Global Green Logistics Market Report: An Overview

Market Projections and Growth

The global green logistics market was valued at USD 1,507.02 billion in 2024 and is projected to reach USD 3,314.3 billion by 2034. The market is expected to expand at a Compound Annual Growth Rate (CAGR) of 8.2% during the forecast period of 2025 to 2034. This growth is propelled by factors including operational cost savings, enhanced corporate social responsibility (CSR) objectives, innovations in green technologies, rising consumer demand for sustainability, and increasingly stringent environmental regulations.

Contribution to Sustainable Development Goals (SDGs)

The expansion of the green logistics market is intrinsically linked to the achievement of several United Nations Sustainable Development Goals (SDGs). By focusing on minimizing the ecological impact of logistics activities, the sector directly supports:

• SDG 13 (Climate Action): Reducing greenhouse gas emissions from transport fleets and energy-efficient warehousing.
• SDG 12 (Responsible Consumption and Production): Promoting circular supply chains, sustainable packaging, and waste reduction.
• SDG 9 (Industry, Innovation, and Infrastructure): Investing in sustainable infrastructure, such as EV charging networks and smart logistics systems.
• SDG 7 (Affordable and Clean Energy): Driving the adoption of renewable energy sources in warehousing and transitioning to alternative fuels like LNG, sustainable aviation fuel (SAF), and electricity.
• SDG 11 (Sustainable Cities and Communities): Mitigating urban pollution through electrified last-mile delivery and optimized distribution networks.

Market Dynamics and Key Drivers

Primary Drivers

The primary driver for the green logistics market is the growing global demand for sustainability. This trend reflects a broader commitment from corporations and consumers to align with SDG 12 (Responsible Consumption and Production). Sustainable practices, such as optimizing logistics processes, reducing energy consumption, and utilizing renewable resources, enhance brand credibility, reduce waste, and lower greenhouse gas emissions.

Market Restraints

A significant restraint is the complexity and high initial cost of implementation. Transitioning to eco-friendly vehicles, adopting sustainable packaging, and investing in renewable energy sources requires substantial capital investment. These challenges highlight the need for innovative financing and policy support to advance SDG 9 (Industry, Innovation, and Infrastructure) within the logistics sector.

Opportunities for Growth

The development of smart logistics infrastructure presents a major opportunity. Leveraging technologies like Artificial Intelligence (AI) to automate and optimize logistics processes can enhance efficiency, reduce costs, and minimize environmental impact. Such innovations are crucial for building the resilient and sustainable infrastructure envisioned in SDG 9.

Key Market Trends and Innovations

• Electrification of Fleets: A rapid shift towards electric vehicles (EVs) for transport, including trucks and last-mile delivery vehicles, is underway to reduce emissions, directly contributing to SDG 7 and SDG 11.
• Carbon Tracking and Transparency: Growing demand for real-time carbon footprint monitoring enables companies to meet ESG goals and regulatory requirements, fostering accountability under SDG 12.
• Sustainable Packaging Solutions: The use of biodegradable, recyclable, or reusable materials reduces waste and transport emissions, aligning with the principles of SDG 12.
• Green Warehousing: The construction and retrofitting of warehouses with solar panels, LED lighting, and smart energy systems reduce energy consumption, supporting SDG 7 and SDG 9.
• Circular Supply Chains: The integration of reverse logistics for returns, recycling, and refurbishment is creating closed-loop systems that promote resource efficiency, a core target of SDG 12.

Segment Analysis

Analysis by Business Type

• The warehousing segment held the largest market share in 2024. Green warehousing practices, including energy efficiency and waste minimization, reduce operational costs and align with corporate sustainability values, contributing to SDG 7 and SDG 12.
• The distribution segment is projected to witness the highest growth rate. Green distribution, through efficient load planning, optimized routing, and sustainable packaging, directly reduces the carbon footprint of supply chains, advancing SDG 13.

Analysis by Mode of Transportation

• The roadways segment dominated the market in 2024, driven by ongoing fleet electrification efforts that are critical for reducing transport emissions and achieving climate targets under SDG 13.
• The airways segment is expected to record the fastest CAGR, fueled by the development of sustainable aviation fuels (SAFs) and carbon-neutral air cargo initiatives. These innovations are vital for decarbonizing a hard-to-abate sector and support SDG 7 and SDG 13.

Analysis by End-Use Sector

• The retail and e-commerce sector accounted for the largest market share in 2024. The adoption of eco-friendly packaging and delivery practices in this sector is a direct response to consumer demand for sustainable options, reflecting progress toward SDG 12.
• The manufacturing segment is forecast to expand rapidly, bolstered by industrial decarbonization programs and investments in green supply chain systems. This shift supports the transition to more sustainable industrial processes as outlined in SDG 9.

