New Delhi [India], September 28 (ANI): India is emerging as the most-preferred market for expansion by third-party logistics (3PL) players in the Asia-Pacific (APAC) region, with nearly 70 per cent of occupiers planning to expand their footprint in the country over the next two years, according to a report by CBRE.
3PL players handle the complete supply chain and logistics operations of their clients, allowing them to focus on their core business.
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 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 latest report also said that around 80 per cent of the third-party logistics (3PL) players in India are planning to expand their portfolio by over 10 per cent 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 per cent.
Moreover, there is a rising preference to remain asset light with over 60 per cent 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 per cent) and purchasing existing assets (22 per cent).
The report added that there is also a clear shift towards future-ready warehousing solutions to support rapid business growth and competitiveness. Around 76 per cent 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 towards intelligent, automated warehouses. Automated Storage and Retrieval Systems (AS/RS) 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 (exceeding 100,000 sq. ft.) 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.
Also, 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. (ANI)
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