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.
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.
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.
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.
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.
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.
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. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global reverse logistics market size was estimated at USD 840.7 billion in 2021 and is expected to reach USD 937.1 billion in 2022.
b. The global reverse logistics market is expected to grow at a compound annual growth rate of 12.4% from 2022 to 2028 to reach USD 1,910.3 billion by 2028.
b. The Asia Pacific dominated the reverse logistics market with a share of 52.34% in 2021. This is attributable to the increasing usage of e-commerce and increasing demand for reverse logistics for electric vehicles.
b. Some key players operating in the 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; and Safexpress Pvt. Ltd.
b. Key factors that are driving the reverse logistics market growth include the increasing adoption of reverse logistics by numerous companies, rising awareness of the benefits of reverse logistics, and growing awareness towards the environment.
GET A FREE SAMPLE
This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.
NEED A CUSTOM REPORT?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.
Contact us now to get our best pricing.
ESOMAR certified & member
Leading SME award by D&B
We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.
"The quality of research they have done for us has been excellent."
We value your investment and offer free customization with every report to fulfil your exact research needs.