Green Logistics Market Performance, Trends and Strategic Recommendations

Green Logistics Market Trends, Forecast and Future Potential

The green logistics market is forecast to grow at a CAGR of 8.35%, from USD 1.7 billion in 2025 to USD 3.49 billion by 2034, over the forecast period from 2025 to 2034.

Introduction

The green logistics market is a crucial segment of the logistics and transportation industry. This industry deals in providing sustainable logistics services around the world. There are several types of services provided by this sector consisting of warehousing, distribution and value-added services. There are various modes of operations in this industry comprising of storage, roadways distribution, seaways distribution and some others. The end-users of this industry consist of healthcare, manufacturing, automotive, banking and financial services, retail and e-commerce and some others. The growing development in the automotive sector has boosted the industrial expansion. This market is expected to rise significantly with the growth of the warehousing and logistics industry in different parts of the world.

• According to the India Brand Equity Foundation, the India passenger vehicle market size in 2021 was valued at US$ 32.7 billion in 2021 that increased to US$ 54.84 billion in 2027.

Highlights of the Green Logistics Market

• Asia Pacific held the dominant share of the green logistics market due to the rising government initiatives aimed at reducing CO2 emission in the environment.
• North America is expected to grow with a significant CAGR due to the growing development in the automotive sector across this region.
• The distribution segment dominated the market to enhance the capabilities of logistics operations.
• The manufacturing segment led the market due to the rising focus of manufacturing brands to enable sustainable practices.

Green Logistics: Stats and Figures

• According to the India Brand Equity Foundation, the Indian logistics market size reached US$ 107.16 billion in 2023.
• According to the International Trade Administration, the U.S. business logistics cost reached US$2.3 trillion in 2023.
• According to the Logistics UK, there were around 214160 logistics enterprises in UK during March 2023.
• According to the Trends Research and Advisory Organization, the GCC Freight and Logistics Market size was estimated at US$ 47.59 billion in 2023.

Industry Leader Announcement

On July 2024, Zhang Lei, the Chairman of Envision Group announced that,” The transportation sector, mainly sustainable fuel, represents a critical frontier in the transition to zero-carbon emissions but is currently trailing targets largely due to high costs associated with green hydrocarbons and their derivatives. Envision aims to address this cost barrier through systematic technological innovation, revolutionizing the production of SAF products, and facilitating the large-scale industrial development of this “new oil” to support global efforts towards carbon neutrality.”

Competitive Landscape

The green logistics market is a highly competitive industry with the presence of several dominating players. Some of the crucial players in this industry consists of CEVA Logistics, XPO Logistics, Inc., FedEx Corporation, DSV, Agility Public Warehousing Company K.S.C.P. and Subsidiaries, United Parcel Service of America, Inc and some others. These companies are constantly engaged in providing green-logistics solutions for the people and adopting numerous strategies to maintain their dominant position in this market.

• According to the annual report of Mahindra Logistics, the annual revenue of 2023 was Rs 5144.14 crores that increased to Rs 5523.87 crores in 2024.

Market Segments

By Business Type

• Warehousing
• Distribution
• Value Added Services

By Mode of Operation

• Storage
• Roadways Distribution
• Seaways Distribution
• Others

By End-use

• Healthcare
• Manufacturing
• Automotive
• Banking and Financial Services
• Retail and E-Commerce
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa