The Europe Green Logistics Market would witness market growth of 7.4% CAGR during the forecast period (2024-2031).
The Germany market dominated the Europe Green Logistics Market by Country in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $144,100.5 million by 2031. The UK market registers a CAGR of 6.5% during (2024 - 2031). Additionally, The France market would witness a CAGR of 8.3% during (2024 - 2031).
One of the major driving forces behind the growth of the market is enforcing stringent environmental regulations by governments worldwide. Policymakers are introducing laws that mandate emission reductions, fuel efficiency improvements, and the implementation of sustainable supply chain practices. Similarly, corporate sustainability reporting has become an integral part of business strategies, with companies being required to disclose their environmental, social, and governance (ESG) performance. Rising fuel costs are another significant factor propelling the market forward. Fluctuations in crude oil prices and increasing energy demand have made fuel expenses a major financial burden for logistics companies. As a result, businesses are seeking alternative energy sources and fuel-efficient transportation methods to reduce operational costs.
The shift toward a circular economy transforms logistics by prioritizing resource efficiency, waste reduction, and product reuse over the traditional "take-make-dispose" supply chain model. Companies are integrating reverse logistics, remanufacturing, and sustainable packaging to minimize waste and extend product lifecycles. Dell and Apple have adopted circular strategies by refurbishing used electronics and reintroducing them into the market, while IKEA promotes sustainability through its furniture buy-back program. The fashion industry is also making strides, with H&M’s Garment Collection Program and Adidas’ Made to be Remade initiative enabling the recycling old clothing and footwear into new products. Renault refurbishes used car parts in the automotive sector to reduce emissions, and Michelin recycles old tires to minimize landfill waste. Additionally, Amazon and Unilever are adopting biodegradable and recyclable packaging to combat plastic pollution in logistics operations.
Denmark is leveraging its renewable energy resources to foster sustainable logistics. The country is transforming the North Sea into a "green power plant," with projects like the 50MW electrolyzer plant in Kassø producing carbon-free hydrogen for the shipping industry. This initiative reduces emissions and positions Denmark as a leader in integrating renewable energy into logistics and transportation. Hence, these elements will drive the expansion of the regional market throughout the forecast period.
Free Valuable Insights: The Global Green Logistics Market will Hit USD 2505.92 Billion by 2031, at a CAGR of 7.8%
Based on Mode of Transportation, the market is segmented into Roadways, Railways, Waterways, and Airways. Based on Business Type, the market is segmented into Warehousing, Distribution, and Value added services. Based on End-use, the market is segmented into Retail & E-Commerce, Manufacturing, Automotive, Healthcare, Banking & financial services, and Other End-use. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.
By Mode of Transportation
By Business Type
By End-use
By Country
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