Green Logistics Market Size, Share, Trends, Growth and Forecast 2032

Green Logistics Industry Prospective:

The global green logistics market size was worth around USD 1,278.34 billion in 2023 and is predicted to grow to around USD 2,279.89 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.50% between 2024 and 2032.

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Green Logistics Market: Overview

Green logistics is an emerging segment of the global supply chain industry that deals with storing and transporting goods in ways that reduce environmental impact. Logistics refers to the process of managing storage, transportation, and receipt of goods. It is a critical segment of the supply chain industry and one of the largest contributors to environmental pollution. The industry relies heavily on vehicles powered by fossil fuel to transport goods from one end to another.

Furthermore, the industry is highly resource-intensive, especially in the form of packaging materials and developing a suitable storage unit powered by energy-based solutions. The growing awareness about the impact of the logistics industry on the ecosystem as well as the growing expansion of the logistics sector has created an urgent need for more sustainable solutions in the industry. These environmentally friendly alternatives in the logistics sector such as biodegradable packaging and energy-efficient warehouses pave the way for higher adoption of green logistics.

During the forecast period, the demand for sustainable alternatives to currency-used energy, packaging, and other solutions in the logistics sector will drive the market demand rate. However, one of the most significant growth barriers for the green logistics industry is the high cost of sustainable alternatives as well as the lack of large-scale government-backed regulatory policies.

Key Insights:

• As per the analysis shared by our research analyst, the global green logistics market is estimated to grow annually at a CAGR of around 7.50% over the forecast period (2024-2032)
• In terms of revenue, the global green logistics market size was valued at around USD 1,278.34 billion in 2023 and is projected to reach USD 2,279.89 billion by 2032.
• The green logistics market is projected to grow at a significant rate due to the increasing expansion of the e-commerce industry.
• Based on the business type, the e-commerce segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on the end-user industry, the e-commerce segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Green Logistics Market: Growth Drivers

Increasing expansion of the e-commerce industry to drive market revenue during the forecast period

The global green logistics market is expected to witness higher growth during the forecast period due to the extensive expansion of the e-commerce industry.

According to market research, one of the largest contributors to the final revenue in the logistics industry is the thriving e-commerce industry. It deals with quick and on-time delivery of goods fulfilling transactions between business-to-business to business-to-customer. The e-commerce industry has managed to reshape how consumers buy and sell products by introducing online platforms that facilitate transactions and improve customer care.

The e-commerce sector is expected to continue prompting revenue in the logistics industry in the coming years as consumer expectations continue to evolve while market players also seek novel ways to generate more consumer base. Factors such as the rising number of e-commerce platforms, expansion of existing industry giants in new economies, and integration of AI-powered applications to improve overall customer experience will influence the growth rate in the global e-commerce sector.

For instance, in November 2024, Amazon, one of the world’s largest e-commerce companies, announced that it invested nearly USD 1.4 billion in the Singapore economy across other verticals including cloud and retail industries.

Worsening environmental impact of the logistics industry to create demand for greener solutions

The logistics industry is one of the largest contributors to the worsening state of environmental quality. The urgent requirement to mitigate the environmental effect of the excessive use of fossil fuel will create demand in the global green logistics sector during the forecast period. According to a recent study by the Massachusetts Institute of Technology(MIT), around 8% of total greenhouse gas emissions are caused due to the logistics sector.

Furthermore, the industry also leads to other forms of pollution such as excessive waste generation and plastic-based environmental damage. As per Sea At Risks, nearly 250 million tons of water and sewage are released into the environment by the shipping sector.

Green Logistics Market: Restraints

High cost of solutions available in the market to limit the industry’s growth rate

The global green logistics industry is projected to be restricted by the high cost of the solutions available in the market. For instance, studies indicate that biofuels, which are more environmentally sustainable compared to traditional fuel, can be 70% to 130% more expensive, depending on the feedstock used for production.

In addition, the current production rate of sustainable fuels is highly limited, further impacting the final price of the energy sources. Similarly, smart and energy-efficient warehouses and other systems used for promoting green logistics are equally expensive leading to restricted adoption.

Green Logistics Market: Opportunities

Rising launch of biodegradable packaging solutions to generate growth opportunities

The global green logistics market is expected to generate growth opportunities due to the increasing launch of environmentally friendly and biodegradable packaging solutions in the market. These innovations allow logistics companies to opt for greener alternatives to environmentally damaging plastic-based packaging.

