Green Logistics Market Report 2026

The green logistics market size has grown strongly in recent years. It will grow from $1.38 trillion in 2025 to $1.49 trillion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to environmental regulations, rising fuel costs, corporate sustainability initiatives, growth of global trade, increasing logistics efficiency requirements.

The green logistics market size is expected to see strong growth in the next few years. It will grow to $1.96 trillion in 2030 at a compound annual growth rate (CAGR) of 7.1%. The growth in the forecast period can be attributed to net zero emission targets, electrification of logistics fleets, demand for sustainable supply chains, growth of e commerce logistics, regulatory pressure on emissions. Major trends in the forecast period include increasing adoption of sustainable transportation, rising use of eco friendly packaging solutions, expansion of energy efficient warehousing, growing focus on carbon footprint reduction, integration of green supply chain analytics.

The rising adoption of electric vehicles (EVs) is expected to drive growth in the green logistics market. EVs are powered by electricity stored in rechargeable batteries or other energy storage systems. Their adoption is fueled by increasing environmental awareness, government incentives, advancements in battery technology, and the growing demand for sustainable transportation solutions. EVs contribute to green logistics by reducing carbon emissions, improving energy efficiency, and supporting sustainability goals. For instance, in July 2023, according to the International Energy Agency, over 2.3 million electric cars were sold in the first quarter of 2023, a 25% increase compared with the same period in 2022. By the end of 2023, global EV sales were projected to reach 14 million, representing a 35% year-on-year increase, with growth accelerating in the latter half of the year. Therefore, the rise in EV adoption is boosting the green logistics market.

Key companies in the green logistics market are focusing on innovative solutions such as sustainable-fuel-powered and electric freight vehicles to reduce transport emissions and enhance operational sustainability. These vehicles operate on low-carbon fuels, such as biofuels or hydrogen, or electricity, cutting emissions, lowering fuel costs, and improving energy efficiency. For example, in November 2023, DHL Supply Chain, a Germany-based logistics company, launched its Green Transport Policy. The initiative aims to replace or convert around 2,000 vehicles to greener alternatives, including hydrotreated vegetable oil (HVO), biogas, electric, and hydrogen-powered trucks, representing a $233.18 million (€200 million) investment over three years and targeting a reduction of nearly 300,000 tonnes of CO₂ emissions. HVO is a renewable diesel made from waste fats or vegetable oils that offers similar performance to conventional diesel with lower lifecycle emissions, while electric and hydrogen trucks provide zero tailpipe emissions and higher energy efficiency.

In May 2025, Carrier Global Corporation, a US-based provider of intelligent climate and energy solutions, acquired Addvolt, S.A., a Portugal-based transport electrification technology company, for an undisclosed amount. The acquisition strengthens Carrier’s electrification strategy, expands electric solutions for refrigerated transport, and drives innovation in low-emission logistics. Addvolt develops patented, non-invasive, low-maintenance electric systems for refrigerated vans, trucks, trailers, and containers.

Major companies operating in the green logistics market report include Deutsche Post AG, United Parcel Service of America Inc, CEVA Logistics, Fujitsu Limited, FedEx Corporation, Bollore Logistics, GEODIS Yusen Logistics, XPO Logistics, YUSEN LOGISTICS CO. LTD, Agility Public Warehousing KSCP, Mahindra Logistics Ltd, KLG Europe, 20 cube Logistics Pte Ltd, Transervice Logistics Inc, DSV A/S, AI Futtaim Logistics, Hupac Group, Express Freight Management, Go Green Logistics, Peter Green Chilled, The Green Group, Westerman MultiModal Logistics, EcoTransIT World, Clean Cargo Working Group.

Asia-Pacific was the largest region in the green logistics market in 2025. The regions covered in the green logistics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the green logistics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The green logistics market includes revenues earned by entities such as sustainable transportation solutions, carbon footprint analysis and reporting services, eco-friendly packaging design and optimization, supply chain optimization for environmental efficiency, and renewable energy integration for logistics operations related to supplier selection, packaging materials, transportation efficiency, and continuous improvement. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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