Green/Sustainable Logistics Market Strengthens with Rapid Integration of Electric Vehicles and Digitized Supply Chain Technologies

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the "Global Green/Sustainable Logistics Market Size, Share & Trends Analysis Report By Business Type (Transport, Warehouse, Distribution, Value-Added Services), Mode Of Operation (Storage, Airways Distribution, Railways Distribution, Roadways Distribution, Seaways Distribution), And End Use (Healthcare, Manufacturing, Automotive, Banking And Financial Services, Retail And E-Commerce), Region, Market Outlook And Industry Analysis 2034"

The Global Green/Sustainable Logistics Market is estimated to reach over USD 2529.30 Bn by the year 2034, denoting a CAGR of 7.9% during the forecast period.

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Sustainable logistics, also known as eco-logistics, refers to the incorporation of environmental considerations into supply chain and logistics operations to reduce ecological impact and enhance overall sustainability. This approach requires companies to streamline their supply chain processes to ensure efficient use of resources. Sustainable logistics addresses not only environmental performance but also the economic and social implications of logistics activities, with the goal of minimizing adverse effects across all three dimensions.

The expansion of the green logistics market is primarily supported by the increasing integration of electric vehicles (EVs) into logistics fleets and the growing emphasis on corporate social responsibility (CSR) among logistics service providers. However, market growth remains challenged by the ongoing reliance on fossil fuels within transportation and logistics operations, which continues to hinder full-scale adoption of sustainable practices.

List of Prominent Players in the Green/Sustainable Logistics Market:
• Agility Public Warehousing Company K.S.C.P.
• ARK India
• Bollor SE
• CEVA Logistics
• Deutsche Post DHL Group.
• DSV
• FedEx Corporation
• GEODIS
• Go Green Logistics
• Gosselin Logistics
• Green Logistics LLC
• States Logistics Services, Inc
• The Green Group
• United Parcel Service of America, Inc.
• Westerman Multimodal Logistics
• XPO Logistics, Inc.
• YUSEN LOGISTICS CO., LTD.
• Other Prominent Players

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Market Dynamics
Drivers:
The adoption of electric vehicles (EVs) in urban logistics has increased significantly in recent years, driven by their ability to reduce emissions and noise pollution when compared with traditional internal combustion vehicles (ICVs). This transition reflects the logistics sector's heightened commitment to sustainability and environmentally responsible operations. Companies across the industry are actively implementing strategies to lower their environmental impact, aligning with broader organizational sustainability objectives.

Historically, the logistics and transportation sector's reliance on oil and other fossil fuels has contributed to elevated operational costs for shippers and service providers. Moreover, conventional transport modes release harmful pollutants-such as particulate matter, nitrogen oxides, carbon dioxide, and black carbon-that negatively affect public health in communities near freight corridors and contribute to global climate change.

Challenges:
Despite growing momentum, the shift toward sustainable logistics is hindered by several structural and economic barriers. Continued dependence on fossil fuels, limited supporting infrastructure, and the high capital requirements associated with environmentally friendly procurement remain significant obstacles. The substantial cost of adopting green technologies is expected to be a major limiting factor for the Green/Sustainable Logistics Market. Additionally, the labor-intensive nature of calculating carbon emissions and producing regulatory compliance reports adds operational complexity, slowing broader adoption of sustainability initiatives across the logistics industry.

Regional Trends:
The Asia-Pacific region currently holds the dominant share of the global Green/Sustainable Logistics Market. Rapidly developing economies-such as India-are increasingly integrating digital technologies and Industry 4.0 innovations into logistics operations, driving strong regional growth. The expansion of end-to-end integrated logistics networks further supports this upward trajectory. Government regulations aimed at enforcing environmental compliance, along with the rising deployment of zero-emission electric vehicles, are key contributors to the region's leadership position and its growing influence on the global sustainable logistics landscape.

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Recent Development-
• In Jan 2024, DSV developed and launched an industry-first multimodal shipping strategy that uses sustainable aviation fuels (SAFs) to improve supply chain agility while reducing environmental impact. DSV and Schneider Electric have successfully deployed two unique multimodal shipping bridges-between Singapore and France and Shanghai to France-to minimize Scope 3 carbon emissions from air freight.
• In Aug 2023, CEVA Logistics said that it has signed an agreement to purchase Stellar Value Chain Solutions, which is based in Mumbai. The Stellar acquisition will allow CEVA to broaden its presence in India by increasing its local personnel, assets, client base, and skills. The transaction complements CEVA's objective of offering complete supply chain solutions to its customers. In addition to India, the acquisition adds to CEVA's recent development in contract logistics in Asia Pacific. The transaction is also expected to assist CEVA's freight management and customs operations in the region.
• In June 2023, the division of Deutsche Post AG, which specialises in air and ocean freight, DHL Global Forwarding, and IAGIAG Cargo in Sustainable Aviation Fuel (SAF), established a strategic collaboration. DHL has contracted to purchase 11.5 million litres of SAF as part of this agreement, which will help reduce transport emissions that fall under Scope 3 in 2023.
• In April 2023, a commercial electric vehicle was added to Bolloré Logistics' fleet in India, a division of Bollore SE. With its great mobility and minimal carbon footprint, it is perfect for last-mile delivery.

Segmentation of Green/Sustainable Logistics Market -
By Business Type
• Transportation
• Warehousing
• Distribution
• Value added Services
By Mode of Operation
• Storage
• Airways Distribution
• Railways Distribution
• Roadways Distribution
• Seaways Distribution
• Others
By End-user
• Healthcare
• Manufacturing
• Automotive
• Banking and financial services
• Retail and E-Commerce
• Others
By Region-
North America-
• The US
• Canada
• Mexico
Europe-
• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe
Asia-Pacific-
• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific
Latin America-
• Brazil
• Argentina
• Rest of Latin America
Middle East & Africa-
• GCC Countries
• South Africa
• Rest of Middle East and Africa

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This release was published on openPR.