Regional Market Analysis

Asia Pacific

The Asia Pacific region led the market in 2024, driven by rapid industrialization, e-commerce growth, and government initiatives promoting low-emission logistics. Countries like China are making significant investments in electric freight vehicles and sustainable infrastructure, aligning national development with global climate commitments under SDG 13. Government support for green logistics in the region is a key factor in achieving a sustainable future.

North America

North America is projected to experience the fastest growth, supported by strong sustainability mandates, advanced logistics infrastructure, and widespread adoption of electric fleets. Federal and state incentives for EVs and renewable energy in warehousing create a favorable environment for green logistics, accelerating progress towards SDG 7 and SDG 9.

Private Sector Initiatives and Case Study

Notable Private Industry Investments

1. GreenLine Mobility (India): A USD 275 million investment to deploy over 10,000 LNG and electric trucks, aiming to reduce CO₂ emissions by approximately 1 million tonnes annually.
2. Amazon (UK): The UK’s largest order of electric heavy goods vehicles (over 140 trucks) as part of a broader investment in green logistics and EV charging infrastructure.
3. DP World & AM Green: A partnership to develop global logistics infrastructure for green fuels like ammonia and methanol, supporting the decarbonization of maritime transport.
4. Einride (Sweden): A USD 100 million funding round to expand its global fleet of electric and autonomous freight trucks, focusing on software-driven logistics and emissions reduction.

Case Study: GreenLine Mobility’s Decarbonization Initiative in India

In April 2025, GreenLine Mobility Solutions Ltd. launched a USD 275 million program to decarbonize India’s heavy trucking sector. This initiative represents a significant private-sector contribution to India’s net-zero ambitions and aligns with multiple SDGs.

• Challenge: India’s logistics sector contributes significantly to national CO₂ emissions, with a heavy reliance on diesel fuel. The lack of clean-fuel infrastructure hindered decarbonization efforts.
• Solution: The company implemented a phased strategy to deploy over 10,000 LNG and electric trucks, establish 100 LNG refueling stations, and integrate AI-powered route optimization. This approach directly addresses the need for sustainable infrastructure (SDG 9) and clean energy access (SDG 7).
• Results: By mid-2025, the operation of over 1,200 LNG trucks resulted in a cumulative reduction of 10,000 tonnes of CO₂, demonstrating a scalable and commercially viable model for climate action (SDG 13) in an emerging economy.

Leading Companies and Strategic Developments

Key players in the green logistics market are actively pursuing strategies that contribute to global sustainability targets. Their initiatives reflect a commitment to reducing environmental impact across their operations.

• DHL International GmbH: Committed to achieving zero emissions by 2050 through its GoGreen logistics services.
• United Parcel Service (UPS): Investing heavily in alternative fuel vehicles and carbon-neutral shipping options.
• FedEx Corporation: Working towards carbon-neutral operations by 2040 through investments in electric vehicles and sustainable aviation fuel.
• Kuehne + Nagel: Offering CO₂-neutral transport options and detailed emissions reporting to promote climate-conscious logistics.
• DB SCHENKER: Providing green transport solutions, including electric delivery trucks and sustainable warehousing, to lower carbon emissions.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article extensively discusses the transition from traditional fossil fuels to cleaner energy sources in the logistics sector. This includes the adoption of Liquefied Natural Gas (LNG), electric vehicles (EVs), sustainable aviation fuels, and the use of renewable energy sources like solar panels in warehousing. These efforts directly contribute to increasing the share of clean and renewable energy in the transport and industrial sectors.

• SDG 9: Industry, Innovation, and Infrastructure

  The core theme of the article is the transformation of the logistics industry through sustainable innovation and infrastructure development. It highlights investments in advanced logistics infrastructure, green supply chain systems, smart warehousing with automation, and the development of new technologies like AI-enabled route optimization and autonomous freight trucks. This aligns with the goal of building resilient infrastructure and fostering sustainable industrialization.

• SDG 11: Sustainable Cities and Communities

  The article addresses the environmental impact of logistics on urban and industrial areas. It discusses solutions like “last-mile delivery optimization,” the deployment of electric fleets for intra-state operations, and government initiatives promoting “low-emission logistics solutions.” These actions aim to reduce air pollution and greenhouse gas emissions from transportation, contributing to making cities and human settlements more sustainable.

