Green Logistics Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The green logistics market size has grown strongly in recent years. It will grow from $1.29 trillion in 2024 to $1.39 trillion in 2025 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to environmental regulations and legislation, corporate social responsibility (CSR) initiatives, rising fuel costs and energy efficiency concerns, growing consumer demand for sustainable products, supply chain resilience and risk management.

The green logistics market size is expected to see strong growth in the next few years. It will grow to $1.88 trillion in 2029 at a compound annual growth rate (CAGR) of 7.8%. The growth in the forecast period can be attributed to government policies and regulations, technological advancements in green transportation, increasing consumer awareness and demand, corporate sustainability commitments, rising fuel prices and carbon taxes. Major trends in the forecast period include integration of artificial intelligence and machine learning, expansion of electric and alternative fuel vehicles, adoption of blockchain technology for transparency, development of circular economy practices, emphasis on collaboration and partnerships.

The increasing adoption of electric vehicles (EVs) is expected to drive the growth of the green logistics market. An electric vehicle (EV) is a mode of transportation powered by electricity stored in rechargeable batteries or other energy storage devices. The shift toward electric vehicles is fueled by rising environmental awareness, government incentives, advancements in battery technology, and a growing demand for sustainable transportation options. EVs play a significant role in green initiatives by reducing carbon emissions, enhancing energy efficiency, and supporting sustainability goals. For example, in July 2023, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that over 2.3 million electric cars were sold in the first quarter of 2023, marking a 25% increase from the same period in 2022. By the end of 2023, sales are projected to reach 14 million, representing a 35% year-on-year growth, with acceleration expected in the latter half of the year. As a result, the rise in EV adoption is contributing to the expansion of the green logistics market.

Key players in the green logistics sector are directing their efforts toward innovative technological advancements, such as AI-powered carbon emission trackers, to assist companies in achieving their supply chain sustainability objectives. AI-powered carbon emissions tracking involves assessing the environmental impact of artificial intelligence technologies on carbon emissions and energy consumption. For instance, in October 2022, DispatchTrack Software Pvt. Ltd. unveiled its AI-Powered CO2 tracking system. This cutting-edge solution aids companies in meeting their supply chain sustainability targets by delivering real-time carbon emissions measurement and optimization capabilities. By leveraging AI technology, DispatchTrack enables companies to comprehend their carbon output at various levels - per-route, per-stop, and per-vehicle - optimize routes to reduce CO2 emissions, and visualize the outcomes of their sustainability initiatives. The platform's route optimization engine identifies environmentally friendly delivery options, ultimately leading to a reduction in fuel consumption by at least 10% for last-mile delivery firms.

In August 2022, Maersk, a Denmark-based shipping and logistics giant, completed the acquisition of LF Logistics, a Hong Kong-based contract logistics firm specializing in green logistics services. This strategic move aims to bolster Maersk's capabilities, broaden its market reach, support end-to-end supply chain requirements, forge strategic alliances, and extend its global footprint, reflecting the company's commitment to sustainable practices and growth in the green logistics sector.

Major companies operating in the green logistics market are 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, Green Mountain Energy Company.

Asia-Pacific was the largest region in the green logistics market in 2024. The regions covered in the green logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the green logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, 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).

Green logistics involves the adoption of sustainable practices within logistics operations to mitigate environmental impact. This encompasses optimizing storage capacity, minimizing transport activities, employing eco-friendly packaging, and evaluating the environmental footprint across the entire supply chain. The primary goal of green logistics is to harmonize economic efficiency with environmental sustainability by quantifying and reducing the ecological consequences associated with logistics operations.

The primary categories of green logistics services encompass value-added services, warehousing, distribution, transportation, reverse logistics, and packaging. Value-added services encompass supplementary offerings beyond core products or services aimed at augmenting customer satisfaction and distinguishing a company's offerings. These services operate through various modes including storage, roadways distribution, seaways distribution, and others, catering to organizations of diverse sizes such as large enterprises and small and medium enterprises (SMEs). Industries benefiting from these services span across retail consumer goods, semiconductor and electronics, chemical and material, automotive, energy and utilities, farming and agriculture, among others.

The green logistics market research report is one of a series of new reports that provides green logistics market statistics, including the green logistics industry global market size, regional shares, competitors with a green logistics market share, detailed green logistics market segments, market trends and opportunities, and any further data you may need to thrive in the green logistics industry. This green logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

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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