[306 Pages Report] Global reverse logistics market worth is expected to rise at a CAGR of 12% to USD 2.9 Trillion by 2032, supported by:
A reliable reverse logistics solution is now more necessary than ever because of the expansion of e-commerce firms all over the world. Several sectors, including the automotive, electronics, pharmaceutical, and others, depend heavily on reverse logistics as an indispensable component of their supply chains and market network.
Countries all around the world have created and executed reverse logistics services to get the most value out of returned and damaged goods. Storage, resale, recycling planning, return monitoring, spare part management, and pollution compliance requirements are all part of reverse logistics operations. As manufacturers become more conscious of the need to minimize the negative environmental effect, there is predicted to be a stupendous increase in demand for reverse logistics services to ensure unimpeded customer satisfaction.
Over the forecast period, the sales of reverse logistics services are expected to be driven by the increasing adoption of reverse logistics by numerous companies in order to easily and effectively manage the return of products to companies or manufacturers from customers. Rising awareness of the benefits of reverse logistics, as well as growing environmental awareness, is expected to fuel demand for reverse logistics in the coming years.
| Attributes | Details |
|---|---|
| Reverse Logistics Market CAGR (2022 to 2032) | 12% |
| Reverse Logistics Market Value (2022) | USD 941.58 Billion |
| Reverse Logistics Market Value (2032) | USD 2,924.42 Billion |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The growth of automation technology and increasing trials and innovations in this sector is expected to keep it the dominant end-user vertical for the global reverse logistics market players and help it grow throughout the anticipated time period.
Stronger government investment in the construction of transportation infrastructure is also expected to contribute favorably to the expansion of the reverse logistics industry and its services. For example, in May 2021, the Brazilian government declared plans for a USD 50 billion investment in ports, highways, and railroads, following which the regions’ reverse logistics businesses are finding it simpler to locate the opportunities and provide service thereafter.
Additional and higher investment in outsourcing reverse logistics services has been seen across the world as a result of increasing retail sales, an increase in the introduction of novel electronic products, and strict regulatory prohibitions against the selling of unsafe goods to consumers.
For reverse logistics service providers the cross-border, B2B & B2C warehousing, rapid package delivery, end-to-end supply chain management, and technical support services are all anticipated to be expanded as a result of this financing trend. For example, in the case, the Gurgaon-based logistics company Delhivery disclosed in May 2021 that it had secured a USD 275 Million funding round for entering the reverse logistics market in the region.
However, the dependability, competence, and integrity of logistics service providers are entirely reliant on the producer and merchants that create the foundation for its success. And because this situation involves a lack of direct control since the manufacturing or retailing organization is dependent on the long-term service providers, the new players find it arduous to acquire clients, penetrate the market, and get established. Additionally, the manufacturer is unable to keep an eye on what is happening in the warehouse, which renders the reverse logistics consulting with additional responsibilities.
Furthermore, contracting with a third-party reverse logistics (3PL) business may result in a confidentiality breach, exposing customer personal data or allowing the exchange of information that is economically sensitive. The adoption of reverse logistics returns is also constrained by obstacles, including a lack of coordination at the retail vendor level and misalignment of the company's demand and service location capacity.
The reverse logistics market size is projected to rise due to the global expansion of eCommerce which increased the number of returns and replacement items, as well as the demand for reverse logistics service.
As manufacturers become more aware of the need to reduce negative environmental impact, the adoption of reverse logistics services to ensure uninterrupted client satisfaction is increasing around the world. Reverse logistics market share is rising as it is a critical component of the supply chain in many industries, including automotive, electronics, pharmaceuticals, and others.
The demand for reverse logistics is projected to grow as countries all over the world have developed and implemented reverse logistics services to extract value from returned and damaged products.
According to FMI Analysts, returns are worth nearly a trillion dollars worldwide each year and have become more common as eCommerce has grown. As a result, the demand for reverse logistics is projected to rise during the forecast period.
The goals of reverse logistics are to recover value and ensure repeat business. In-store purchases are returned at a rate of less than 10%, whereas items ordered online are returned at a rate of at least 30%.
The adoption of reverse logistics is projected to rise as it is used by astute businesses to increase customer loyalty and repeat business while minimizing return losses.
Warehousing, reselling, recycling management, returns management, replacement management, and environmental compliance are all applications of reverse logistics. As a result, these factors are anticipated to boost reverse logistics market expansion.
Increased innovation and the development of automation technologies are two major factors driving reverse logistics market growth. Several governments' initiatives to build transportation infrastructure are expected to boost the adoption of reverse logistics in the forecast period. Furthermore, with the rapid development of the e-commerce sector, the reverse logistics market expansion is expected to be boosted by increased demand for returns and replacements.
As the number of retail returns increases, so do the challenges and opportunities in reverse logistics market for better understanding consumer behavior and increasing future sales. Returns are quickly becoming one of the most difficult supply chain challenges that businesses face today. The demand for reverse logistics is predicted to rise as maintaining a healthy inventory turn and operating expenses requires a reverse logistics supply chain management strategy.
The adoption of reverse logistics is growing as it aids companies understand how, when, and why customers return items. Reverse logistics is critical to understanding purchasing behavior and improving overall experience. Moreover, every product return provides an opportunity to learn more about the customer, drive the next sale, and make the sale stick. As a result, this factor is anticipated to provide growth opportunities for reverse logistics market players.
