Indian Economy News

India emerges as the most-preferred market for expansion among Asia-Pacific (APAC)-based third-party Logistics (3PL) firms

  • IBEF
  • September 26, 2025

India is fast emerging as the preferred destination for third-party logistics (3PL) expansion in the Asia-Pacific (APAC) region, with nearly 70% of occupiers planning to grow their footprint in the country over the next two years, according to a CBRE report. Supported by resilient economic growth and rising demand from e-commerce, quick commerce, and non-tier-I markets, 3PL companies are becoming the largest drivers of the country’s logistics real estate sector. Between 2021 and H1 2025, these firms accounted for 40-50% of total leasing activity, with Delhi-NCR, Mumbai, and Bengaluru leading as major hubs. The adoption of multi-tenanted buildings by over 60% of India-based 3PL players allows for rapid scaling, lower upfront costs, and risk diversification, making them well-positioned to meet surging demand.
The sector is also witnessing a clear shift towards future-ready, technology-driven warehouses. Around 76% of 3PL companies are now integrating warehouse management software. At the same time, automated solutions such as Internet of Things (IoT) sensors, conveyor systems, Goods-to-Person picking, Automated Storage and Retrieval Systems (AS/RS), and robotic arms are increasingly deployed to enhance efficiency, accuracy, and throughput. This adoption of intelligent logistics infrastructure underscores India’s evolution as a global trade and manufacturing hub, with 3PL players playing a pivotal role in building scalable, efficient, and competitive supply chains that will drive the country’s economic growth.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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