ID: PMRREP34486| 200 Pages | 16 Dec 2025 | Format: PDF, Excel, PPT* | Industrial Automation
India's industrial racking market was valued at US$661.5 million in 2025 and is projected to reach US$1,232.8 million, growing at a CAGR of 9.3% between 2025 and 2032.
This robust expansion reflects the country's rapidly evolving logistics infrastructure, accelerating e-commerce adoption, and transformative shifts in manufacturing and supply chain management.
The market's trajectory is underpinned by three critical forces: the extraordinary surge in warehousing demand driven by e-commerce platforms and 3PL operators, the strategic emphasis on manufacturing localization through government initiatives such as the Make in India campaign and Production Linked Incentives (PLI) scheme, and the widespread modernization of storage systems across key industrial sectors including automotive, pharmaceuticals, food processing, and retail.
| Key Insights | Details |
|---|---|
| Industrial Racking Market Size (2025E) | US$661.5 Million |
| Market Value Forecast (2032F) | US$1232.8 Million |
| Projected Growth (CAGR 2025 to 2032) | 9.3% |
| Historical Market Growth (CAGR 2019 to 2024) | 8.6% |
The e-commerce sector has emerged as a dominant force reshaping India's warehousing and logistics landscape, with direct implications for the industrial racking market demand. During H1 2025, e-commerce platforms leased 4.5 million square feet of warehousing space across India's eight primary markets, representing a commanding 25% share of total leasing activity and a 137% surge from the prior year in Q3 2025.
India's e-commerce market reached US$125 billion in 2024 and is projected to expand to US$345 billion by 2030, propelled by 270 million online shoppers and accelerating adoption in tier II and tier III cities. This explosive growth necessitates sophisticated storage infrastructure optimised for rapid order fulfilment, complex inventory management, and dynamic product rotation.
Quick commerce platforms alone have witnessed extraordinary momentum, with consumers spending Rs. 64,000 crore (US$7.47 billion) in FY25, more than doubling FY24 levels, and projections indicating Rs. 2,00,000 crore (US$23.34 billion) by FY28.
These operational requirements drive sustained demand for selective racking systems offering flexible access, medium-duty and heavy-duty configurations enabling layered storage, and mobile racking solutions facilitating rapid reconfiguration.
The industrial racking market directly benefits from warehousing density optimisation initiatives, in which businesses maximise vertical space utilisation through advanced pallet racking systems and narrow-aisle configurations essential to meeting fast-moving consumer expectations.
India's manufacturing sector is undergoing unprecedented transformation through government initiatives and private investment, fundamentally altering demand dynamics for industrial storage solutions.
The automotive industry produced over 3.1 crore vehicles in FY25, with major manufacturers including Maruti Suzuki, Tata Motors, Hyundai, Mahindra & Mahindra, and emerging players such as BYD and VinFast expanding production capacity and establishing new manufacturing facilities across India. The chemical industry is experiencing rapid growth driven by rising domestic demand and strategic positioning under the China+1 supply chain diversification strategy.
Government support mechanisms such as the PLI scheme, Automotive Mission Plan 2026, and Make in India 2.0 are accelerating industrial localisation and manufacturing density. The National Logistics Policy (NLP) and PM Gati Shakti Master Plan are integrating 57 ministries through a unified digital infrastructure, enabling efficient supply chain operations that require robust warehousing and storage systems.
Manufacturing sectors requiring sophisticated inventory management, particularly automotive, chemicals, pharmaceuticals, and food processing, are increasingly adopting specialised racking systems to support just-in-time manufacturing and optimise warehouse operations.
Warehouse automation and IoT-enabled inventory management systems are fundamentally transforming storage solution requirements, creating demand for technologically integrated racking systems.
The industrial racking market is experiencing accelerated adoption of IoT-enabled racking systems that offer real-time inventory monitoring, automated picking, and integrated tracking, enhancing operational efficiency.
Generative AI is projected to improve warehouse productivity by 35-37% by 2030, with 48% of Indian companies already deploying AI proofs-of-concept in logistics operations, driving demand for compatible storage infrastructure.
Digital platforms, including the Government e-Marketplace (GeM), with cumulative GMV crossing INR15,00,000 crore (US$171.3 billion) by August 2025, are standardizing procurement processes and emphasizing compliant, technology-integrated warehouse solutions.
Advanced warehousing facilities featuring grade-A quality infrastructure, automated storage and retrieval systems (ASRS), and AI-powered inventory management are capturing increasing market share, with 84% of new warehousing supply in Q3 2025 achieving Grade A certification.
