Global Green Logistics Market Forecast 2024-2032

Global Green Logistics Market Forecast 2024-2032

The global green logistics market size was $1260.99 million in 2023 and is expected to reach $2530.80 million by 2032, growing at a CAGR of 7.99% during the forecast period. The base year considered for the study is 2023, and the estimated period is between 2024 and 2032.

The green logistics industry is experiencing significant growth as environmental concerns and sustainability practices become integral to supply chain management. Green logistics involves the adoption of eco-friendly methods to reduce the environmental impact of transportation and distribution activities. Green logistics companies are at the forefront of this transformation, implementing innovative solutions to minimize carbon emissions and enhance energy efficiency.

Green logistics practices include adopting energy-efficient transportation modes, utilizing recyclable packaging materials, and implementing waste reduction strategies. These practices are crucial in the logistics sector’s transition towards sustainability. Aligning with this, green logistics transportation focuses on using alternative fuels and electric vehicles, in addition to optimizing routes to reduce fuel consumption and emissions.

Recent green logistics news highlights advancements in sustainable supply chain practices. For instance, Go Green Logistics emphasizes the importance of carbon footprint reduction through the use of renewable energy sources and efficient resource management. Additionally, the incorporation of green logistics services is becoming a standard among leading logistics companies, reflecting a broader commitment to environmental stewardship.

In terms of financial impact, understanding how much does logistics make in the green sector is essential; the profitability of green logistics ventures often hinges on long-term savings from reduced energy consumption and compliance with environmental regulations, which can offset initial investments in green technologies. Accordingly, green logistics examples abound, illustrating the practical application of sustainable logistics principles.

Companies like Green Logistics LLC demonstrate the economic and environmental benefits of adopting green practices. By exploring what is green logistics, businesses can uncover opportunities to enhance efficiency and sustainability across their supply chains. The growth of the green logistics market signifies a paradigm shift towards more sustainable, efficient, and environmentally friendly logistics solutions. As more companies embrace these practices, the industry is poised for continued expansion, driven by innovation and a commitment to protecting the planet.

MARKET INSIGHTS

Key enablers of the global green logistics market growth:
• Integration and advancement of artificial intelligence technologies

The green logistics market is growing due to the increasing use of artificial intelligence (AI) technologies like machine learning, data analytics, and automation.

AI enhances logistics operations, reduces resource usage, and improves efficiency by optimizing route planning, load consolidation, and inventory management.

AI-powered tools, such as carbon emission trackers, help companies achieve sustainability goals. Accordingly, AI use in logistics is expected to grow significantly by 2025, with 55% of businesses already integrating the same.
• Strict environmental regulations and sustainable practices
• Amplifying CSR efforts by the logistics companies
• Rising EV adoption in the logistics industry

Key growth restraining factors of the global green logistics market growth:
• High cost of green procurement

The high cost of green procurement challenges the growth of the green logistics market. While transitioning to eco-friendly vehicles and renewable energy solutions requires substantial upfront capital, operational costs for eco-friendly materials, equipment, and services are higher.

Compliance with environmental regulations and obtaining necessary certifications add to the expenses, as well. Restructuring supply chains and establishing partnerships with eco-friendly suppliers can also be costly. Moreover, limited economies of scale and perceived risks further increase costs.
• Lack of infrastructure
• Dependency on fossil fuels for transportation

Green Logistics Market | Top Trends
• Companies are adopting green logistics to gain a competitive edge and meet market demand by reducing environmental impacts. Governments are enforcing regulations on emissions and waste management, pushing businesses to implement green practices. This enhances brand image, attracts investment, and influences consumer preferences for eco-friendly products.
• Green logistics management helps companies reduce environmental damage, conserve resources, and manage waste while boosting profitability. Companies offering sustainable products and services attract high-paying customers and can charge premiums. By integrating green logistics into business strategies, companies gain market share and improve brand image.
• The development of intelligent warehousing is driven by multi-channel distribution, green initiatives, and waste reduction efforts. Sustainable storage benefits businesses and the environment by reducing energy consumption and promoting renewable energy. Moreover, the demand for green warehouses is expected to grow significantly as compliance with standards like BREEAM and LEED continues to gain prominence. New technologies and solutions, like Infor WMS and Manhattan Active Yard Management, are enhancing warehouse efficiency and customer service.

SEGMENTATION ANALYSIS

Market Segmentation Analysis – Organization Size, Supply Chain Process, and End-User Industry

Market by Organization Size:
• Large Enterprises

The large enterprises segment, under the organization size category, recorded a significant market share of 71.73% in 2023.

