India’s Warehousing Sector to Expand Significantly by 2027, Says JLL India and Miebach Consulting

India’s Warehousing Sector to Expand Significantly by 2027, Says JLL India and Miebach Consulting

India’s Warehousing Sector to Expand Significantly by 2027

The Indian warehousing sector is on the brink of a major expansion, with demand expected to reach 1.2 billion square feet by 2027. This growth, highlighted in the report “Future of Logistics: Warehousing Market – India” by JLL India and Miebach Consulting, will include Grade A, B, and C warehouses across all Indian cities, reflecting changing supply chain needs.

Growth in High-Quality Warehouses

High-quality Grade A warehouses are projected to grow from 290 million square feet in 2023 to 400 million square feet by 2027. This trend is driven by e-commerce, Third-Party Logistics (3PL), and omni-channel retail, which require superior infrastructure.

Geographic and Technological Shifts

The warehousing landscape is expanding beyond Tier I cities, with a 41% increase in warehouse space absorption in Tier II and III cities between 2022 and 2023. Sanjay Bajaj, Senior Managing Director of Logistics & Industrial, India, JLL, noted the industry’s shift towards Environmental, Social, and Governance (ESG) compliance and the National Logistics Policy’s goal to reduce logistics costs to 10% of GDP.

Urban Fulfillment and Automation

Urban fulfillment needs are rising, with an estimated 35 million square feet required by 2027 for last-mile delivery solutions. Shubhendu Kumar, Director, Miebach Consulting, India, emphasized the increasing need for superior infrastructure and larger spaces, marking a new era in warehousing. Automation is crucial in this transformation, with India expected to become a top user of warehouse automation systems globally by 2026, reaching a market value of USD 2 billion annually.

Doubts Revealed


Warehousing Sector -: The warehousing sector involves large buildings where goods are stored before they are sold or distributed. It’s like a big storage room for companies to keep their products safe and organized.

JLL India -: JLL India is a company that provides real estate services. They help people and businesses buy, sell, and manage properties like buildings and land.

Miebach Consulting -: Miebach Consulting is a company that gives advice to businesses on how to improve their supply chain and logistics. They help companies make their processes more efficient.

Grade A warehouses -: Grade A warehouses are high-quality storage buildings. They are built with the best materials and have modern facilities to keep goods safe and easy to access.

E-commerce -: E-commerce is buying and selling goods or services over the internet. It’s like shopping online from websites like Amazon or Flipkart.

Logistics -: Logistics is the process of planning and managing how goods are moved from one place to another. It involves transportation, storage, and delivery of products.

Tier I, II, III cities -: In India, cities are often categorized into tiers based on their size and development. Tier I cities are the largest and most developed, like Mumbai and Delhi. Tier II and III cities are smaller and less developed but are growing quickly.

Automation -: Automation means using machines and technology to do tasks without human help. In warehouses, automation can involve robots and software that help move and manage goods more efficiently.

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