The next few years will be very special for the Indian logistics industry. As per the data and research, 2024 is going to be very special for the Indian logistics industry. Right now, the logistics industry is getting all pumped up for the big changes that are happening. Currently, there is a huge increase in the demand for the logistics industry.
However, there are still many great years to come for the industry. We believe that the next few years are going to be the best years that will boom the revenues of the industry and help them grow more and more. This article is all about the reasons why we think that 2024 is going to be special for the Indian logistics industry. We will see a few important factors that you need to keep in mind. Due to the same, there will be a huge increase in demand. Let’s start.
(a) Many Upcoming Expressways
The government is focusing more and more on infrastructure. Recently, there were many expressways announced that are expected to be completed before 2024. Some of these expressways might are completed at the end of the year.
As the expressways increases, it will become easier and easier for the logistics industry to travel and transport goods from one place to another. Recently, the new green expressway was announced. It will help the motors to travel from Bengaluru to the channel in just 2 hours of the time. Yes, you read it right.
So, our point is that as the road transportation is getting better and better, it is becoming easier and easier to move goods from one place to another. Better roadways not only allow you to travel faster but will also save you some costs on the mailing of your vehicle. When the trucks travel through the expressways, it can give you better mileage which will eventually help you cut the cost. Further, it will also need less maintenance. Not to mention, as the drivers feel good about driving the trucks in the expressways, it will help you in maintaining a proper work-life balance for the drivers as well.
(b) Electrical Vehicle Technology
Electrical vehicle tech will help you in the improving logistics industry. As of now, there are very few options available for the trucks and heavy load vehicles to switch to electric. However, as the electric tech industry is growing, it will become easier to get an EV-operated vehicle.
To promote the EV changes in the industry, the government will also introduce some discounts and subsidies that will help you in changing your fleet. Now, talking about the direct benefits, it will help you in saving the fuel cost.
We all know that it’s becoming more and more expensive to get fuels. Therefore, having EV operating vehicles will help you n saving the cost. The EV vehicles are expensive right now. However, the government is costly doing everything it can to boost EV sales and to make sure that everyone adopts EV tech.
So, you will not only save a lot in fuel but it will also help you in fighting for the cause. As you are not using petrol or diesel, you are doing your part in saving the environment. Even your customers will feel better using your service as you are using EV tech for the vehicles.
(c) Market Capital
For industries such as logistics, GDP plays a very important role. Today, our country’s GDP is growing a lot more. As the GDP growth is increasing, market capitalization is also increasing. If people are spending more money and there is more money in the market, you are more likely to win the deals.
When the total market cap of the logistics industry goes higher, it simply means that there are more customers you can win. When there are more and more people ordering and using the services, the market cap goes up. No doubt, when this happens, it will also increase the competition in your field.
However, as long as you keep providing great services to your customers, you will likely do well and dominate the field in the best way possible. Therefore, you don’t need to worry about the competition. When the market cap increases, it also increases the SAM (service addressable market). In simple words, you can provide services to more people as more people are willing to buy your services. In this case, if 10 out of 100 people might be wanted to use your services, the number might increase to 15. So, you will have more chance of getting the customer.
(d) Efficient Customer
Customers are now understanding the logistics industry. So, that’s one of the biggest benefits you will get when you start a business in the logistics industry. As people know your business better, they become more efficient.
Previously, if there were some issues with the delivery, the customer wouldn’t understand and it would leave a very bad impression on your company. However, now, the times have changed. The customer understands the entire process. So, even if there is a small mistake from your side or a delay in the delivery, there is more likely that the customer will understand the issue rather than simply shouting at you.
Along with this, nowadays, businesses are the major customer of the logistics industry. In the future, it will increase more. There will be more and more businesses who will be using your services for doing all the things. By 2024, this number will increase more. As India is now focusing more on the eCommerce industry, the logistics industry will have a huge boom in the future. Further, the exports are also increasing. So, if you are providing services internationally, you will make a lot more revenue. It will be a golden period.
(e) Adoption of Technology
The next reason why 2024 is going to be very special for the Indian logistics industry is because of the adoption of tech. Today, most businesses have already adopted the technology. As more and more businesses are adopting tech, it is becoming easier for them to run the business.
Earlier, logistics staff had to calculate a lot of revenue by themselves. It was becoming harder and harder to keep a track of all the trucks and have the equipment ready when the truck arrives. Also, there was no proper system that could help them with all their needs. If the logistics industry had more than 5 branches, it was become very hard to get the data from all the branches and run some numbers.
Previously, everything was done through Excel sheets or manually. Now, companies like Bharat Software Solutions are proving the best Logistics and transport management system that will allow logistic businesses to manage everything in one dashboard. The tech is just getting started. In the coming years, by 2024, there will be more efficient software that will help you make better decisions and get the best out of your journey. You can always use the opportunity and enable tech for your business.
(f) Toll Plazas Fewer Highways
Toll taxes are increasing a lot. If you calculate the total cost you are spending just on the toll plaza, it will be a lot more than what you have guessed. It is bringing down the profits and revenue of your business.
However, this is changing as we are moving further. Recently, the government announced that you will only have to pay the toll plaza for the road you have traveled. So, if you have not traveled more KMs in the expressway, you will save a lot more money here.
That’s not our main point here. Now, the toll Plaza is decreasing. As the toll plaza is decreasing and there are fewer highways where you will find a toll plaza, you will save some decent money here.
The toll for the heavily loaded vehicles is a lot more than the normal vehicle. In the logistics businesses, there are only heavy-loaded vehicles that are traveling. So, the toll is very much important.
So, this will be yet another great benefit you will get in the upcoming years. Surely as the highways and expressways are increasing, for a while, you will have to pay more tolls. However, it will decrease as we move further in the coming years.
Rishit Bhatt is a content strategist and a professional writer with a keen interest in technology and tech-enabled businesses. He aims to help businesses integrate tech into their on-premises infrastructure with technical documentation and helpful articles.