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.
Growth Drivers
Challenges
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 |
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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 |
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Service |
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End-User |
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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.
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:
Author Credits: Saima Khursheed
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