Online returns are frequently the result of digital challenges such as poor image display and incorrect fit. Variations in manufacturer sizing contribute to more than half of all customer returns due to product size or fit. Key trends in the reverse logistics market include retail models such as curated shopping, rentals, and try-on services are adding to the volume of eCommerce returns. These retail models condition customers to make returns because they are based on the assumption that some, or all, of the items ordered, will be returned.
Reverse logistics aids companies aid in transforming siloed return policies and processes into a holistic returns strategy to turn reverse logistics market challenges into opportunities. Knowing when, how, and why customers return is part of that supply chain transformation, as is applying smarter insights throughout the reverse logistics supply chain.
Principal Consultant
Manufacturers and retailers rely entirely on the dependability, competency, and integrity of logistics service providers. The manufacturing or retailing company is reliant on the logistics service provider in this scenario, resulting in a lack of direct control. Furthermore, the manufacturer is unable to monitor warehouse operations, posing a serious threat to product quality and affecting the demand for reverse logistics.
Outsourcing to a third-party reverse logistics (3PL) company may result in a breach of confidentiality, exposing customer personal data or sharing commercially sensitive information. This factor is also one of the challenges in the reverse logistics market. Barriers such as a lack of coordination at the CEO level and a misalignment of the company's short and long-term strategic goals also limit the adoption of reverse logistics services. As a result, the lack of manufacturer control over reverse logistics services is expected to hinder the reverse logistics market growth.
The e-commerce segment dominated the reverse logistics market in 2021, accounting for more than 55.0 percent of total revenue, and is expected to grow at the fastest CAGR from 2022 to 2032.
The e-commerce sector has seen a significant increase as a result of users' growing preference for online shopping, as well as its increased usage and adoption of reverse logistics.
Reverse logistics is important in the e-commerce industry because it helps it replace and resell products while also assisting in transportation activities, which contributes to reverse logistics market growth.
The aforementioned factors contribute to the widespread use of reverse logistics in the e-commerce industry, resulting in increased revenue generation.
From 2022 to 2032, the automotive segment is expected to have the second highest CAGR of 12.6 percent in terms of revenue.
Reverse logistics is important in the automotive industry for a variety of factors, including legislative policies addressing ecological and environmental concerns, which contribute to reverse logistics market share. As a result, the automotive industry is expected to grow rapidly during the forecast period.
From 2022 to 2032, the Middle East and Africa are expected to have the second highest CAGR of 12.9 percent. The reverse logistics market expansion is attributed to expanding opportunities in the region, as well as various investments in the e-commerce industry.
The region is also attracting significant investment in logistics hubs, which is contributing to reverse logistics market size. The aforementioned factors, combined with an increase in disposable income, make the region much easier to penetrate than other markets.
Europe, Central and South America, and the Caribbean are expected to provide numerous opportunities for market participants to expand their businesses and reach a larger consumer base.
Asia Pacific had the highest revenue share of more than 51 percent in 2021 and is expected to grow at the fastest CAGR from 2022 to 2032. Increasing e-commerce usage results in higher returns from the region, which is expected to contribute to market growth.
Furthermore, the expansion of manufacturing industries in developing countries across the region, as well as rising demand for reverse logistics for electric vehicles, is expected to drive market growth.
As a result of the aforementioned factors, reverse logistics is widely used in Asia Pacific and contributes significantly to revenue generation.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The reverse logistics market is moderately fragmented, with the presence of both established and new players. To gain the greatest market share, the majority of the market's key players are pursuing various strategies such as alliances, partnerships, and mergers.
Startups in reverse logistics services and software solutions are expanding their portfolios. To attract new customers, these businesses are focusing on providing extensive services and developing new technologies.
Software developers are working to improve their distribution channels and sales structure in order to reach out to emerging markets while strategically maintaining relationships with existing clients.
A key startup in the reverse logistics market, ShipBob is a tech-savvy 3PL that specializes in reverse logistics for direct-to-consumer eCommerce stores. They integrate seamlessly with eCommerce platforms such as Amazon, Shopify, and BigCommerce (among others).
ShipBob can stock products in their warehouse before packaging and shipping them to customers. ShipBob has its own return process and also works with Happy Returns and Returnly.
Reverse logistics market is projected to have a CAGR of 12% through 2032.
Asia Pacific is the leading region in the reverse logistics market..
The e-commerce segment is expected to dominate reverse logistics market.
Reverse logistics market is predicted to grow USD 2,924.42 Bn by 2032.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Solution 5.1. Software 5.2. Services 5.2.1. Professional Services 5.2.2. Managed Services 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Process 6.1. Remanufacturing 6.2. Refurbishment 6.3. Servicing 6.4. Recycling and Waste Management 6.5. Others 7. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Returns 7.1. Repairable Returns 7.2. End-of-Use Returns 7.3. Others 8. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Industry 8.1. Retail and e-commerce 8.2. Chemical 8.3. Consumer Electronics 8.4. Manufacturing 8.5. Others 9. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 13. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 14. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Shadowfax 17.2. Shiprocket 17.3. Delhivery 17.4. Expressbees 17.5. Bluedart 17.6. First Flight Couriers Ltd. 17.7. Ecom Express 17.8. Safexpress and Bizlog 17.9. NetSuite 17.10. Zoho 17.11. Magaya 17.12. ESRI 17.13. SAP 18. Assumptions & Acronyms Used 19. Research Methodology
Technology
July 2022
REP-GB-10145
250 pages
Explore Technology Insights
View Reports
Reverse Logistics Market