Large enterprises, like DHL, UPS, FedEx, and Maersk, lead in green logistics through investments in advanced technologies such as electric vehicles and automated warehousing. They influence global supply chains to adopt sustainable practices and often pursue ISO 14001 certification, as well.

With dedicated sustainability budgets, these companies drive industry standards and engage in global sustainability efforts, promoting extensive employee training and contributing to significant environmental impact.
• Small and Medium Enterprises (SMEs)

Market by Supply Chain Process:
• Transportation and Logistics

Logistical Direction

 Outbound Logistics

 Inbound Logistics

Modes of Operation

 Roadways

 Seaways

 Air

 Rail

 Intermodal

 Other Modes of Operations
• Warehousing
• Disposal and Reverse Logistics
• Value-Added Services
• Packaging

Market by End-User Industry:
• Retail and Consumer Goods
• Semiconductor and Electronics

In the semiconductor and electronics industry, companies like Apple and Samsung are pushing for green logistics by using renewable energy, advanced logistics software, and circular economy principles. They focus on reducing carbon footprints, managing waste, and refurbishing components.

Additionally, the industry aims to lower energy consumption in data centers and logistics hubs, invest in green manufacturing, and develop energy-efficient equipment like renewable energy-powered AGVs.
• Automotive
• Energy and Utilities
• Manufacturing
• Chemical and Materials
• Healthcare
• Farming and Agriculture
• Other End-User Industries

REGIONAL ANALYSIS

Geographical Study based on Four Major Regions:
• North America: The United States and Canada
• Europe: The United Kingdom, Germany, France, Italy, Spain, Belgium, the Netherlands, Sweden, and Rest of Europe
• Asia-Pacific: China, Japan, India, South Korea, Australia & New Zealand, Singapore, Malaysia, and Rest of Asia-Pacific

The Asia-Pacific green logistics market is forecasted to grow with the highest CAGR of 10.25% during the projection period, 2024 to 2032.

The region’s rapid economic growth and urbanization have increased logistics activities, necessitating green logistics solutions to mitigate environmental impact. Countries like China and India have introduced policies and incentives for eco-friendly vehicles and sustainable infrastructure, driving companies to adopt greener practices.

However, inadequate infrastructure, such as poor road networks, limited rail connectivity, and diverse regulations across countries pose challenges to implementing sustainable logistics. Also, the lack of standardization and cross-border collaboration further hinders the widespread adoption of green logistics in the region.
• Rest of World: Latin America, and the Middle East & Africa

Our market research reports offer an in-depth analysis of individual country-level market size and growth statistics. We cover the segmentation analysis, key growth factors, and macro-economic trends within the green logistics market, providing detailed insights into –
• Sweden Green Logistics Market
• United Kingdom Green Logistics Market
• India Green Logistics Market
• Singapore Green Logistics Market

COMPETITIVE INSIGHTS

Major players in the global green logistics market:
• Agility logistics
• CEVA logistics
• Deutsche post DHL group
• DSV
• FedEx
• Go Green Logistics
• Kuehne + Nagel
• United Parcel Service (UPS)
• XPO Logistics
• Yusen Logistics Co

Key strategies adopted by some of these companies:
• In May 2024, Yusen Logistics successfully completed its acquisition of Parts Express BV, a renowned company specializing in day and night distribution services for automotive parts in the Benelux countries. Additionally, Yusen Logistics introduced a hydrogen fuel cell truck to enhance supply chain sustainability for the Pan-China group of Murata (China) Investment Co Ltd, a marketing and administrative company of Murata Manufacturing Co Ltd.
• In April 2024, DHL Global Forwarding announced the Prada Group’s first investment in Sustainable Aviation Fuel (SAF) credits through DHL Global Forwarding’s GoGreen Plus service. By utilizing sustainable fuels, DHL Global Forwarding helps customers significantly reduce their air freight transport emissions.

Frequently Asked Questions (FAQs):
• What is the estimated market revenue value expected for the green logistics market?

A: The green logistics market is anticipated to generate a revenue of $2530.80 billion in 2032.
• Which is the fastest-growing green logistics supply chain process?

A: Value-added services is anticipated to be the fastest-growing green logistics supply chain process during the forecast period.
• Why is green logistics important?

A: Green logistics is important for reducing carbon emissions, minimizing resource usage, and mitigating environmental impact in the transportation and logistics industry. It also helps address climate change, comply with regulations, meet consumer demand for sustainable products, and improve corporate social responsibility (CSR) initiatives.
• How does green logistics benefit companies?

A: Green logistics benefits companies by reducing operational costs through energy savings and efficiency improvements, enhancing brand reputation and customer loyalty, complying with environmental regulations, attracting environmentally conscious consumers, and creating competitive advantages in the market.