The global green logistics and transportation market revenue was around US$ 1.4 trillion in 2023 and is estimated to reach US$ 2.8 trillion by 2032, growing at a compound annual growth rate (CAGR) of 8.3% during the forecast period from 2024 to 2032.
The term green logistics, sometimes referred to as sustainable logistics or eco-logistics, describes the process of incorporating environmental factors into supply chain management and logistics procedures to reduce environmental impact and advance sustainability. To lessen carbon emissions, energy use, waste production, and other detrimental environmental effects connected to the transportation and logistics sector, new tactics, technologies, and regulations must be applied. It focuses on several topics, including energy efficiency, sustainable packaging, efficient transportation, and supply chain optimization.
Factors Influencing Market Growth
- An increase in corporate social responsibility (CSR) activities in the logistics industry as businesses strive to align their operations with sustainability objectives increases the demand for green logistics, thus driving market growth.
- The surge in adoption of EVs in the logistics industry increases demand for green logistics and propels market growth.
- An increase in the adoption of artificial intelligence (AI) in the global logistics industry reduces resource consumption, thus improving the efficiency of green logistics operations. This will increase the demand for green logistics, thus fueling market growth.
- The rise in dependency on fossil fuels for transportation may hamper market growth.
Impact of COVID-19
COVID-19 positively impacted the market. Due to a significant slowdown in the supply chain, a decline in business confidence, and a rise in customer anxiety, the COVID-19 crisis caused market uncertainty. Various regional governments declared a complete lockdown and temporary closure of industries, which had a negative impact on supply chain operations as a whole. Nations all over the world imposed severe limitations, varying from several days to several months of lockdown. Many businesses stopped operating as a result of the COVID-19. The impact of social distancing and lockdowns led to a rise in the demand for online retailing relative to offline retailing. Green logistics had grown during COVID-19 due to the increased demand for FMCG and healthcare supplies, including gloves, sanitizers, hospital supplies, vaccines, and perishable food items.
Regional Insights
Asia-Pacific dominated the market in 2023. This was mainly because China actively supports eco-friendly behaviors and makes investments in electric vehicles and clean energy sources. Logistics companies are embracing sustainable fuel options for transportation in Japan, a country well-known for its embracement of green technology, especially in the form of EVs and hybrid cars. For example, Yusen Logistics Co., Ltd. introduced the Yusen Book-and-Claim service in April 2023, allowing customers to grow sustainably by using sustainable aviation fuel (SAF) for air freight forwarding. South Korea and India are concentrating on developing their infrastructure and supporting electric vehicles.
Leading Competitors
- XPO Logistics, Inc.
- YUSEN LOGISTICS CO., LTD.
- Deutsche Post DHL Group.
- FedEx Corporation
- Agility Public Warehousing Company K.S.C.P. and Subsidiaries
- DSV
- Bollor SE
- CEVA Logistics
- United Parcel Service of America, Inc.
- GEODIS
- Other Prominent Players
Segmentation Analysis
The global green logistics and transportation market segmentation focuses on end use, business type, mode of operation, and region.
Segmentation based on End Use
- Healthcare
- Manufacturing
- Automotive
- Banking and financial services
- Retail and E-Commerce
- Others

Segmentation based on Business Type
- Warehousing
- Distribution
- Value added services

Segmentation based on Mode of Operation
- Storage
- Roadways Distribution
- Seaways Distribution
- Others

Segmentation based on Region

- North America
- The U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest Of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa