The global green logistics market was worth $1.3 trillion in 2022 and is expected to reach $2.9 trillion by 2032, with a CAGR of 8.3% during the forecast period of 2023-2032, as per a new report released by MIR, titled, “Green Logistics Market,“.
Asia-Pacific now led the green logistics industry in 2022. This was mainly because China is actively encouraging green practices, investing in clean energy and electric vehicles. Japan leads in the adoption of green technology, and India and South Korea are also concentrating on developing infrastructure and encouraging electric vehicles. The second largest market of the green logistic in 2022 is North America. The U.S., Canada, and Mexico are key players in the region of the green logistics business. The region has been observing increased focus on environmentally friendly operations due to increasing pressure from environment laws and people’s growing concerns for reducing the carbon footprint. The U.S. dominates the green logistics industry in North America owing to its sizeable economy and developed transportation system. Private logistic firms based in the U.S. have made investments in environmentally friendly logistic projects. For example, in March 2021, FedEx Corporation stated that it invested $2 billion to go carbon-neutral by 2040. The initial investments are anticipated to be put into fleet electrification, carbon separation, and renewable energy.
KEY OBSERVATIONS OF THE STUDY
On the basis of end use, manufacturing segment is projected to witness robust growth in green logistics market during the near future.
On the basis of business type, the distribution segment is projected to witness robust growth in green logistics market during the near future.
On the basis of mode of operation, the storage segment is projected to witness robust growth in green logistics market during the near future.
Based on geography, the Asia-Pacific region is expected to exhibit the maximum CAGR between the forecast years.
Some of the top players in the green logistics market report are FedEx Corporation, DSV, Agility Public Warehousing Company K.S.C.P. and Subsidiaries, GEODIS, Deutsche Post DHL Group., YUSEN LOGISTICS CO., LTD., Bollor SE, CEVA Logistics, XPO Logistics, Inc., and United Parcel Service of America, Inc.
Green Logistics Market Trends
The Demand for Green Warehouses is Increasing
A number of decisive factors, such as the growth of multi-channel distribution networks, increasing emphasis on green programs, and sustainability to minimize waste in logistics operations, are propelling the growth of smart warehousing markets.
With a global climate crisis looming, it is not possible to go on with current warehouse operations that raise energy usage and waste production. Green storage is a ray of hope in the battle against these issues. Green warehousing presents a new way that is good for business and the planet by focusing on efficient use of resources, lowering carbon emissions, and encouraging renewables.
To gain global exposure among 3PL and 4PL providers, constructing warehouses that are of international standards like BREEAM and LEED is necessary. The trend will continue to grow, with demand rising by 16.6% to 61.5 million sq. ft and the supply accordingly growing to 61.9 million sq. ft by 2026, a rise of 15.8% from the 2023 estimated figures.
In August 2023, Infor revealed that Zofri would be installing the Infor WMS warehouse management system to enhance customer service, one of the key supply chain performance metrics. The Infor WMS solution would be installed in the cloud on AWS (Amazon Web Services) and implemented by Cerca Technology, Infor’s Latin American partner.
Asia-Pacific leads the market
The market for the region is expanding as developing economies like India transition to the Fourth Industrial Revolution and introduce new digital technologies.
Second, India also puts its efforts in developing logistics infrastructure and electric vehicle growth in the industry. To illustrate, during January 2023, FedEx Express was boosting its fleet as it added 30 Ace TATA electric trucks to its vehicle list in India in a push for carbon-free operations globally by 2040. South Korea, on its part, has been also doing the same through undertaking steps that lead to lesser emissions and logistics effectiveness in the industry.
Asia Pacific is also investing in initiatives in the green supply sector. For example, India has pledged to cut its emissions intensity by 45% by 2030 and become net zero by 2070. To make sure that the green logistics industry minimizes its carbon footprint and adopts green mobility, this pledge is backed by a capital outlay of USD 4,200 million (INR 35,000 crore) for energy transition.
Other nations like Australia, Singapore, and New Zealand are increasingly embracing green logistics measures in Asia-Pacific. To minimize their carbon footprint, Singaporean freight companies have implemented electric vehicles and some renewable alternatives. Ninja Van Singapore has implemented measures such as an EV pilot test program or re-launching eco-friendly versions of its services to reduce the environmental footprint and help drive a sustainable logistics industry. Source: h
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