PUBLISHER: Allied Market Research | PRODUCT CODE: 1344374
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344374
The Green Logistics Market is expected to experience a significant growth rate of 8.3% from 2023 to 2032 owing to rise in environmental regulations and legislation- Allied Market Research
Green logistics focuses on optimizing transportation activities to reduce fuel consumption and emissions. This involves using more fuel-efficient vehicles, promoting modal shift (e.g., shifting from road transport to rail or water transport), and implementing route optimization techniques. It further adopts alternative fuel technologies such as electric or hybrid vehicles and sustainable aviation fuel (SAF) for air transport.
Moreover, rapid urbanization across the world increased the demand for automobiles. The automotive sector is expanding rapidly to meet the rising need for faster shipment of goods. In addition, automotive manufactures have adopted a green and economical logistic approach to minimize their carbon footprint. For instance, in November 2022, Ford entered into a partnership with Manufacture 2030, a digital platform that offers tools for measuring, managing, and mitigating carbon emissions across industries, including manufacturing. By becoming part of this platform, Ford strengthens its commitment to achieving carbon neutrality by 2050.
The company aims to decrease emissions not only from its operations but also from its tier suppliers and logistics services, aligning with its overarching goal. Through collaboration and the utilization of digital tools, Ford strives to make significant progress in reducing its carbon footprint throughout the supply chain. Improvement in the electric vehicle (EV) manufacturing process along with the advent of customized last mile delivery vehicles are expected to promote the growth of the automotive segment during the forecast period.
Distributed type of topology provides improved precision, owing to the presence of dedicated microcontrollers for each cell and are cheaper in price. In addition, these types of battery management systems are scalable and can be transformed by varying the number of cell boards. Moreover, this type of BMS is adopted for advanced solutions such as wireless BMS. For instance, in May 2022 Marelli, a prominent global automotive supplier, launched a new state-of-the-art Wireless Distributed Battery Management System (wBMS) and expanded battery management technologies for electric vehicles. This technology removes the requirement for physical connections in battery management systems (BMS) found in other architectures. As a result, it offers improved flexibility, efficiency, dependability, and cost-effectiveness, which are crucial considerations for electric vehicles. Thus, these advantages drive growth for the distributed topology segment.
In addition, with rapid development of time & society, the finance and logistics industry form a close integration, resulting in innovation and development in baking & financial logistics services, which, in turn, boosts the market growth. Government banks supported green logistic development by providing loans to green logistic projects. For instance, in April 2023, the Commonwealth Bank of Australia (CBA) introduced a diverse lineup of green asset finance solutions. These offerings are designed to assist businesses in their pursuit of sustainable practices by facilitating investments in green vehicles, equipment, and machinery. New finance options by CBA empower businesses to make environmentally conscious choices while simultaneously driving economic growth and efficiency.
Furthermore, growth in online retailing, direct-to-consumer sales, and online grocery shopping fuels the growth of the logistics market for the banking & financial services segment. For instance, in May 2023, Mahindra Logistics Limited (MLL), the largest integrated logistics solutions provider in India, partnered with LOGOS, a prominent logistics specialist in Asia-Pacific, and Venture partner Ivanhoe Cambridge, to convert India's largest warehousing facility into a net-zero energy park. This transformation expands MLL portfolio of renewable-powered warehouses to over 4 million square feet across the country. The facility now features a massive 500 kW rooftop solar panel installation. This initiative is equivalent to planting 3,500 trees and underscores MLL commitment to sustainable practices and environmental stewardship.
The global green logistics market is segmented into end use, business type, mode of operation, and region. On the basis of end use, it is bifurcated into military commercial and UAV. By business type, it is categorized into warehouse, distribution, and value-added services. On the basis of mode of operation, it is segregated into storage, roadways distribution, seaways distribution, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Key players profiled in the green logistics market report include Sensata Technologies, Inc., NXP Semiconductors, Renesas Electronics Corporation., Analog Devices, Inc., Texas Instruments Incorporated, STMicroelectronics, Leclanche SA, Nuvation Energy, Elithion Inc., Eberspacher Gruppe GmbH & Co. KG, Infineon Technologies AG and Exponential Power.