanisation.
“People now expect faster, more convenient deliveries, which is fuelling a surge in e-commerce and hyperlocal shipments while traditional parcels grow much more slowly,” said Mrigank Gutgutia, Partner at Redseer Strategy Consultants.
With express parcel volumes set to grow significantly between FY20-30 powered by the e-commerce surge, express logistics players need to realign their strategies to stay ahead and make the most of the fast growing e-commerce and hyperlocal opportunity landscape, he added.