Modular and customizable racking systems integrating seamlessly with warehouse management software, sensor technologies, and automation frameworks are increasingly preferred by industry participants seeking operational excellence and supply chain transparency.
Despite strong growth drivers, India's industrial racking market faces significant constraints related to substantial initial investment requirements and cost volatility. While warehousing demand has surged 63% year-on-year through H1 2025, supply additions face challenges, including limited land availability, rising acquisition costs, and project completion delays across primary markets such as Bengaluru, Chennai, Delhi-NCR, and Mumbai.
High initial capital investment for advanced racking systems, automation integration, and compliance infrastructure creates barriers for small and medium enterprises and logistics operators in emerging markets, potentially restraining market penetration in tier II and tier III cities.
Steel prices and raw material costs fluctuate directly, impacting racking system manufacturing economics and potentially compressing margins during periods of commodity price volatility.
Retrofitting existing warehouses with modern racking infrastructure requires significant downtime and operational disruption, leading some companies to defer upgrades or adopt incremental capacity-expansion approaches, thereby potentially slowing Industrial Racking Market growth among cost-conscious operators prioritising near-term cash preservation over long-term efficiency optimisation.
Significant opportunities are emerging from India's accelerated focus on logistics modernisation and geographic market expansion into underserved regions. The National Logistics Policy and PM Gati Shakti Master Plan are catalysing multimodal infrastructure development across 57 government ministries, establishing foundational conditions for systematic warehousing expansion beyond traditional metropolitan clusters.
Record cargo movement on inland waterways-reaching 145.5 million tonnes in FY25-and Eastern and Western Dedicated Freight Corridor expansion (96% operational as of March 2025) are creating new logistics hubs requiring warehousing infrastructure investment.
The development of Multimodal Logistics Parks (MMLPs) across India is establishing new warehousing clusters in secondary and tertiary markets, creating expansion opportunities for racking system manufacturers beyond saturated metropolitan regions.
The India Industrial Racking Market stands to benefit substantially from geographic diversification, as states including West Bengal, Odisha, and Jharkhand prioritise industrial corridor development and government infrastructure investments, potentially transforming these regions into significant centres of warehousing demand.
Companies establishing manufacturing and distribution operations in newly developed logistics corridors require complete storage infrastructure solutions, creating greenfield opportunities for integrated racking system deployment.
Regional specialisation opportunities are emerging across textiles, pharmaceuticals, automotive, and food processing clusters, where concentrated industrial activity creates demand for specialised racking configurations addressing sector-specific requirements.
The expansion of cold chain infrastructure-supported by government initiatives and private investment-represents a distinct growth vector for specialised racking systems designed for temperature-controlled environments, with India's food processing sector valued at US$ 354.5 billion in 2024 and projected to reach US$ 700 billion by 2030, creating substantial demand for cold storage racking solutions.?
Third-party logistics (3PL) operators have emerged as primary growth drivers in India's warehousing and logistics sector, representing 32% of total warehousing leasing activity in H1 2025 and establishing sustained demand for storage infrastructure optimization.
3PLs captured 34.1% market share in the Industrial Racking Market's end-use segment in 2025, and their rapid expansion, driven by manufacturing decentralization, e-commerce fulfillment requirements, and supply chain resilience investments, creates sustained demand for modular, scalable racking systems that enable flexible storage configurations and rapid capacity redeployment.
The exponential growth of quick commerce, subscription-based e-commerce, and specialised logistics services is compelling 3PLs to invest in technologically advanced warehouse facilities that offer real-time inventory visibility and optimised space utilisation.
India Industrial Racking Market benefits from 3PL operators' requirements for high-density storage solutions, narrow-aisle systems that maximize space efficiency, and mobile racking systems that enable rapid facility reconfiguration as customer requirements evolve.
Supply chain diversification under China+1 strategies and increasing nearshoring by global manufacturing companies are driving 3PL facility expansion in India, with particular concentration in automotive, electronics, pharmaceuticals, and consumer goods logistics.
Emerging 3PL segments, including cold chain logistics, specialised pharmaceutical handling, and technology-enabled fulfilment services, require sophisticated storage infrastructure, creating premium market segments for advanced racking system solutions.
As 3PLs increasingly compete on service velocity, cost efficiency, and supply chain visibility, investments in space optimisation and automation-compatible storage systems become essential competitive differentiators, sustaining Industrial Racking Market growth through ongoing infrastructure modernisation.
