Logistics Expansion: India Becomes Preferred Destination for APAC 3PL Companies Amid Tech and E-Commerce Growth
India is rapidly emerging as the preferred destination for third-party logistics (3PL) firms in the Asia-Pacific region, with nearly 70% of companies planning to expand their operations in the country over the next two years, according to a recent CBRE report. The report highlights that 83% of India-based 3PL providers expect improved business performance in the coming two years, driven by robust economic growth and the increasing demand for logistics services. This trend is further supported by the rise of e-commerce and the expansion of logistics hubs in non-tier-I cities.
Growth of the 3PL Sector in India
The logistics sector in India is witnessing significant growth, with approximately 80% of 3PL companies planning to expand their portfolios by over 10% in the next two to five years. This expansion is largely fueled by the booming e-commerce market, the rise of quick commerce, and the emergence of non-tier-I cities as vital demand centers. The 3PL sector has become a crucial player in India’s logistics real estate market, accounting for 40-50% of total leasing activity from 2021 to 2024, and over 30% in the first half of 2025. This growth underscores the increasing reliance on logistics services as businesses seek to streamline their operations and focus on core activities.
Shifts in Operational Strategies
A notable trend in the logistics sector is the shift towards asset-light operations. More than 60% of firms are opting for multi-tenanted warehouses, while 28% are choosing build-to-suit developments, and 22% are acquiring existing properties. This shift reflects a strategic move by companies to enhance flexibility and reduce capital expenditure. Additionally, 3PL providers are increasingly adopting advanced technologies to boost efficiency and accuracy in their operations. Innovations such as warehouse management software, IoT-enabled sensors, and automated storage and retrieval systems are becoming commonplace, enabling firms to meet the growing demands of their clients.
Leasing Activity and Regional Insights
Between 2021 and 2025, 3PL companies have been the primary drivers of “big-box” leasing in India, which refers to spaces exceeding 100,000 square feet. This trend highlights the sector’s focus on scalable and modern warehouses to accommodate the rising demand from retail, e-commerce, and manufacturing sectors. Among major cities, Delhi-NCR has emerged as a leader in 3PL activity, accounting for 25% of industrial and logistics leasing since 2021. Mumbai follows closely with a 24% share, while Bengaluru contributes 16%. Together, these cities, along with Chennai, Kolkata, and Hyderabad, represent nearly 70% of all 3PL leasing activity in the country during this period, showcasing the concentrated growth in key urban centers.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
