Transportation & Logistics

Between 2025 and 2030, the circular economy in automotive logistics across Europe, led by Germany, expands from €5.2B to €16.4B (CAGR 26.3%). EU OEMs are re-engineering logistics networks to integrate remanufacturing loops, green warehousing, and parts reuse systems. Germany, accounting for 37% of regional investment, pioneers battery reverse logistics and ESG-certified material flows. Closed-loop supply models cut carbon intensity by 44% and logistics waste by 35%. By 2030, circular logistics will become a regulatory and financial requirement under EU CSRD and ESG disclosure mandates.

The drone delivery market in Southeast Asia is projected to expand from $1.2B in 2025 to $6.8B by 2030 (CAGR 41.3%), driven by rapid e-commerce growth and infrastructure digitization. Singapore anchors regional innovation, supported by the U-Space regulatory sandbox and Civil Aviation Authority’s Beyond Visual Line of Sight (BVLOS) approvals. Operational economics show delivery cost reductions of up to 47%, fulfillment time improvements by 62%, and carbon emission cuts of 38% compared to traditional logistics. By 2030, drones are expected to handle 12% of Southeast Asia’s last-mile e-commerce deliveries.

India’s Hyperloop cargo transport market feasibility is gaining momentum as policymakers explore high-speed, zero-emission logistics networks capable of reshaping interstate cargo flows. The sector’s projected investment potential stands at $12.4B by 2030, with expected cargo transit speeds of 900–1,000 km/h. Pilot projects between Mumbai–Pune and Delhi–Jaipur could reduce transit times by 85% and logistics costs by 38%. By 2030, the integration of AI-driven routing, magnetic levitation, and renewable power systems could cut CO₂ emissions by 60% compared to conventional trucking.

The hydrogen-powered maritime transport market in Europe and the UK is projected to rise from $2.3B in 2025 to $8.9B by 2030 (CAGR 31.2%), driven by EU maritime decarbonization mandates and the creation of zero-emission green corridors. Supported by the FuelEU Maritime Regulation (2025) and the UK Clean Maritime Plan, hydrogen propulsion systems and bunkering infrastructure are expanding across Rotterdam, Hamburg, and Dover. By 2030, over 18% of short-sea vessels will operate on hydrogen-based fuel, cutting CO₂ emissions by 44% and operating costs by 21% across EU–UK maritime trade routes.

Between 2025 and 2030, the blockchain in logistics market across the Middle East, Africa, and UAE expands from $0.9B to $4.1B (CAGR 35.7%). Regional logistics players particularly in UAE, Saudi Arabia, and South Africa—are deploying blockchain to enhance freight visibility, contract automation, and customs traceability. Adoption is being driven by ESG transparency regulations, digital port modernization, and cross-border trade efficiency mandates. By 2030, 45% of regional freight data will be blockchain-verified, reducing fraud and documentation errors by 70% and customs clearance time by 40%.

The UK and European ferry transport and maritime logistics market is projected to grow from $6.4B in 2025 to $9.8B by 2030 (CAGR 8.9%), driven by digitization, decarbonization, and automation initiatives. The UK’s Maritime 2050 and Clean Maritime Plan programs are accelerating innovation in hybrid propulsion, hydrogen ferries, and digital route optimization. By 2030, over 45% of UK ferries will adopt low-emission or hybrid systems, cutting CO₂ output by 33% and operational fuel costs by 22%, establishing the UK as a model for sustainable coastal connectivity.

India’s electric mobility market for urban deliveries is projected to grow from $2.1B to $10.2B (CAGR 37.5%) between 2025 and 2030, driven by rising e-commerce demand, government incentives, and lower operating costs. Major cities like Delhi, Mumbai, and Bangalore will lead the way in e-van and e-cargo bike adoption. By 2030, 60% of urban delivery fleets will be electric, with a 30% reduction in CO₂ emissions from last-mile operations. Battery swapping stations and charging infrastructure are forecast to expand 3.5×, enabling greater fleet penetration in e-commerce logistics.

Between 2025 and 2030, India’s digital freight management market is projected to grow from $6.9B to $22.7B (CAGR 27.4%), driven by rapid adoption of AI-based transport planning, IoT telematics, and blockchain-enabled logistics visibility. Government programs such as GatiShakti, ULIP (Unified Logistics Interface Platform), and National Logistics Policy (NLP 2030) are integrating multimodal transport data across road, rail, air, and sea networks. Digitization is projected to reduce freight delays by 38%, optimize fleet utilization by 26%, and cut logistics costs as a share of GDP from 14% to 9.8% by 2030, reinforcing India’s position as Asia’s next major logistics powerhouse.

India’s rail transport modernization is set to grow from $30.5B in 2025 to $74.1B by 2030 (CAGR 19.6%), with a strong focus on freight optimization, electrification, and high-speed rail development. The government’s Dedicated Freight Corridors (DFC) and Smart Railways initiatives are transforming India’s rail infrastructure. By 2030, 35% of India’s freight network will be electrified, and high-speed rail will reduce intercity travel time by 50%. The development of smart stations, AI-based route optimization, and automated freight handling will contribute to a 22% increase in network efficiency, cutting operational costs by 18%.

Between 2025 and 2030, the AI and Machine Learning (ML) logistics market in Southeast Asia, led by Thailand, expands from $2.4B to $9.1B (CAGR 30.2%). Growing regional trade, automation demand, and e-commerce logistics are driving AI-enabled forecasting, route optimization, and demand prediction. Thailand, as ASEAN’s logistics hub, represents 27% of the regional AI logistics investment. Predictive analytics reduce delivery delays by 32%, while AI-powered warehouse systems cut inventory errors by 40%. By 2030, 65% of logistics companies in Southeast Asia will integrate AI into their supply chains, improving transparency, forecasting accuracy, and cost control.