Selective racking systems remain the industrial racking market's largest design segment, commanding 19.2% market share in 2025. These systems offer an optimal balance between storage density and accessibility, enabling direct forklift access to each pallet from both sides, making them ideal for operations requiring product mix flexibility and frequent inventory rotation.
Selective racking's dominance reflects its universal applicability across diverse industries-from automotive components and food & beverage products to pharmaceutical inventories and retail merchandise-where operational requirements demand rapid stock access and straightforward inventory management using standard material handling equipment.
Narrow and wide-aisle racking systems represent the fastest-growing design segment in the Industrial Racking Market, driven by intensifying space utilisation imperatives and automation integration trends. These systems enable vertical storage-density optimisation while maintaining accessibility through reduced aisle widths, particularly appealing to high-value property markets where warehouse-footprint costs command premium pricing.
E-commerce fulfilment centres, particularly those operated by major retailers and quick-commerce platforms that require rapid order processing across concentrated geographic areas, are increasingly adopting narrow-aisle configurations to maximise vertical space utilisation within constrained urban real estate.
Third-party logistics operators captured 34.1% of the Industrial Racking Market's end-use segment in 2025, establishing themselves as the market's dominant user category and primary growth vector.
3PLs operate regionally distributed warehousing networks serving multiple customer bases across automotive, retail, pharmaceutical, food, and electronics sectors, requiring sophisticated multi-purpose storage infrastructure accommodating diverse product characteristics and operational requirements.
The segment's dominance reflects 3PLs' strategic positioning within India's supply chain ecosystem, where manufacturers increasingly outsource logistics operations to specialised providers offering cost efficiencies and operational flexibility.
3PLs drive market consolidation toward advanced storage solutions, automation-compatible systems, and scalable infrastructure that support rapid facility configuration adjustments as customer requirements evolve.
The segment's prominence creates influence over racking system design evolution, as 3PLs prioritise standardisation, modular design, and technology integration, enabling efficient multi-customer operations within shared warehouse footprints. Government initiatives emphasising logistics modernisation and the National Logistics Policy create policy tailwinds that support 3PL sector expansion, directly translating into sustained demand for the Industrial Racking Market.
E-commerce platforms represent the fastest-growing end-use segment in the industrial racking market, capitalising on explosive sector expansion and unprecedented warehousing infrastructure requirements.
E-commerce platforms leased 4.5 million square feet during H1 2025, representing 25% of total warehousing activity, with Q3 2025 demonstrating 137% year-on-year growth compared to prior year periods.
Quick commerce platforms, subscription-based e-commerce services, and tier II/III city fulfilment operations are driving geographic expansion and multiplying warehouse footprints, requiring substantial racking system investments across facility types and product categories.
India industrial racking market presents a mixed competitive landscape, where the organised segment is moderately oligopolistic, led by major global and domestic companies, while the broader market remains highly fragmented due to numerous regional manufacturers.
Key players such as Godrej Group, Daifuku Co., Ltd., SSI Schaefer, Jungheinrich AG, Kardex AG, and Nilkamal Material Handling capture a dominant share in high-performance racking and automated storage systems. These companies leverage strong engineering capabilities, integrated intralogistics solutions, and large manufacturing footprints to maintain competitive strength.
Players such as Storewel Racking & Shelvings and Delta Storage Systems support cost-driven demand across tier-2 and tier-3 markets. Overall, the market is shaped by differentiation in quality, automation readiness, and nationwide service networks.
India industrial racking market is projected to be valued at US$ 661.5 Million in 2025.
The selective racking segment is expected to account for approximately 19.2% of the India Industrial Racking Market by Design in 2025.
India industrial racking market is expected to witness a CAGR of 9.3% from 2025 to 2032.
Rapid e-commerce expansion, large-scale manufacturing growth, and accelerating warehouse automation collectively drive the Industrial Racking Market’s sustained growth.
Modernised logistics infrastructure development and rapid 3PL expansion across emerging warehousing hubs create strong opportunities for advanced, high-density, and automation-compatible racking systems in the India Industrial Racking Market.
The leading India players in the Industrial Racking market include Godrej Group, Daifuku Co., Ltd., SSI Schaefer, Jungheinrich AG, Kardex AG, and Nilkamal Material Handling.
| Report Attribute | Details |
|---|---|
| Forecast Period | 2025 to 2032 |
| Historical Data Available for | 2019 to 2024 |
| Market Analysis | USD Million for Value |
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| Key Companies Covered |
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By Design
By Carrying Capacity
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By End-user
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