Reverse Logistics Market Size & Share, by Return Type (Recall Returns, B2B Returns & Commercial Returns, Repairable Returns, End of Use Returns, End of Life Returns); Service; End-User - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 6267
  • Published Date: Jul 05, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024- 2036

Reverse Logistics Market size was over USD 1000.5 Billion in 2023 and is anticipated to exceed USD 3351.8 Billion by the end of 2036, growing at over 10.6% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of reverse logistics is estimated at USD 1106.6 Billion.

The market growth is expected to be encouraged by rising emphases by the government to reduce the disposal of waste, specifically electronic waste, and influence recycling. A 2024 study by the United Nations Institute for Training & Research stated, over 62 million tonnes (Mt) of e-waste were disposed off in 2022 in the environment which is the highest by about 82% as compared to 2010 across the globe. Therefore, the government plays a key role in building reverse logistics infrastructure through funding, facilitating, and incentivizing, along with the strict rules, and regulations related to the product standard.


Reverse Logistics Market overview-min
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Reverse Logistics Sector: Growth Drivers and Challenges

Growth Drivers

  • Surging utilization of automation & robotics in reverse logistics systems - Robots minimize warehouse backlogs and economically provide returned goods with another opportunity to be marketed to customers as part of the reverse logistics process. According to the International Federation of Robotics data published in 2023, close to 4945 units of robots were installed in industries in India.

    Moreover, autonomous mobile robots, or AMRs, collaborate with individuals to transport items to their proper destinations within distribution centers and minimize the backlog of returns. For instance, On 3 October 2023, Blue Yonder announced its partnership with GXO Logistics, Inc., to deploy innovative end-to-end supply chain software solutions to GXO direct network in the United States which includes the robotics hub. This further allows workers to concentrate on more urgent elements of the returns process rather than routine tasks, relieving them of laborious work.
  • Growing e-commerce activity - The success of any e-commerce business depends upon customer retention, and reverse logistics is one of the major operations that must be managed well to have a competitive advantage in terms of customer loyalty over their competitors.

    The increasing online store's sales prime focus is on reverse logistics to earn more from discarded, defective, and waste products. As per the Research Nester’s research in 2024, retail e-commerce sales are predicted to cross USD 6 trillion in 2024 across the globe. Hence, it not only encourages sustainability in the environment but also builds trust among the customers to improve company revenue in the future.
  • The rising importance of blockchain technology in reverse logistics - Blockchain enables reverse logistics to track and manage a good's whole lifecycle more efficiently, from the time producers buy component materials to the time the product is disposed of. Consequently, the major companies in the logistics sector are currently experimenting with blockchain technology to enhance reverse logistics operations.

    Blockchain technology additionally renders it simpler to track the performance of the suppliers in the logistics sector such as delivery, returns, spot difficulties with high return rates, and others. DB Schenker announced the collaboration with VeChain, on 12 June 2018, to develop a third-party evaluation system via blockchain. As a result, with the surging advancement of blockchain technology, the demand for reverse logistics is poised to expand.

Challenges

  • Uncertainty in the operation of reverse logistics - The manufacturing or retail business is dependent on the logistics service provider, consequently, it lacks immediate authority over its operations.

    In addition, there's an actual danger to the quality of the finished item because the manufacturer is unable to keep close tabs on warehouse activities. A confidentiality breach caused by outsourcing to a third-party reverse logistics (3PL) provider would also probably disclose client personal data or spread financially sensitive data. Therefore, the lack of supplier control over reverse transportation services is projected to limit reverse logistics market growth in the upcoming years.
  • High price of implementing reverse logistics - Reverse logistics process execution and oversight may prove expensive for companies. Hence, its expenses may have a detrimental effect on company margins, especially with low-value products.

Reverse Logistics Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

10.6%

Base Year Market Size (2023)

USD 1000.5 billion

Forecast Year Market Size (2036)

USD 3351.8 billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Brazil, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, South Korea, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Reverse Logistics Segmentation

End-User (Retail & E-Commerce, Automotive, Consumer Electronics, Healthcare)

Retail & e-commerce segment is projected to dominate reverse logistics market share of over 55.3% by 2036. Several factors that contribute to the growth of this segment are customer convenience to buy products remotely, the surging trend of online shopping, and growing internet penetration.  According to the Research Nester’s survey in 2024, more than 25 % of the world’s population shop online. As a result, the volume of returns has also increased, leading retailers, & e-commerce companies to opt for strong reverse logistics processes to manage return products adequately.

Additionally, reverse logistics serves a vital role in the online shopping sector because it facilitates transportation and the replacement and reselling of items, all of which contribute to the growth of the segment in the market.

