What are the Historical Developments and Current Growth Metrics of the Green Logistics Market?
The green logistics market has seen considerable growth due to a variety of factors.
• The market size of green logistics has been experiencing a robust growth rate in the past few years. The market is projected to expand from $1290.66 billion in 2024 to $1395.09 billion in 2025, encountering a compound annual growth rate (CAGR) of 8.1%.
The expansion during the historic period can be associated with factors such as the implementation of environmental regulations and legislation, corporate social responsibility (CSR) activities, escalating fuel costs, concerns over energy efficiency, increasing consumer demand for ecologically sustainable products, as well as supply chain robustness and risk management measures.
What Does Future Hold for The Green Logistics Market By 2029?
The green logistics market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for a robust growth in the green logistics market size over the next few years. The market is projected to reach $1884.35 billion by 2029, projecting a compound annual growth rate (CAGR) of 7.8%.
This anticipated growth during the forecast period could be credited to a variety of factors such as governmental policies and regulations, advances in green transportation technology, increased levels of consumer awareness and demand, corporate sustainability pledges, escalating fuel prices, and carbon taxes. Noteworthy trends to look forward to in the forecast period consist of the integration of artificial intelligence and machine learning, the extension of electric and alternate fuel vehicle use, the utilization of blockchain technology for increased transparency, the emergence of circular economy procedures, and an emphasis on collaboration and partnerships.
What Are The Primary Growth Drivers In The Green Logistics Market?
The green logistics market's expansion is anticipated to be bolstered by the growing acceptance of Electric Vehicles (EVs). These vehicles are propelled by electricity accumulated in rechargeable batteries or other energy storage entities, and their increasing popularity is due to heightened environmental consciousness, governmental incentives, battery technology advances, and a surging demand for eco-friendly transportation solutions. EVs have a significant impact on green initiatives as they lower carbon emissions, enhance energy efficiency, and are in line with sustainability objectives. The Internal Energy Agency, an autonomous organization hailing from France, reported in July 2023 that over 2.3 million EVs were sold in the initial 2023 quarter, marking a 25% hike from the same 2022 span. Sales projections put the total at 14 million by the close of 2023, signifying a 35% annual growth, with the uptake expected to surge during the year's latter half. Consequently, the green logistics market's growth is being spearheaded by the escalating adoption of EVs.
What Is The Segmentation Of The Global Green Logistics Market?
The green logistics market covered in this report is segmented –
1) By Service Type: Value Added Services, Warehousing, Distribution, Transportation, Reverse Logistics, Packaging
2) By Mode of Operations: Storage, Roadways Distribution, Seaways Distribution, Other Mode Of Operations
3) By Organization Size: Large Enterprises, Small and Medium Enterprise
4) By Industry: Retail Consumer Goods, Semiconductor and Electronics, Chemical and Material, Automotive, Energy and Utilities, Farming and Agriculture, Other Industries
Subsegments:
1) By Value Added Services: Inventory Management, Supply Chain Optimization, Freight Forwarding
2) By Warehousing: Sustainable Warehouse Design, Energy-Efficient Warehouse Operations, Automated Warehousing Systems
3) By Distribution: Eco-Friendly Distribution Centers, Sustainable Last-Mile Delivery Solutions, Green Distribution Networks
4) By Transportation: Electric And Hybrid Vehicle Fleet, Eco-Friendly Freight Shipping, Sustainable Transport Networks
5) By Reverse Logistics: Product Returns Management, Recycling And Reuse Of Products, E-Waste Management
6) By Packaging: Eco-Friendly Packaging Materials, Recyclable And Biodegradable Packaging, Packaging Optimization And Reduction
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Which Emerging Market Trends Are Altering The Green Logistics Industry?
Key firms in the green logistics market, such as DispatchTrack Software Pvt. Ltd., are leveraging developments like AI-enabled carbon emission measurement systems to align with their objectives regarding supply chain sustainability. These AI-enabled carbon emissions represent the environmental effect of using artificial intelligence technologies in terms of their influence on carbon emissions and energy use. In October 2022, DispatchTrack, a U.S. web-based delivery and logistics management platform, introduced their AI-Fueled CO2 tracking system. This advanced system is designed to assist companies in achieving their sustainability objectives by offering real-time carbon emission tracking and optimization. The system enables businesses to analyze their carbon emissions based on per route, per stop, and per vehicle while devising strategies to minimize CO2 emissions and to visualize the outcome of their sustainability actions. Using AI, DispatchTrack’s route optimization engine dwells on green delivery alternatives using optimal paths with fewer miles covered and minimal fuel usage, thus significantly reducing the fuel usage of last-mile delivery companies by a minimum of 10%.
Who Are the Key Players In The Green Logistics Market?
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
What Are The Regional Insights Into The Green Logistics Market?
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.
