Indian Grade A Warehousing Demand to Grow 12.5% Annually Until FY30, Reports Alvarez & Marsal

Demand for Grade A warehousing space in India is forecast to grow at a compounded annual growth rate of 12.5 percent until FY30, according to a new report released by professional services firm Alvarez & Marsal (A&M). The report highlights the evolving trends in India's logistics and warehousing sector, emphasizing the transformation of warehouses into sophisticated logistics hubs.

The retail, third-party logistics (3PL), and e-commerce sectors are expected to drive approximately 80 percent of the total demand for Grade A warehousing over the next five years. This growth underscores the critical role of advanced warehousing infrastructure in enhancing customer experience and supporting the nation's economic growth.

Currently, about 70 percent of Grade A demand is concentrated in key metropolitan areas including Delhi NCR, Mumbai, Bengaluru, Chennai, and Pune. The report identifies three pivotal factors driving the sector's transformation: evolving business models, the necessity of balancing operational speed with cost-effectiveness through automation, and a surge in institutional logistics investments amidst land scarcity.

Manish Saigal, A&M India Managing Director, stated that warehouses are evolving from mere storage facilities into multifunctional logistics hubs, which are integral to supply chain efficiency and operational optimization for businesses.