India Becomes Top Choice for APAC-Based 3PL Companies' Expansion
India is rapidly becoming the most-preferred market for expansion among third-party logistics (3PL) firms in the Asia-Pacific region. According to a report by CBRE, nearly 70% of occupiers plan to expand their footprint in the country over the next two years, driven by robust economic growth and rising demand from e-commerce and quick commerce sectors.
3plLogisticsReal EstateEcommerceAutomationReal Estate NewsSep 28, 2025
According to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, India's rapid economic expansion and resilience amidst global geopolitical uncertainties have made it an attractive destination for investments from APAC-based 3PL companies. 'Fuelled by resilient economic growth, India is emerging as a premier destination for warehousing expansion among businesses. In the 2025 AC Logistics Occupier Survey, 83% of India-based 3PL respondents stated that their business performance would improve over the next 24 months,' he said.
The latest report also indicates that around 80% of the third-party logistics players in India are planning to expand their portfolio by over 10% in the next two to five years to meet the rise in demand driven by e-commerce, quick commerce, and the emergence of non-tier-I markets as growth hubs. These companies have positioned themselves as the largest demand drivers for the country's logistics real estate market. According to the report, 3PL providers accounted for 40-50% of the sector's total leasing activity between 2021 and 2024. In H1 2025, they garnered a share of more than 30%.
Moreover, there is a rising preference to remain asset light, with over 60% of surveyed India-based 3PL firms stating they would opt for a space in multi-tenanted buildings over the next 24 months, rather than building their own facilities. This is followed by build-to-suit development and purchasing existing assets. The report added that there is also a clear shift towards future-ready warehousing solutions to support rapid business growth and competitiveness. Around 76% of the surveyed 3PL companies said that they are now adopting warehouse management software in their logistics operations.
Furthermore, 3PL entities are increasingly adopting technologies such as Internet of Things sensors, conveyor and sortation systems, and Goods-to-Person picking systems, reflecting a broader shift towards intelligent, automated warehouses. Automated Storage and Retrieval Systems and robotic arms/cobots are also gaining traction as companies seek to reduce errors, enhance inventory management, and improve throughput. Between 2021 and 2025, 3PL firms were the primary drivers of 'big-box' leasing in India, in terms of both value and volume. This reflects the growing need for scalable, future-ready warehousing solutions to meet the surge in demand from e-commerce, retail, and manufacturing.
Delhi-NCR has emerged as the largest 3PL hub in the country, accounting for 25% of total I&L real estate leasing activity since 2021. Mumbai follows it closely with a 24% share. Bengaluru has emerged as the third-largest hotspot for the sector with a 16% share. The top six cities, including Chennai, Kolkata, and Hyderabad, represent nearly 70% of the total 3PL leasing activity between 2021 and 2025 YTD.
Frequently Asked Questions
Why are APAC-based 3PL companies choosing India for expansion?
APAC-based 3PL companies are choosing India due to its rapid economic growth and resilience amidst global geopolitical uncertainties. India's robust economic expansion and rising demand from e-commerce and quick commerce sectors make it an attractive market for investments.
What percentage of 3PL companies plan to expand in India?
According to a report by CBRE, nearly 70% of occupiers are planning to expand their footprint in India over the next two years.
How are 3PL companies driving the logistics real estate market in India?
3PL companies have positioned themselves as the largest demand drivers for India's logistics real estate market, accounting for 40-50% of the sector's total leasing activity between 2021 and 2024. They are also driving the demand for 'big-box' leasing and future-ready warehousing solutions.
What technologies are 3PL companies adopting in India?
3PL companies in India are adopting technologies such as Internet of Things sensors, conveyor and sortation systems, Goods-to-Person picking systems, Automated Storage and Retrieval Systems, and robotic arms/cobots to enhance their operations, reduce errors, and improve throughput.
Which cities are the top 3PL hubs in India?
Delhi-NCR, Mumbai, and Bengaluru are the top 3PL hubs in India, accounting for 25%, 24%, and 16% of total I&L real estate leasing activity, respectively, since 2021.
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