INDUSTRY OUTLOOK

Market Size & Growth

The Indian freight forwarding market (i.e., the segment of logistics dealing with arranging transport of goods) was valued at approx US$12.29 billion in 2024, and is expected to reach about US$17.73 billion by 2030 (~6.4% CAGR for 2025-30).

The broader Indian logistics market (which freight forwarding is a part of) is estimated at ~US$228.4 billion in 2024, and projected to reach ~US$428.7 billion by 2033 (~6.5% CAGR).

According to another source, the freight forwarding sub-market may grow from ~US$13.57 billion in FY2025 to ~US$21.06 billion by FY2033 (~5.65% CAGR).

Take-away: Growth is steady, though not hyper-fast; the market is sizeable and expanding, but many players will face competition and margin pressures.

Key Growth Drivers

Increasing exports & global trade linkages: India’s push to scale exports (manufacturing, e-commerce, supply chain diversification) boosts demand for forwarding services.

Infrastructure improvements: Development of multimodal logistics parks, dedicated freight corridors, improved ports & airports reduce cost/time of freight forwarding.

E-commerce & domestic logistics demand: Growth in online retail, express shipments, last-mile delivery indirectly helps freight forwarders (especially air/sea export and global linking).

Digitisation & value-added services: Forwarders who offer customs clearance, warehousing, door-to-door, real-time tracking gain advantage.

Policy support: Government actions (e.g., National Logistics Policy, industrial corridors) aim to reduce logistics costs and improve efficiency.

Key Challenges & Risks

Fragmentation: The freight forwarding & logistics industry in India remains fragmented with many small players — scale, integration and technology matter.

Mode-mix inefficiencies: Heavy reliance on road transport, under-utilisation of rail/sea can reduce competitiveness.

Regulatory & infrastructure bottlenecks: Customs delays, poor warehousing, insufficient multimodal linkups still hamper operations.

Margin squeeze: As competition intensifies and customers demand more service/visibility (for similar rates), forwarders need to differentiate.

Global trade volatility: Freight forwarding is exposed to global trade patterns, exchange rate risk, geopolitical issues.

Strategic Implications for Freight Forwarders

Focus on value-added services: Not just booking transport, but offering integrated solutions (customs, warehousing, export packaging) may improve margins.

Invest in tech & digital services: Tracking, analytics, visibility for clients will become increasingly important.

Scale & network depth matter: Larger networks, global tie-ups, strong air/sea export capability will be advantageous.

Leverage policy & infrastructure tailwinds: Being well-positioned near new logistics parks, ports, multimodal hubs will help.

Monitor cost control & asset utilisation: Fuel/transport costs, vehicle/trailer utilisation, cross-modal switching matter for profitability.

Geographic and service diversification: With moderate market growth (~5-7% from some estimates), capturing higher-growth niches (like air-cargo, temperature-controlled, export logistics) may drive above-average returns.

Summary

Medium-term (2025-2030): Steady growth (~5-7% annually) in freight forwarding, boosted by exports, e-commerce, infrastructure upgrade.

Long-term: Forwarders who adapt (tech, value services, global linkages) will likely outperform the overall market.

Competitive landscape: As growth is not explosive, efficiency & differentiation will distinguish winners.

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