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Green Logistics Industry Set to Achieve $1846.16 Billion Milestone by 2029 | Steady 7.4% CAGR
Get 30% off global market reports with code ONLINE30 and keep ahead of tariffs, macro trends, and worldwide economic developments.What Is the Long-Term Growth Forecast for the Green Logistics Market Size 2025?
In the past few years, there has been significant growth in the size of the green logistics market. The market is predicted to expand from $1290.66 billion in 2024 to $1387.49 billion in 2025, with a compound annual growth rate (CAGR) of 7.5%. Factors such as environmental laws and regulations, initiatives for corporate social responsibility (CSR), increasing fuel prices and concerns over energy efficiency, an increase in customer demand for sustainable goods, and the robustness and risk management of the supply chain have all contributed to this historic growth period.
What CAGR is Forecasted for the Green Logistics Market Through 2029?
Anticipations reveal a solid expansion in the green logistics sector in the upcoming years. The market size is projected to escalate to $1846.16 billion by 2029, with a 7.4% compound annual growth rate (CAGR). The growth in this period is tied to several factors such as government policies and regulations, advancements in green transportation technology, rising consumer consciousness and demand, commitments towards corporate sustainability, and growth in fuel prices and carbon taxes. The anticipated period also points towards some key trends such as integration of artificial intelligence and machine learning, proliferation of electric and alternative fuel vehicles, application of blockchain technology for added transparency, circular economy practices, and a focus on partnerships and collaborations.
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What Are the Critical Factors Driving Green Logistics Market Development?
The green logistics market is projected to expand as the use of Electric Vehicles (EVs) continues to increase. EVs, which are transportation modes powered by rechargeable batteries or other energy storage devices, are gaining popularity due to heightened environmental awareness, government incentives, cutting-edge battery technology and a mounting demand for environment-friendly transportation solutions. They notably support green initiatives by reducing carbon emissions, boosting energy efficiency and adhering to sustainability objectives. To illustrate, the Internal Energy Agency, an independent organization based in France, reported that more than 2.3 million electric cars were purchased in the first quarter of 2023, a rise of 25% compared with the same period in 2022. The agency has forecasted that the figure will hit 14 million by the conclusion of 2023, marking a 35% annual increase, with the pace quickening in the later part of the year. Consequently, the growth of the green logistics market is being fuelled by the increased use of EVs.
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How Does the Green Logistics Market Break Down Across Major Segments?
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
What Are the Major Trends Transforming the Green Logistics Industry?
Key players in the green logistics market are concentrating on ground-breaking, swift technological enhancements such as carbon emission trackers powered by AI, which are intended to aid companies in fulfilling their supply chain sustainability targets. AI-powered carbon emissions imply the effects of AI technology on carbon emissions and energy usage. For instance, DispatchTrack Software Pvt. Ltd., a US digital delivery and logistics management platform, introduced an AI-Powered CO2 tracking system in October 2022. This creative system is built to support businesses in achieving their supply chain sustainability aspirations by offering real-time carbon emissions monitoring and optimization features. The AI-powered CO2 tracking function allows businesses to realize their carbon emissions on a route-by-route, stop-by-stop, and vehicle-by-vehicle basis, optimize routes to minimize CO2 emissions and comprehend the influences of their sustainability efforts. By making use of AI technology, DispatchTrack's route optimization mechanism identifies green delivery alternatives that utilize effective routes with fewer miles covered and less fuel consumed, subsequently aiding last-mile delivery firms in reducing fuel usage by a minimum of 10%.
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Which Players Are Driving Innovation 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
Which Regions Are Driving Global Green Logistics Market Expansion?
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.
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