For instance, in a recent event, DS Smith, a leading provider of sustainable packaging solutions, announced the launch of its temperature-controlled, fiber-based packaging called Tailor Temp at the PharmaPack Europe 2025 event. The product is specially designed for the biotechnology and pharmaceutical companies to achieve their sustainability goals as the packaging solutions are made using corrugated cardboard and can be recycled at a 100% rate.

Increased demand for energy-efficient warehousing solutions to create several novel growth avenues

The industry for green logistics will benefit from the increasing demand for energy-conscious warehouses designed to store all types of products. For instance, in April 2024, Rhenus Warehousing Solutions UK announced the launch of a new energy-efficient warehouse building called Rhenus Campus.

According to official reports, the campus delivers exceptionally high levels of sustainability goals and is certified as BREEAM Outstanding. Increasing pressure from the government to reduce environmental pressure in the warehousing sector will create revenue for the global green logistics market.

Green Logistics Market: Challenges

Lack of sufficient implementation policies to challenge market expansion

The global market for green logistics is expected to be challenged by the lack of sufficient government-backed implementation policies encouraging logistics companies to adopt greener solutions. Industry players continue to invest in existing solutions that contribute to disruptions in the ecosystem since they are more easily available at reduced prices. More strict actions are required from global environmental agencies and regional governments to ensure more attention is directed toward green logistics.

Green Logistics Market: Report Scope

Green Logistics Market: Segmentation

The global green logistics market is segmented based on business type, mode of operation, end-user industry, and region.

Based on the business type, the global market segments are distribution, warehousing, and value-added services. In 2023, the highest growth was listed in the distribution segment led by growth in the e-commerce industry. Furthermore, the segment deals with ever-increasing reliance on fossil fuel to power vehicles required for transporting goods. During the projection period, the warehousing segment is expected to deliver significant CAGR due to the rising focus on achieving energy efficiency. The global smart warehouse market was valued at over USD 21 billion in 2023.

Based on the mode of operation, the global green logistics industry was divided into seaway distribution, roadways distribution, storage, and others.

Based on the end-user industry, the global market segments are retail & e-commerce, healthcare, automotive, manufacturing, and others. In 2023, the highest growth was listed in the e-commerce sector. According to Allcargo Logistics, the e-commerce expenditure as a percentage of global gross domestic product (GDP) reached around 2.3% in 2020 and it is expected to grow even higher in the coming years creating more growth scope for green logistics solutions providers.

Green Logistics Market: Regional Analysis

Asia-Pacific to register the highest growth rate during the forecast period

The global green logistics market is projected to be dominated by Asia-Pacific during the forecast period. Countries such as Singapore, Japan, India, China, and South Korea are likely to drive the regional market revenue rate mainly influenced by the presence of a massive e-commerce industry. Asia-Pacific is considered one of the most lucrative markets for e-commerce giants due to the presence of a large and evolving consumer base.

However, the environmental impact of the growing regional e-commerce industry cannot be ignored creating more demand for greener logistics. In addition, government support to reduce pressure on the ecosystem to meet the demand of the logistics industry will play a crucial role in shaping the future of Asia-Pacific.

In June 2024, reports emerged suggesting that the Japanese government is expected to mandate major manufacturers in the region to use recycled plastic to promote decarbonization. In addition, the rising rate of innovation along with the development of smart warehouses and automated tools especially designed for the logistics industry will also contribute to the regional expansion trends.

Green Logistics Market: Competitive Analysis

The global green logistics market is led by players like:

• DSV Panalpina
• DHL Supply Chain
• Nippon Express
• EccoFreight
• XPO Logistics
• Geodis
• Infinium Logistics
• A.P. Moller–Maersk
• FedEx
• Rhenus Group
• DB Schenker
• CEVA Logistics
• Bolloré Logistics
• Kuehne + Nagel
• UPS

The global green logistics market is segmented as follows:

By Business Type

• Distribution
• Warehousing
• Value Added Services

By Mode of Operation

• Seaways Distribution
• Roadways Distribution
• Storage
• Others

By End-User Industry

• Retail & E-commerce
• Healthcare
• Automotive
• Manufacturing
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa