Green Logistics

Global Green Logistics Market to Reach US$1.9 Trillion by 2030

The global market for Green Logistics estimated at US$1.2 Trillion in the year 2024, is expected to reach US$1.9 Trillion by 2030, growing at a CAGR of 7.4% over the analysis period 2024-2030. Solutions Component, one of the segments analyzed in the report, is expected to record a 6.1% CAGR and reach US$1.2 Trillion by the end of the analysis period. Growth in the Service Component segment is estimated at 9.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$335.7 Billion While China is Forecast to Grow at 11.4% CAGR

The Green Logistics market in the U.S. is estimated at US$335.7 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$395.5 Billion by the year 2030 trailing a CAGR of 11.4% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 3.8% and 7.1% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 4.9% CAGR.

Global Green Logistics Market – Key Trends & Drivers Summarized

The green logistics market is witnessing rapid growth as businesses and governments worldwide prioritize carbon-neutral supply chain solutions. Traditional logistics operations contribute significantly to greenhouse gas emissions due to fuel consumption, inefficient transportation, and excessive packaging waste. In response, companies are adopting eco-friendly logistics practices, including electric and hydrogen-powered fleets, optimized routing algorithms, and sustainable packaging solutions. The rise of e-commerce, urban deliveries, and global trade has further accelerated the need for green logistics innovations, with industry players investing in renewable energy sources, carbon offset programs, and digitalized supply chain management.

One of the most significant trends in the green logistics sector is the shift toward electrification and alternative fuels. Logistics providers are transitioning to electric trucks, biofuel-powered fleets, and hydrogen fuel cell vehicles to reduce emissions in last-mile and long-haul transportation. Additionally, the adoption of smart logistics solutions, such as AI-driven route optimization and Internet of Things (IoT)-enabled fleet monitoring, is helping companies minimize fuel consumption and enhance efficiency. As regulations on carbon emissions tighten across major markets, logistics companies are proactively integrating sustainable practices to meet compliance standards and improve their corporate environmental footprint.

How Are Companies Adopting Green Logistics Strategies?

Businesses across various industries are prioritizing green logistics to align with sustainability goals and consumer expectations. Retail and e-commerce giants are implementing eco-friendly supply chain solutions, such as electric delivery vehicles, warehouse automation, and carbon-neutral shipping options. The demand for sustainable packaging materials, including biodegradable and recyclable alternatives, is also rising, reducing the environmental impact of packaging waste. Additionally, companies are leveraging AI-powered logistics software to optimize load capacities, reduce empty miles, and improve supply chain transparency.

The manufacturing and distribution sectors are also investing in green warehousing initiatives, incorporating energy-efficient lighting, renewable energy-powered facilities, and smart inventory management systems. The increasing adoption of blockchain technology for sustainable supply chain tracking further enhances accountability, enabling businesses to verify their carbon footprint and optimize logistics operations for sustainability. With growing pressure from regulatory bodies and environmentally conscious consumers, companies are actively adopting green logistics solutions to remain competitive and responsible.

What Are the Latest Innovations & Trends in Green Logistics?

Several innovations are reshaping the green logistics industry, with technological advancements playing a crucial role in sustainability. One of the most promising developments is the expansion of autonomous and electric vehicle fleets, reducing reliance on fossil fuels and improving efficiency. Companies are exploring drone deliveries and electric cargo bikes for last-mile logistics to minimize urban congestion and emissions. Additionally, renewable energy-powered supply chain hubs and carbon-neutral shipping options are gaining traction, enhancing overall sustainability in logistics operations.

Another key trend is the rise of circular logistics models, emphasizing the reuse and recycling of materials within supply chains. Companies are implementing reverse logistics programs to facilitate product returns, refurbishments, and recycling initiatives, reducing waste generation. The integration of AI, big data analytics, and machine learning in supply chain management is further optimizing logistics efficiency, lowering costs, and reducing environmental impact.

What Is Driving the Growth of the Green Logistics Market?

The growth in the green logistics market is driven by several factors, including rising environmental regulations, technological advancements, and shifting consumer preferences toward sustainable supply chains. Governments worldwide are imposing strict carbon emission targets on transportation and logistics providers, compelling businesses to invest in green logistics solutions. Additionally, corporate sustainability commitments and ESG (Environmental, Social, and Governance) initiatives are pushing companies to adopt carbon-neutral logistics practices.

The increasing adoption of electric and alternative-fuel vehicles, AI-driven logistics optimization, and sustainable packaging solutions are also major growth drivers. Moreover, the rapid expansion of e-commerce and last-mile delivery services has created a demand for greener, more efficient logistics models. With continued advancements in renewable energy, smart logistics technologies, and eco-friendly transportation methods, the green logistics market is set for significant growth, transforming the future of sustainable supply chains.

SCOPE OF STUDY:

The report analyzes the Green Logistics market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Solutions Component, Service Component); Mode (Road Mode, Rail Mode, Sea Mode, Air Mode, Intermodal Mode); End-Use (Retail & E-Commerce End-Use, Manufacturing End-Use, Healthcare End-Use, Automotive End-Use, Agriculture End-Use, Food & Beverage, Other End-Use)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• A.P. Moller – Maersk
• Amazon
• CEVA Logistics
• DHL Supply Chain
• Dimerco
• DSV Panalpina
• FedEx
• Freightera Logistics
• Green Cargo
• Green Worldwide Shipping
• IKEA
• KION Group
• Kuehne + Nagel
• Pitt Ohio
• Rhenus Group
• RigiTech
• Schneider National
• UPS
• Velove
• XPO Logistics

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

Leading Economists - Our knowledge base tracks 14,949 economists including a select group of most influential Chief Economists of nations, think tanks, trade and industry bodies, big enterprises, and domain experts who are sharing views on the fallout of this unprecedented paradigm shift in the global econometric landscape. Most of our 16,491+ reports have incorporated this two-stage release schedule based on milestones.

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