India’s express parcel market is undergoing rapid transformation, fueled by the rising demand for e-commerce and hyperlocal deliveries. Consumers increasingly prefer faster delivery services, pushing logistics companies to enhance efficiency. According to Redseer Strategy Consultants, the market is set to reach 24-29 billion shipments by FY2030, growing at a compound annual growth rate (CAGR) of 19-23% from the current 8-9 billion shipments in FY2024.
E-commerce Shipments Surge with Expanding Categories
E-commerce deliveries continue to dominate the express parcel market, with shipments projected to reach 4.8-5.5 billion in FY2025. Compared to FY2024’s 4.4 billion shipments, this segment will grow at a robust CAGR of 23-24%, reaching 15-16 billion shipments by FY2030. Several factors contribute to this expansion, including wider category selections, deeper market penetration, and improved supply chain infrastructure. Businesses invest heavily in logistics networks to meet rising customer expectations for faster deliveries.
Traditional Courier Services Witness Moderate Growth
Traditional courier services, historically focused on document deliveries, are experiencing a shift toward non-document shipments, including e-commerce parcels. These shipments will account for approximately 17% of the express parcel market in FY2025, translating to around two billion parcels. Despite this shift, growth in the traditional courier segment remains modest, with a projected CAGR of 7% until FY2030. The increasing adoption of electronic documentation and e-governance initiatives reduces the demand for traditional courier services, influencing this slower growth rate.
Quick Commerce Becomes the Fastest-Growing Segment
Quick commerce is emerging as the fastest-growing segment within the express parcel industry, driven by the need for ultra-fast deliveries. This sector contributed 7-10% of the overall express parcel market in FY2024 and will expand at a staggering CAGR of 33-50% until FY2030. Consumers increasingly rely on quick commerce platforms for essential and non-essential goods, prompting retailers to optimize their supply chains. The rapid expansion of dark stores and an increasing variety of products available for quick delivery further fuel this growth.
Hyperlocal and Specialty Deliveries Expand Market Share
Hyperlocal deliveries, including online food orders, pharmacy shipments, and consumer-to-consumer transactions, are becoming a significant part of the market. By FY2030, this segment will represent 13% of the total shipment volume, although its growth rate will remain lower than that of quick commerce. The rising demand for faster and more convenient delivery services encourages companies to innovate and develop advanced last-mile logistics solutions. Retailers, logistics firms, and technology providers collaborate to enhance service efficiency and expand customer reach.
Logistics Companies Adapt to Changing Consumer Expectations
Mrigank Gutgutia, Partner at Redseer Strategy Consultants, emphasizes that India’s express logistics market is witnessing a significant transformation. Consumers’ growing comfort with e-commerce, combined with increasing digital adoption, drives this change. To meet evolving consumer expectations, logistics companies invest in automation, AI-driven route optimization, and warehouse management systems. These innovations help businesses enhance operational efficiency and maintain competitive advantages in the fast-paced logistics industry.
Future Outlook: Express Parcel Industry to Redefine Logistics
The express parcel market in India is poised for exponential growth as e-commerce, hyperlocal, and quick commerce deliveries reshape the logistics landscape. Companies must continuously adapt to the evolving industry dynamics and invest in technology-driven solutions. With increasing shipment volumes and changing consumer preferences, the express parcel market will continue playing a crucial role in India’s economic expansion. As businesses compete to offer faster, more efficient delivery services, the industry will experience unprecedented growth, setting new benchmarks for logistics excellence.
