India is rapidly establishing itself as the most preferred market for third-party logistics (3PL) players looking to expand their operations within the Asia-Pacific region. A recent report by CBRE highlights this trend, indicating that nearly 70 percent of occupiers in the 3PL sector are planning to expand their footprint in the country over the next two years. This surge in interest is largely attributed to India's robust economic expansion and its resilience amidst global geopolitical uncertainties, making it an attractive investment destination for AC-based 3PL companies.

The optimism within the sector is palpable, with 83 percent of India-based 3PL respondents in the 2025 AC Logistics Occupier Survey stating an expectation of improved business performance over the next 24 months. Furthermore, approximately 80 percent of third-party logistics players in India are planning to expand their portfolios by more than 10 percent within the next two to five years. This significant growth is primarily driven by the escalating demands of e-commerce, quick commerce, and the emergence of non-tier-I markets as crucial growth hubs, positioning 3PL companies as major demand drivers for the country's logistics real estate market.

Indeed, 3PL providers have played a pivotal role in the logistics real estate sector, accounting for 40-50 percent of the total leasing activity between 2021 and 2024. In the first half of 2025, their share remained substantial, exceeding 30 percent. This reflects the increasing need for scalable and future-ready warehousing solutions to meet the burgeoning demand from e-commerce, retail, and manufacturing sectors. 3PL firms have been the primary drivers of "big-box" leasing in India, both in terms of value and volume, over the period from 2021 to 2025.

There is also a clear operational shift towards maintaining an asset-light model, with over 60 percent of surveyed India-based 3PL firms indicating a preference for multi-tenanted buildings over the next 24 months, rather than constructing their own facilities. This strategy is closely followed by build-to-suit development and the acquisition of existing assets.

Moreover, the sector is embracing future-ready warehousing solutions to support rapid business growth and enhance competitiveness. Approximately 76 percent of the surveyed 3PL companies are now adopting warehouse management software in their logistics operations. Beyond WMS, there is a growing adoption of advanced technologies such as Internet of Things (IoT) sensors, conveyor and sortation systems, and Goods-to-Person picking systems. Automated Storage and Retrieval Systems (AS/RS) and robotic arms/cobots are also gaining traction, as companies strive to reduce errors, optimize inventory management, and improve throughput in their intelligent, automated warehouses.

Geographically, Delhi-NCR has emerged as the largest 3PL hub in India, accounting for 25 percent of total industrial and logistics (I&L) real estate leasing activity since 2021. Mumbai closely follows with a 24 percent share, while Bengaluru stands as the third-largest hotspot for the sector with a 16 percent share. Collectively, the top six cities, which also include Chennai, Kolkata, and Hyderabad, represent nearly 70 percent of the total 3PL leasing activity recorded between 2021 and 2025 year-to-date.