Green Logistics Market Size (2024 - 2029)

Green Logistics Market Analysis

The Green Logistics Market size is estimated at USD 1.28 trillion in 2024, and is expected to reach USD 1.91 trillion by 2029, growing at a CAGR of 8.29% during the forecast period (2024-2029).

The growth of the green logistics market is stimulated by factors such as increased corporate social responsibility (CSR) activities undertaken by logistics undertakings, growing EV adoption in the transport sector, rising environmental legislation, and increasing use of artificial intelligence in the global supply chain.

Alternative fuels, such as hybrid electric and biodiesel vehicles, are increasingly used by companies like UPS, DHL, or FedEx. Efficient storage and packaging help reduce the amount of materials used and single-use plastic containers. Reusable containers, which help to reduce waste and costs related to packaging disposal, are a further strategy.

Businesses are increasingly switching to electric vehicles to meet these evolving delivery needs. EV fleets have lower operating costs and less disruption than gas or diesel vehicles, at half the price of electricity per mile and no need for repairs or oil changes.

In 2022, almost 66,000 electrical buses and 60,000 medium and heavier trucks were sold worldwide, about 4.5% of all buses and 1.2 % of truck sales.

To address environmental challenges, China, as the largest economy in the Asia Pacific region, is actively promoting green logistics practices. Investments in electric vehicles, clean energy sources, and intelligent transport systems have been made in the country. Japan, which has been known to embrace green technologies, particularly hybrids and electric vehicles, is now seeing the adoption of sustainable fuels by logistics companies.

In 2022, China sold 54,000 new EV buses and is expected to sell approximately 52,000 M&H trucks, accounting for 18% or 4% of all sales in the country and around 85 % worldwide. Moreover, many buses and trucks are made by China's brands in Latin America, North America, and Europe.

For example, Yusen Logistics Co. Ltd launched a new service in April 2023 called "Yuksen Book & Claim," which uses sustainable aviation fuel and enables its customers to grow sustainably using air freight forwarding.

Green Logistics Industry Segmentation

Green logistics refers to applying sustainable practices within supply chain management to reduce the negative environmental impact of logistics activities. It incorporates eco-friendly transport solutions, optimized route planning, energy-efficient warehousing, and waste management techniques.

A complete background analysis of the green logistics market, which includes an assessment of the sector and the contribution of the industry to the economy, market overview, market size estimation for critical segments, key regions, and emerging trends in the market segments, market dynamics, and essential production and consumption statistics are covered in the report.

The green logistics market is segmented by end-user (healthcare, manufacturing, automotive, banking and financial services, retail and e-commerce, and others), by business type (warehousing, distribution, and value-added services), by mode of operation (storage, roadways distribution, seaways distribution, and others) and by region (North America, Europe, Asia-Pacific, and LAMEA). The report offers market size and forecasts for the green logistics market in value (USD) for all the above segments.