Various government plans and initiatives for a cost-efficient, resilient, and sustainable logistics ecosystem are driving the growth of the green logistics market.
In 2025, the market is expected to be at $2.226 trillion and will grow to $3.319 trillion in 2030, according to a recent survey from ResearchAndMarkets.com. This represents a compounded annual growth rate of 8.32%.
The green logistics market is experiencing emerging trends like adding multi-modal connectivity across highways, railways, ports, airports, logistics infrastructure, and inland waterways to facilitate sustainable economic activities.
Market Trends
The growing emphasis on sustainability and the transition to a green economy is reshaping the logistics industry, as businesses face increasing pressure to meet near- and long-term decarbonization commitments. Logistics operations are taking significant strides toward achieving net-zero emissions, with a focus on minimizing environmental impact through green logistics practices. This shift is driven by the urgent need to align with global sustainability goals and reduce the carbon footprint of supply chain activities.
A critical component of this transformation is the adoption of alternative fuels, which are essential for achieving sustainability and carbon neutrality in the logistics and supply chain sector. Biodiesel, methanol, hydrogen, natural gas, P-series fuels, and solar-based fuels are among the key alternatives being utilized to reduce reliance on traditional fossil fuels. These innovations are enabling the industry to move toward cleaner and more sustainable operations.
In North America, the market is being propelled by stringent sustainability regulations and increasing consumer awareness of environmental issues. The availability of alternative fuels, the adoption of electric vehicles, and the optimization of transportation routes are making the region an attractive hub for sustainable logistics. Additionally, businesses are investing in energy-efficient warehouses and other infrastructure to further reduce their carbon footprint and align with sustainability goals.
In the Asia-Pacific region, rapid urbanization and large-scale construction activities in countries such as China, India, and Southeast Asia are driving the demand for sustainable logistics solutions. Recognizing the importance of sustainable logistics for economic growth and environmental well-being, the Government of India has launched several initiatives to promote green practices. One notable example is the PM GatiShakti National Master Plan (NMP), a strategic platform designed to enhance industrial productivity and support the country's green logistics and clean energy objectives through multi-modal connectivity.