Return Type (Recall Returns, B2B Returns & Commercial Returns, Repairable Returns, End of Use Returns, End of Life Returns)

B2B returns & commercial return segment in the reverse logistics market is predicted to register around 10.1% growth till 2036. This segment’s growth can be impelled by the surging concern associated with carbon emissions from B2B & commercial returns. As per Optoro 2021 Impact Report, returned inventory in the United States increased to USD 761 billion in 2021 from USD 428 billion in 2020. Moreover, e-commerce returns contribute to nearly 24 million metric tons of carbon dioxide emissions, each year. Nowadays, companies are becoming more aware of the return impact on the environment, thus, opting for reverse logistics to minimize carbon footprint.

Service (Transportation, Warehousing, Reselling, Replacement Management, Refund Management, Others)

The transportation segment in reverse logistics market is predicted to have notable growth in the revenue over the forecast period. In any logistics supply chain, the means of transport structure is the single most crucial element. An excellent transportation system provides enhanced performance in logistics, further reducing overall costs of operation and enhancing customer service. Therefore, a reliable transportation system is necessary to manage product returns efficiently, and effectively.

Our in-depth analysis of the global market includes the following segments:

          Return Type

  • Recall Returns
  • B2B Returns & Commercial Returns
  • Repairable Returns
  • End of Use Returns
  • End of Life Returns

          Service

  • Transportation
  • Warehousing
  • Reselling
  • Replacement Management
  • Refund Management
  • Others

          End-User

  • Retail & E-Commerce
  • Automotive
  • Consumer Electronics
  • Healthcare

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Reverse Logistics Industry - Regional Synopsis

APAC Market Statistics

Asia Pacific in reverse logistics market is estimated to account for more than 50.1% revenue share by the end of 2036. This market growth in this region is expected to be dominated by rising demand for electric vehicles. For instance, a 2023 study by the International Energy Agency states that the number of electric automobile registrations in India increased by 70% year or by 80,000 units in 2024. On the other hand, 8.1 million new electric vehicle registrations emerged in China in 2023 accounting for a 35% growth over 2022. As a consequence, the demand for reverse logistics is also estimated to surge since with the rise in EV vehicles, the need for maintaining batteries has also grown. Reverse logistics allow EV users to replace or repair non-functioning batteries, which is why this market is observing growth in the APAC region.

Moreover, the market in China is also poised to rise owing to the rising demand for reverse logistics in the healthcare sector over the coming years.

Additionally, the Indian market for reverse logistics is set to show significant growth due to factors including growing demand for smartphones.

Furthermore, with the surge in investment made in encouraging digitalization, the market in Japan for reverse logistics is predicted to expand.

Middle East & Africa Market Analysis

The Middle East & Africa reverse logistics market is projected to experience a significant rise in revenue over the forecast period. The main element set to encourage market expansion in this region is the growing construction of highways to ease transportation. For instance, the Saudi Eastern region observed the launch of close to USD 789 million road construction projects in 2023.  On that account, the market is poised to observe a surge in this region.

Further, in this region, the Israel market for reverse logistics will also observe the highest growth in the upcoming years. This could be owing to the rising disposable income in this region.

Moreover, the South Africa market for reverse logistics is to expand over the forecast period. This growth in the reverse logistics market is predicted to be dominated by growing investment in logistics.

Research Nester
Reverse Logistics Market size-min
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Companies Dominating the Reverse Logistics Landscape

    The market for reverse logistics is set to rise owing to the growth of key players in this market. These key players are focusing on advancing their services and adopting novel methods for reverse logistics to sustain themselves in the market. Some of these key players include:

    • Blue Yonder, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Debrand Services Inc.
    • DB SCHENKER
    • DHL Group
    • FedEx Corporate Services, Inc.
    • Kintetsu World Express, Inc.
    • United Parcel Service of America, Inc.
    • Reverse Logistics Group GmbH
    • Core Logistic Private Limited
    • Safexpress Pvt. Ltd.

In the News

  • On October 12, 2023, Blue Yonder reported the completion of an acquisition agreement for Doddle, an initial and last-mile technology business. After finalization, the purchase will enable Blue Yonder to add full-circle expertise addressing the final mile, returns management, and reverse logistics solutions to its already outstanding range of supply chain management and commerce capabilities.
  • On September 14, 2023, Debrand, situated in Canada, recently revealed the establishment of its new Surrey headquarters. Providing cutting-edge sorting technology for textile recovery, recycling, and reuse applications is expected to be the main goal of the new facility.

Author Credits:  Saima Khursheed


  • Report ID: 6267
  • Published Date: Jul 05, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

In the year 2023, the industry size of reverse logistics was USD 1000.5 billion.

The market size for reverse logistics is set to cross USD 3351.8 billion by the end of 2036 expanding at a CAGR of 10.6% during the forecast period i.e., between 2024-2036.

The major players in the market are Blue Yonder, Inc., Debrand Services Inc., DB SCHENKER, DHL Group, and others.

The retail & e-commerce segment is anticipated to garner a share of 55.3% during 2024-2036.

The Asia Pacific reverse logistics sector is poised to hold a 50.1% share by the end of 2036.
Reverse Logistics Market Report Scope
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