The cost of global parcel delivery, excluding pickup, line-haul, and sorting, amounts to ~ EUR 70 billion, with China, Germany, and the United States accounting for more than 40 percent of the market

Highest Cost Challenges

However, the market is not just large, it is also highly dynamic, with growth rates in 2015 ranging between 7 and 10 percent in mature markets, such as Germany or the US, and almost 300 percent in developing markets such as India

In her Budget 2019 speech, Finance Minister of India, Nirmala Sitharaman, stressed the importance of robust physical connectivity in achieving the government’s vision of a $ 5 trillion economy. Existing government measures across various modes of transport, such as the Pradhan Mantri Gram Sadak Yojana, industrial and freight corridors, Bharatmala and Sagarmala projects, Jal Marg Vikas, UDAN Schemes and the recent Agri Reform Bills are important enablers for enhanced logistics

The Indian logistics sector, already a $ 200 billion market, is set to grow at over 10 percent CAGR in the next five years to reach around $ 320 - 330 billion. Interestingly, the growth in B2B eCommerce, the primary driver for logistics, is growing by 300-400% per year!