• SDG 12: Responsible Consumption and Production

  The concept of green logistics is directly linked to sustainable production and consumption patterns. The article mentions the implementation of “circular supply chains,” “reverse logistics” for recycling and refurbishment, and the adoption of “sustainable packaging solutions” (biodegradable, recyclable, reusable). These practices aim to reduce waste generation and promote a more efficient use of resources throughout the supply chain.

• SDG 13: Climate Action

  The primary driver for the green logistics market, as described in the article, is the need to mitigate climate change. The entire article is focused on efforts to “decarbonize” the logistics sector, “reduce carbon footprints,” and lower greenhouse gas emissions. Specific initiatives, such as GreenLine Mobility’s goal to “reduce about 1 million tonnes of CO₂ annually,” are direct climate action measures.

• SDG 17: Partnerships for the Goals

  The article provides numerous examples of collaborations to advance sustainable logistics. These include partnerships between private companies (Hindustan Zinc and GreenLine Mobility), global logistics providers and green fuel developers (DP World and AM Green), and academia and the private sector (IIT Madras and FedEx). These multi-stakeholder partnerships are crucial for mobilizing the investment, technology, and expertise needed to achieve sustainability goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 7 (Affordable and Clean Energy):
  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article supports this through its discussion of “solar panels” in warehouses and the development of “sustainable aviation fuels.”
  • Target 7.3: By 2030, double the global rate of improvement in energy efficiency. This is addressed through the implementation of “energy-efficient systems” in warehousing, “AI-enabled route optimization” to reduce fuel consumption, and the fact that green initiatives led to “improved fuel cost efficiency by nearly 20%.”
• Under SDG 9 (Industry, Innovation, and Infrastructure):
  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. The article is a showcase for this target, detailing “industrial decarbonization programs,” investment in “green supply chain systems,” “fleet electrification efforts,” and the development of “smart logistics infrastructure.”
• Under SDG 11 (Sustainable Cities and Communities):
  • Target 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. The focus on “low-emission logistics solutions,” reducing “greenhouse gases that are harmful to the environment” from transport operations, and optimizing last-mile delivery directly contributes to improving urban air quality.
• Under SDG 12 (Responsible Consumption and Production):
  • Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse. This is directly supported by the article’s mention of trends like “Circular Supply Chains,” “Reverse Logistics & Sustainable Packaging,” and the use of “biodegradable, recyclable, or reusable packaging materials.”
• Under SDG 13 (Climate Action):
  • Target 13.2: Integrate climate change measures into national policies, strategies and planning. While the article focuses on corporate strategy, it notes that these initiatives align with “the government’s long-term net-zero vision” and are driven by “stricter environmental regulations,” implying an integration of climate goals into broader planning. The actions themselves, such as fleet decarbonization, are direct climate mitigation efforts.
• Under SDG 17 (Partnerships for the Goals):
  • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships. The article exemplifies this target through case studies of partnerships like “Hindustan Zinc partnered with GreenLine,” “DP World partnered with AM Green,” and “IIT Madras, in partnership with FedEx Corporation,” which are all aimed at achieving sustainable logistics.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Financial Investment: The article provides specific monetary values for investments in green logistics, which can be used as an indicator of commitment and progress.
  • Example: “GreenLine Mobility committed around US$275 million to decarbonize India’s heavy trucking sector.”
  • Example: “Hindustan Zinc partnered with GreenLine to invest ₹400 crore.”
• Reduction in CO₂ Emissions: The article quantifies the environmental impact of green logistics initiatives, providing a direct measure of progress towards climate goals.
  • Example: GreenLine’s initiative “aims to reduce about 1 million tonnes of CO₂ annually.”
  • Example: By mid-2025, GreenLine achieved “a cumulative reduction of 10,000 tonnes of CO₂.”
• Adoption of Clean Technology and Infrastructure: The article lists specific numbers related to the deployment of green vehicles and infrastructure.
  • Example: “Deployment of 10,000+ LNG and electric trucks across India by 2028.”
  • Example: “Establishment of 100 LNG refueling stations.”
  • Example: “Amazon made the UK’s largest order of electric heavy goods vehicles (over 140 electric trucks).”
• Market Growth and Size: The overall market size and its projected growth rate serve as an indicator of the large-scale adoption of green logistics practices.
  • Example: “The global green logistics market size reached USD 1,507.02 billion in 2024 and is estimated to attain USD 3,314.3 billion by 2034, growing at a CAGR of 8.2%.”
• Energy and Cost Efficiency Gains: The article mentions improvements in operational efficiency, which is a key indicator of the viability and success of sustainable practices.
  • Example: The initiative “improved fuel cost efficiency by nearly 20% compared to conventional diesel operations.”

4. Table of SDGs, Targets, and Indicators

Source: globenewswire.com