United Kingdom Green Logistics Market Forecast 2024-2032

United Kingdom Green Logistics Market Forecast 2024-2032

The United Kingdom green logistics market is predicted to grow with a CAGR of 6.85% by 2032 and is set to reach a revenue of $86.92 million during the projection period 2024 and 2032.

MARKET INSIGHTS

The United Kingdom has achieved notable advancements in the green logistics market, propelled by government initiatives and increasing consumer demand for sustainable practices. Key cities such as London and Birmingham have introduced low-emission zones and congestion charges, encouraging logistics companies to implement cleaner transportation solutions.

Additionally, the UK government has announced a plan to ensure all new cars sold are zero-emission by 2035, with an interim target of 80% by 2030. This initiative is supported by over £2 billion in government investment and enhanced charging infrastructure, facilitating the transition to electric vehicles for both manufacturers and consumers. Moreover, the policy includes a zero-emission vehicle (ZEV) mandate and various incentives to lower costs for EV owners. This strategy aligns with the UK’s broader objective of reducing carbon emissions and fostering economic growth through investment in green technology.

British logistics giants like Wincanton and Kuehne + Nagel have adopted green logistics strategies, investing in electric and hybrid delivery vehicles, optimizing transportation routes, and implementing eco-friendly packaging solutions. Companies such as DPD and Hermes have partnered with electric vehicle manufacturers as well, to electrify their last-mile delivery fleets, thereby reducing emissions in urban areas.

Further, the United Kingdom government has provided financial incentives and subsidies to promote the adoption of alternative fuel vehicles and the development of sustainable logistics infrastructure, including electric vehicle charging stations and low-carbon warehousing facilities. Hence, these factors are anticipated to play a pivotal role in influencing the green logistics market expansion in the United Kingdom during the forecasted period.

SEGMENTATION ANALYSIS

The United Kingdom green logistics market segmentation includes organization size, end-user industry, and supply chain process. The end-user industry segment is further classified into retail and consumer goods, semiconductor and electronics, automotive, energy and utilities, manufacturing, chemical and materials, healthcare, farming and agriculture, and other end-user industries.

In the semiconductor and electronics industry, the shift towards green logistics is driven by the imperative to manage complex supply chains sustainably. Leading companies like Apple and Samsung are actively working to reduce the carbon footprint of their logistics operations. This includes leveraging renewable energy sources for their manufacturing and distribution centers and employing advanced logistics software to streamline operations.

Beyond renewable energy and recycling initiatives, the industry is focused on lowering the energy consumption of data centers and logistics hubs. Investments are also being made in green manufacturing processes, which involve using less harmful chemicals and minimizing water usage. Additionally, companies are developing more energy-efficient logistics equipment, such as automated guided vehicles (AGVs) powered by renewable energy, to further decrease their carbon footprint. This comprehensive approach not only supports environmental sustainability but also enhances operational efficiency and resilience within the semiconductor and electronics sector.

COMPETITIVE INSIGHTS

Major companies operating in the United Kingdom green logistics market are DSV, FedEx, Geodis, KLG Europe, Kuehne + Nagel, etc.

Kuehne + Nagel, headquartered in the United Kingdom, is engaged in contract logistics, overland businesses, air freight forwarding, and sea freight services, catering to clients worldwide. With a presence in over 109 countries and offices in 1,395 locations globally, it stands as the premier sea freight forwarding firm. The company serves diverse sectors, including pharmaceuticals and healthcare, retail, automotive, oil and gas, aerospace, industrial, and fast-moving consumer goods.

Specializing in sophisticated, end-to-end supply chain solutions through an integrated global network, the company enhances supply chain efficiency and transparency. By improving the information flow between customers and partners with advanced logistics control towers and integrated logistics solutions, it supports its clients’ value chains, thereby providing a significant competitive edge.