Logistics expansion: India emerges as top choice for APAC 3PL firms; sector driven by tech, e-commerce growth – The Times of India


India is fast becoming the top choice for Asia-Pacific (APAC) third-party logistics (3PL) firms looking to expand, with nearly 70 per cent of occupiers planning to increase their footprint in the country over the next two years, a CBRE report revealed.3PL providers handle end-to-end logistics operations for clients, enabling businesses to focus on core activities while leaving supply chain management to specialists, ANI reported.Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said India’s robust economic growth and resilience amid global uncertainties have positioned it as a premier destination for logistics investment. “The 2025 APAC Logistics Occupier Survey shows that 83 per cent of India-based 3PL respondents expect their business performance to improve over the next 24 months,” he added.According to the report, around 80 per cent of India-based 3PL players plan to expand their portfolios by more than 10 per cent over the next two to five years, driven by e-commerce growth, the rise of quick commerce, and the emergence of non-tier-I cities as key demand hubs.The sector has been a significant contributor to India’s logistics real estate market, accounting for 40–50 per cent of total leasing activity from 2021 to 2024, and over 30 per cent in the first half of 2025.There is a clear shift toward asset-light operations, with over 60 per cent of firms preferring multi-tenanted warehouses, 28 per cent opting for build-to-suit development, and 22 per cent acquiring existing properties. Simultaneously, 3PL companies are embracing technology, including warehouse management software, IoT-enabled sensors, conveyor and sortation systems, Goods-to-Person picking solutions, automated storage and retrieval systems (AS/RS), and robotic arms or cobots, to improve efficiency and accuracy.Between 2021 and 2025, 3PL companies were the main drivers of “big-box” leasing in India, defined as spaces over 100,000 sq. ft., highlighting the sector’s focus on scalable, modern warehouses to meet growing demand from retail, e-commerce, and manufacturing.Among cities, Delhi-NCR led 3PL activity with a 25 per cent share of industrial and logistics (I&L) leasing since 2021, followed by Mumbai at 24 per cent and Bengaluru at 16 per cent. Chennai, Kolkata, and Hyderabad together with these three accounted for nearly 70 per cent of all 3PL leasing activity in the country during this period.





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