About 80% of 3PL players in India plan to expand portfolio by over 10% by 2030

National, September 23, 2025 – CBRE South Asia Pvt. Ltd., India’s leading real estate consultancy, today released its latest report “Built to Scale: How 3PL is Solving India’s Supply Chain Puzzle”, highlighting that around 80% of the third-party logistics (3PL) players in the country 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 and quick commerce sectors, along with the emergence of non-tier-I cities as growth hubs.

3PL players handle the complete supply chain and logistics operations of their clients, allowing them to focus on their core business. These companies have positioned themselves as the largest demand drivers for the country’s logistics real estate market. According to the report, they 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%.

According to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, this shows the high business confidence among the 3PL occupiers.

“Fuelled by resilient economic growth, India is emerging as a premier destination for warehousing expansion among businesses. In the 2025 APAC Logistics Occupier Survey, 83% of India-based 3PL respondents stated that their business performance would improve over the next 24 months,” he said.

The report further added that 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 (28%) and purchasing existing assets (22%).

Ram Chandnani, Managing Director, Leasing Services – CBRE India, said that this strategy helps the companies to scale faster and lower their costs.

“3PL players want to expand rapidly to match the demand arising from the growth of e-commerce and quick commerce, along with the infrastructure push from the government. Multi-tenanted buildings allow them to lower the upfront costs, use proven infrastructure, and diversify the risk from concentration, making them ideal for companies navigating market demand. This evolution underscores the sector’s pivotal role in building future-ready supply chains that will power India’s journey towards becoming a global trade and manufacturing hub."

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 also increasingly adopting technologies such as Internet of Things (IoT) sensors, conveyor and sortation systems, and Goods-to-Person picking systems, reflecting a broader shift toward intelligent, automated warehouses. Automated Storage and Retrieval Systems (AS/RS) and robotic arms / cobots are gaining traction as companies seek to reduce errors, enhance inventory management, and improve throughput.

During 2021-H1 2025, 3PL firms were the primary drivers of “big-box” leasing (>100,000 sq. ft.), in terms of 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.

Also, Delhi-NCR has emerged as the largest 3PL hub in the country, accounting for 25% of total industrial and logistics (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 since 2021.