With ever-growing consumer demand in the market, the logistics industry has to keep up to match the pace of the demands. Demand for warehousing also grows along in order to fulfill the consumer demand and the warehousing sector has shown immense growth of around 25% every year. The total warehousing space in India was 211 mn sq. ft at the end of 2019 compared to 169 mn sq. ft in 2018.
According to the latest yearly "India Warehousing Market Report" India has an additional warehousing capacity of 193 mn sq. ft. by 2023 which means the warehousing stock of the country will cross 375 mn sq. ft. by 2023 with an increased share of Grade A stocks. 

Currently, the amount of land allotted to warehousing is around 21,163 acre and an addition of 63% more supply can be anticipated. The healthy demand in growth has been observed in Pune, Mumbai, and Ahmedabad. Pune witnessed the highest activity in warehouse leasing while the NCR region saw the largest volume of absorption of warehousing space. 

The introduction of GST strengthened the sector as it received an institutional investment of around 6.5 Billion USD. PE investment in warehousing stooped low to 57 million dollars owing to the Covid-19 pandemic, however, the year 2019 had witnessed $1,508-million PE investments. According to the CEO of Knight Frank, Investors are still optimistic about this sector and it soon sees a faster recovery owing to the nature of the market. 

The pandemic and the economic slowdown have largely impacted the warehousing sector but it remained resilient even with all the problems and recording a growth of 44% CAGR in the last 3 years. Industries such as 3PL, E-Commerce, FMCG and Pharmaceuticals have been the major players to key in increased demand and it is expected to continue even in 2021. 3PL leads the market in warehousing demand followed in tow by E-Commerce and manufacturing sectors.

The E-Commerce sector has been witnessing high growth with 55% CAGR since 2017 and it is expected to bring growth in demand for the next year.