India is rapidly becoming the preferred growth market for third-party logistics (3PL) companies across the Asia-Pacific (APAC) region, with nearly 70% of occupiers planning to expand their footprint in the country within the next two years, according to a new report by CBRE.
3PL firms—specialists that manage end-to-end supply chain operations for client businesses—are seeing India as a key hub for long-term growth. The surge is being driven by the twin engines of e-commerce and quick commerce, along with rising consumption in non-metro cities, which are emerging as new demand centres.
Aggressive expansion plans
The CBRE study found that 80% of India-based 3PL players intend to expand their portfolios by more than 10% over the next two to five years. This expansion will add significant momentum to India’s logistics ecosystem, which is already one of the largest and fastest-growing markets in the APAC region.
3PLs have also been central to the growth of logistics real estate. From 2021 to 2024, they accounted for 40–50% of total leasing activity, while in the first half of 2025 their share remained above 30%.
A shift to flexible and tech-driven models
The sector is showing a marked preference for asset-light operations. More than 60% of firms favor multi-tenanted warehouses, while 28% prefer build-to-suit developments and 22% are acquiring existing facilities. This flexibility allows operators to respond quickly to shifting demand and keep costs under control.
Technology adoption is another defining trend. To enhance speed, accuracy, and efficiency, 3PL providers are deploying:
- Warehouse management systems (WMS)
- IoT-enabled sensors
- Conveyor and sortation systems
- Goods-to-Person (G2P) picking solutions
- Automated Storage and Retrieval Systems (AS/RS)
- Robotic arms and cobots
Such investments underscore the sector’s focus on automation and data-driven operations, aligning India’s warehousing sector with global benchmarks.
Big-box warehouses dominate leasing
Between 2021 and 2025, 3PL companies were the largest drivers of big-box warehouse leasing—facilities of over 100,000 sq. ft.—highlighting their preference for scalable, modern infrastructure that can support surging demand from retail, manufacturing, and online platforms.
Regional hotspots
In terms of geography, Delhi-NCR led 3PL leasing activity, capturing a 25% share of India’s industrial and logistics leasing market since 2021. Mumbai followed closely at 24%, while Bengaluru accounted for 16%. Together with Chennai, Kolkata, and Hyderabad, these markets represented nearly 70% of all 3PL leasing activity in the country during this period.
India’s edge in APAC logistics
Analysts say India’s strong consumption growth, improving infrastructure, and rapid adoption of digital supply chain technologies make it an attractive destination for global logistics players. With demand spilling over from traditional metros to tier-II and tier-III cities, and with technology reshaping operations, India is positioned to remain the top choice for APAC 3PL firms for the foreseeable future.
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