Global Green Logistics Market Size, Share & Trends Analysis Report By Mode of Transportation, By Business Type (Warehousing, Distribution, and Value added services), By End-use, By Regional Outlook and Forecast, 2024 - 2031

The Global Green Logistics Market size is expected to reach $2505.92 billion by 2031, rising at a market growth of 7.8% CAGR during the forecast period.

To meet sustainability goals, automakers invest in low-emission freight transportation, hydrogen-powered shipping, and AI-driven supply chain optimization. The rise of zero-emission vehicle manufacturing plants, responsible material sourcing, and carbon-neutral supply chain strategies has further fueled the shift toward eco-friendly automotive logistics. Hence, the automotive segment procured 16% revenue share in the market in 2023. Additionally, government incentives promoting sustainable transportation and carbon reduction policies push automotive companies to integrate green logistics solutions into their global operations.

Hydrogen fuel cell technology is another promising innovation, especially for long-haul transportation. Unlike battery-electric vehicles, which require frequent recharging, hydrogen-powered trucks can refuel quickly and provide longer driving ranges, making them a viable alternative for logistics companies looking to maintain efficiency without compromising sustainability. Governments and private enterprises are investing in hydrogen refueling infrastructure, further encouraging freight and cargo transport adoption. Beyond vehicle transitions, fuel-efficient logistics strategies such as route optimization, load consolidation, and smart fleet management are becoming industry standards. Additionally, the rise in e-commerce has also increased product returns, making reverse logistics a critical component of the supply chain. Efficient return management through sustainable practices, such as refurbishing and reselling products, helps reduce waste and recover value. Companies can achieve cost reductions and contribute to environmental sustainability by incorporating eco-friendly measures into reverse logistics, which is consistent with global initiatives to promote responsible consumption and production. Thus, these factors support the overall growth of the market.

However, Small and medium-sized logistics firms face greater financial constraints as they lack the financial reserves or access to large-scale funding that major corporations often have. Without sufficient government incentives, subsidies, or low-interest financing options, these companies struggle to transition to eco-friendly logistics models. As a result, they may continue relying on traditional, less sustainable practices despite increasing environmental concerns and regulatory pressures. Hence, the transition to green logistics solutions demands significant capital investment, making it a major challenge for businesses aiming to adopt sustainable practices.

Business Type Outlook

Based on business type, the market is classified into warehousing, distribution, and value-added services. The distribution segment procured 33% revenue share in the market in 2023. The distribution segment is propelled by the increasing need for sustainable transportation solutions and the push for low-carbon last-mile delivery systems. The adoption of electric trucks, hybrid delivery vehicles, and alternative fuel fleets is gaining momentum as logistics companies seek to meet carbon neutrality targets. Additionally, AI-driven route optimization, IoT-based fleet tracking, and urban micro-fulfillment centers enhance efficiency while minimizing fuel consumption and emissions. The rising consumer demand for fast yet eco-friendly deliveries has encouraged businesses to shift towards green distribution practices, such as bicycle couriers, drones, and localized distribution hubs.

Mode Of Transportation Outlook

On the basis of mode of transportation, the market is divided into roadways, railways, airways, and waterways. The airways segment recorded 7% revenue share in the market in 2023. Governments and logistics companies are investing in electrified rail networks, hydrogen-powered locomotives, and AI-based scheduling systems to optimize freight efficiency. The shift towards multimodal transportation, where railways are used for long-haul freight before switching to sustainable last-mile delivery options, further propels the segment’s expansion. Additionally, regulatory initiatives promoting green freight corridors and carbon-neutral railway infrastructure encourage businesses to leverage rail transport for sustainable logistics operations.

End-use Outlook

By end-use, the market is segmented into healthcare, manufacturing, automotive, banking & financial services, retail & e-commerce, and others. The retail & e-commerce segment witnessed 30% revenue share in the market in 2023. The retail & e-commerce segment is driven by the rapid expansion of online shopping, consumer demand for sustainable products, and the need for eco-friendly last-mile delivery solutions. Companies increasingly invest in electric delivery fleets, biodegradable packaging, and AI-driven logistics optimization to reduce their carbon footprint. The growing emphasis on fast and sustainable shipping options, such as carbon-neutral delivery programs and green warehouses, has further fueled adoption.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific segment acquired 35% revenue share in the market in 2023. Countries like China, India, and Japan are leading the adoption of electric and hydrogen-powered freight vehicles, smart logistics solutions, and carbon-neutral warehouses. Government initiatives, such as China’s carbon neutrality targets, India’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) program, and Japan’s hydrogen economy strategy, are accelerating the shift toward green logistics solutions.

Recent Strategies Deployed in the Market

• Feb-2025: Kuehne + Nagel International AG announced a partnership with Acer, a computer hardware company, to decarbonize sea shipments using biofuel, reducing tons of CO₂e over three years. Acer targets Scope 3 emissions reduction. Kuehne + Nagel supports this with data insights, emissions reporting, and sustainable logistics solutions.
• Jul-2024: Deutsche Post DHL Group announced the partnership with Envision, a leading national medical group on logistics, Sustainable Aviation Fuel (SAF), green energy, and a Net Zero Industrial & Logistic Park. Envision will supply SAF, while DHL supports Envision’s global expansion. The partnership aims to decarbonize aviation, optimize supply chains, and advance green industrial ecosystems worldwide.
• Oct-2023: United Parcel Service, Inc. acquired Happy Returns, a reverse logistics company that enables frictionless, no-box, no-label returns. This acquisition will enhance UPS’s digital solutions and expand return locations in the U.S., improving efficiency and sustainability in e-commerce returns.
• Jun-2023: Deutsche Post DHL Group teamed up with IAG Cargo, a leading provider of comprehensive, cost-effective, FAA mandated training in the Sustainable Aviation Fuel (SAF) field. As part of this collaboration, DHL has entered into a contract to acquire 11.5 million liters of SAF, contributing to reducing transport emissions categorized under Scope 3 in 2023.
• Apr-2023: Deutsche Post DHL Group unveiled a new tool to assist clients in reducing their carbon impact. The DHL GoGreen Dashboard is an emission-tracking solution for large, wide customers, providing transparency in line with established industry standards such as the Global Logistics Emissions Council (GLEC) Framework.

List of Key Companies Profiled

• United Parcel Service, Inc.
• C.H. Robinson Worldwide, Inc.
• Deutsche Bahn AG (DB Schenker)
• Yusen Logistics Co., Ltd. (Nippon Yusen Kabushiki Kaisha)
• XPO, Inc.
• Kuehne + Nagel International AG (Kuehne Holding AG)
• FedEx Corporation
• DSV A/S
• Deutsche Post DHL Group (The Deutsche Post AG)
• A.P. Moller - Maersk A/S

Global Green Logistics Market Report Segmentation

By Mode of Transportation

• Roadways
• Railways
• Waterways
• Airways

By Business Type

• Warehousing
• Distribution
• Value added services

By End-use

• Retail & E-Commerce
• Manufacturing
• Automotive
• Healthcare
• Banking & financial services
• Other End-use

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA