E-commerce firms to invest up to $8 billion in infrastructure, logistics: study

New Delhi: E-commerce companies are expected to invest about USD 6-8 billion in logistics, infrastructure and warehousing in the next few years on the back of growing popularity of online shopping in India, says a study.

As the e-commerce gathers momentum and moves to tier-II and tier-III cities, there will be increasing demand for expanding air cargo connectivity to smaller towns, an Assocham-PwC study said on June 29.

The sector is growing at a compounded annual growth rate of about 35-40 per cent and it is expected to cross the USD 100 billion mark in five years, it added.

"With the growing popularity of online shopping which is expected to catapult the e-commerce market to USD 80 billion by 2020 in India, the online companies are expected to invest close to USD 6-8 billion in logistics, infrastructure and warehousing in the next few years," it said.

Further, it said only a few airports are equipped to handle large volumes of express delivery parcels, and as the sector gathers momentum, there will be increasing demand of expanding air cargo connectivity to smaller towns.