GVR Report cover Reverse Logistics Market Size, Share & Trends Report

Reverse Logistics Market Size, Share & Trends Analysis Report By End-user Industry (E-commerce, Retail, Automotive, Consumer Electronics, Pharmaceutical), By Region, And Segment Forecasts, 2022 - 2028

  • Report ID: GVR-4-68039-941-0
  • Number of Pages: 74
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2020
  • Industry: Technology

Report Overview

The global reverse logistics market size was valued at USD 840.7 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 12.4% from 2022 to 2028. The increasing adoption of reverse logistics by numerous companies in order to easily and effectively manage the return of products to the companies or manufacturers from customers is expected to drive the global market over the forecast period. 

U.S. reverse logistics market size, by end-user industry, 2019 - 2028 (USD Billion)

The rising awareness regarding the benefits of reverse logistics, along with the growing awareness regarding the environment, is anticipated to fuel the market growth in the coming years. The COVID-19 outbreak had a negative impact on the market. A significant decline has been observed due to the complete disruption of supply chains across the globe during the COVID-19 pandemic to maintain the regulatory norms imposed by the government.

The process in which the goods or products flow in a backward direction from their final destination i.e. the point of end-user or end-consumer to the point of its origin or manufacture is known as reverse logistics. It is associated with all the operations that could take place with the reuse of materials or products that have been returned. Reverse logistics consist of various activities such as product redesigning, remanufacturing, refurbishment (reselling a product post repairing or verification being in good condition), and their proper disposal. 

Reverse logistics enables any company or vendor to efficiently tackle the higher-level activities including the controlling and implementation of storage and flow of these goods, their process of planning, along with the processing of any information related to them is increasing its usage among them, hence fueling the market expansion. Moreover, legislation and regulatory initiatives by several governments to adopt reverse logistics practices in order to ensure the effective disposal of product waste and eco-friendly operations are expected to contribute to the overall growth of the market. However, the lack of manufacturer control over reverse logistics services is expected to impede the market's expansion. 

The COVID-19 pandemic had a negative impact on the market growth. Lockdown was imposed in all the countries across the globe to stop the further spread of SARS-CoV-2. Owing to this, the supply chain across the globe was stopped and disrupted. However, the supply chain for the e-commerce industry was in the operating mode due to the increased usage of e-commerce in order to obtain the required needs. Due to the changing market conditions and social distancing measures, rising retail, e-commerce, and pharmaceutical sales, and global automotive industry leaders' refurbishment initiatives to recycle and reuse critical vehicle components such as a battery, the market is expected to see a significant recovery in the coming years. 

End-user Industry Insights

The e-commerce segment dominated the market and held a revenue share of over 55.0% in 2021 and is expected to expand at the fastest CAGR from 2022 to 2028. The e-commerce segment has been witnessing a significant surge due to the increasing inclination of users towards online shopping, along with its increased usage and adoption. Reverse logistics plays an important role in the e-commerce industry and helps it to replace and resell products, along with aiding in transportation activities, which is contributing to the market growth. The above-mentioned factors lead to the high adoption of reverse logistics in the e-commerce industry, hence contributing to more revenue generation.

Global reverse logistics market share, by end-user industry, 2021 (%)

The automotive segment is expected to exhibit the 2nd highest CAGR of 12.6% on the basis of revenue from 2022 to 2028. Reverse logistics holds a significant place in the automotive industry due to various aims such as legislative policies regarding ecological and environmental concerns, hence contributing to the market growth. Thus, the automotive segment is expected to witness lucrative growth over the forecast period.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 50.0% in 2021 and is estimated to expand at the fastest CAGR from 2022 to 2028. Increasing usage of e-commerce results in growing returns from the region, which is expected to contribute to the market growth. Moreover, the growth of the manufacturing industries in developing countries across the region, along with the increasing demand for reverse logistics for electric vehicles, is expected to fuel the market expansion. Therefore, due to the above-mentioned factors, the usage of reverse logistics in Asia Pacific is high and contributes more to revenue generation. 

The Middle East and Africa is anticipated to register the 2nd highest CAGR of 12.9% from 2022 to 2028. The growth of the market is attributed to growing opportunities in the region, along with various investments in the e-commerce industry. The region is also gaining high investment for logistics hubs, hence contributing to the market growth. The above-mentioned factors, coupled with a rise in disposable income, make the region much easier to penetrate as compared to the other markets. Europe and Central and South America are expected to offer numerous opportunities for market players to expand their businesses and reach a wider consumer base. 

Key Companies & Market Share Insights

The market is characterized by the presence of established as well as new players. Most of the key players working in the market are adopting various strategies such as alliances, partnerships, and mergers to gain maximum share in the market. For instance, the announcement for a contract between DHL Supply Chain, a subsidiary of Deutsche Post DHL Group with ReverseLogix was made in March 2022. Some prominent players in the global reverse logistics market include:

  • DB SCHENKER (Deutsche Bahn AG)

  • Deutsche Post AG

  • FedEx Corporation

  • Kintetsu World Express, Inc.

  • United Parcel Service, Inc.

  • Yusen Logistics Co., Ltd.

  • RLG Systems AG

  • Core Logistic Private Limited

  • Safexpress Pvt. Ltd.

Reverse Logistics Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 937.1 billion

Revenue forecast in 2028

USD 1,910.3 billion

Growth rate

CAGR of 12.4% from 2022 to 2028

Base year for estimation

2021

Historical data

2017 - 2020

Forecast period

2022 - 2028

Quantitative units

Revenue in USD billion and CAGR from 2022 to 2028

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

End-user industry, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France.; China; India; Japan; Brazil; Argentina; GCC; South Africa

Key companies profiled

DB SCHENKER (Deutsche Bahn AG); Deutsche Post AG; FedEx Corporation; Kintetsu World Express, Inc.; United Parcel Service, Inc.; Yusen Logistics Co., Ltd.; RLG Systems AG; Core Logistic Private Limited; Safexpress Pvt. Ltd.

Customization scope

Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report 

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global reverse logistics market report on the basis of end-user industry, and region:

  • End-user Industry Outlook (Revenue, USD Billion, 2017 - 2028)

    • E-commerce

    • Retail

    • Automotive

    • Consumer Electronics

    • Pharmaceutical

  • Regional Outlook (Revenue, USD Billion, 2017 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • GCC

      • South Africa

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