Dublin, Oct. 02, 2023 (GLOBE NEWSWIRE) -- The "Green Logistics Market By End Use, By Business Type, By Mode of Operation: Global Opportunity Analysis and Industry Forecast, 2023-2032" report has been added to ResearchAndMarkets.com's offering.
The global Green Logistics Market is set to experience significant growth, with a projected CAGR of 8.3% from 2023 to 2032. This growth is primarily attributed to the rise in environmental regulations and legislation worldwide.
Green Logistics Defined
Green logistics is a holistic approach aimed at minimizing the environmental impact associated with logistics operations. It encompasses a range of sustainable policies and practices geared towards quantifying and reducing ecological consequences related to the movement of products, information, and services. The core goal of green logistics is to enhance operational efficiency while prioritizing sustainability, encompassing initiatives to reduce emissions, adopt eco-friendly operational processes, and mitigate environmental pollution.
Optimizing Transportation for Sustainability
Green logistics places a strong emphasis on optimizing transportation activities to reduce fuel consumption and emissions. Key strategies include the use of fuel-efficient vehicles, modal shifts (e.g., from road transport to rail or water transport), and route optimization techniques. Additionally, it embraces alternative fuel technologies like electric or hybrid vehicles and sustainable aviation fuel (SAF) for air transport.
Automotive Sector's Commitment to Sustainability
The automotive sector plays a pivotal role in the green logistics landscape. Automotive manufacturers have adopted eco-friendly logistic approaches to minimize their carbon footprint. For example, Ford recently joined Manufacture 2030, a platform for carbon emissions measurement, management, and mitigation across industries, furthering its commitment to achieving carbon neutrality by 2050. By extending its efforts beyond its operations to tier suppliers and logistics services, Ford aims to reduce emissions throughout the supply chain.
Impact on Banking and Financial Services
The banking and financial services sector is also greatly influenced by green logistics. The rise in bank branch networks and the widespread adoption of information technology have led to increased demand for logistics services. Financial institutions are integrating eco-friendly logistics practices, supported by governments and banks that provide loans to green logistics projects. For example, the Commonwealth Bank of Australia introduced green asset finance solutions to facilitate investments in green vehicles, equipment, and machinery, enabling businesses to make environmentally conscious choices.
Growth in Roadways Distribution
Roadways distribution logistics is witnessing growth due to its lower capital investment compared to other transportation modes. This has led to the establishment of new companies in the market. The adoption of electric vehicles (EVs) in logistics, driven by the growing e-commerce industry and door-to-door delivery services, is boosting the green logistics market in the roadways distribution segment. Major logistics companies are transitioning to EVs to reduce carbon emissions.
Technological Advancements
The adoption of transportation management software is on the rise, with smart warehouses incorporating advanced technologies and automation systems to optimize operations and enhance energy efficiency. Additionally, logistics companies are increasingly focused on implementing eco-friendly practices, including the utilization of renewable materials, proper waste management systems, and energy-efficient solutions.
Market Segmentation
The green logistics market is segmented as follows:
- End Use: Healthcare, manufacturing, automotive, banking and financial services, retail and e-commerce, and others.
- Business Type: Warehousing, distribution, and value-added services.
- Mode of Operation: Storage, roadways distribution, seaways distribution, and others.
- Region: North America (U.S., Canada, Mexico), Europe (Germany, France, Russia, UK, rest of Europe), Asia-Pacific (China, Japan, India, South Korea, rest of Asia-Pacific), and LAMEA (Latin America, Middle East, Africa).
Key Market Insights
- The manufacturing segment is the highest revenue contributor, estimated to reach $817.09 billion by 2032, with a CAGR of 7.7%.
- The distribution segment is the highest revenue contributor by business type, estimated to reach $1,701.45 billion by 2032, with a CAGR of 8.6%.
- The storage segment dominates the mode of operation, estimated to reach $451.08 billion by 2032, with a CAGR of 7.6%. However, the seaways distribution segment is expected to grow the fastest, with a CAGR of 9.2%.
Regional Highlights
North America leads the green logistics market, with a focus on sustainable practices driven by environmental regulations and awareness of carbon footprint reduction. The U.S. in particular is taking significant steps toward sustainability, with private logistics companies investing in sustainable logistic projects. Canada and Mexico are also making strides in adopting green logistics practices, with a focus on alternative fuels and efficient supply chain management.
Key Market Players
Key players in the green logistics market include Agility Public Warehousing Company K.S.C.P. and Subsidiaries, Bolloré SE, CEVA Logistics, Deutsche Post DHL Group, DSV, FedEx Corporation, GEODIS, United Parcel Service of America, Inc., XPO Logistics, Inc., and Yusen Logistics Co., Ltd.
Market Dynamics
Drivers
- Increased CSR Activities by Logistic Companies
- Surge in Adoption of EVs in the Logistics Industry
- Implementation of Stringent Environmental Regulations
- Increase in Adoption of Artificial Intelligence in the Global Logistics Industry
Restraints
- Lack of Infrastructure
- Dependency on Fossil Fuels for Transportation
- High Costs of Implementing Green Procurement Practices Discourage Potential Investors
Opportunities
- Surge in Demand for Smart Green Warehouses
- Increased Environmental Consciousness Among End-Use Industries
- Development of LiDAR Drones for Last-Mile Delivery and Warehouses
For more information about this report visit https://www.researchandmarkets.com/r/je9285
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