Warehousing space demand soars amid new market trends

According to Savills India, international property consulting firm, industrial and warehousing space absorption is expected to grow 83% to 47.7 million sq. ft. in 2021. The pandemic has created opportunities for the warehousing sector as demand for cold chains, pharmaceutical warehouses, and growth in e-commerce and organized retail are expected to propel warehousing demand.

Amid the e-commerce boom, retailers need to add more inventory as well as increase distribution center footprints across the country to meet the surge in demand. In addition, manufacturers are also inclined on diversifying their supply chains further creating more opportunities for third-party logistics (3PLs) companies.  As consumers get more comfortable with online shopping, faster delivery times and same-day delivery expectations are putting pressure on retailers and wholesalers to develop fulfillment centers in Tier II and Tier III cities which is pushing warehousing growth not seen earlier.

With new policies and government initiatives in place, India is poised to give impetus to domestic manufacturing and diversify its supply chain to avoid any future disruptions. The warehousing sector is expected to gain owing to these key factors and evolving behavior.

As demand for warehousing space boom, demand for solutions such as material handling equipment, automation & robotics, software products, logistics & infrastructure solutions among others is going to increase. Take advantage of this expected growth by participating at India Warehousing Show – a platform which brings the global community of warehousing, logistics, and supply chain together.