Reverse Logistics Market Forecasts to 2030 – Global Analysis By Return Type (End of life return, End-of-use Returns, Commercial Returns, Repairable Returns, Recalls and Other Return Types), Service, End User and By Geography

Reverse Logistics Market Forecasts to 2030 – Global Analysis By Return Type (End of life return, End-of-use Returns, Commercial Returns, Repairable Returns, Recalls and Other Return Types), Service, End User and By Geography

According to Stratistics MRC, the Global Reverse Logistics Market is accounted for $791.8 billion in 2023 and is expected to reach $1,322.2 billion by 2030 growing at a CAGR of 7.6% during the forecast period. Reverse logistics is the area of supply chains that handles goods coming back into the system or travelling ""backward"" through the system. Reverse logistics is a type of supply chain management where products are moved backwards from buyers to sellers or producers. Reverse logistics is needed for procedures like returns and recycling after a client receives a product. A reverse logistics solution that is both effective and efficient is required due to the increase in the frequency of returns and replacement items caused by the global expansion of e-commerce firms.

According to studies, 36% of consumers prefer to buy products from traditional retail stores after doing their research online.

Market Dynamics

Driver

Advancement of the e-commerce sector

The logistics and e-commerce industries have grown tremendously as a result of the rise in connection solutions. Global demand for time-effective shipment and return services for goods transportation in forward and reverse logistics is driven by the growth of the e-commerce and logistics sectors. As a result, several businesses have been able to profit from this trend. The main driver fueling the market's expansion is the increased use of reverse logistics services to enhance the customer experience.

Restraint

Uncertainty in the reverse logistics process

Producers and merchants rely solely on the trustworthiness, knowledge, and integrity of logistics service providers. The manufacturing or retailing organisation in this circumstance has no direct control over its operations because it depends on the logistics service provider. Additionally, because the producer is unable to monitor warehouse activities, the quality of the product is gravely threatened. As a result, it is projected that the lack of manufacturer control over reverse logistics services will slow the market's expansion.

Opportunity

Blockchain technology's advent

Throughout the whole product life cycle, from the makers' acquisition of raw materials to the product's ultimate disposal, blockchain enables increased traceability and transparency. Market participants in the logistics industry have started to assess and apply blockchain technology to enhance backward logistics operations. Using blockchain technology also makes it simpler to track refunds and identify problems with high return rates. The development of cutting-edge blockchain technology for reverse logistics services gives a chance for the market to expand.

Threat

Lack of control of manufacturers

The dependability, competence, and integrity of logistics service providers are fully dependent on the producer and merchants. This situation involves a lack of direct control because the manufacturing or retailing organisation is dependent on the logistics service provider. Additionally, the manufacturer is unable to keep an eye on what is happening in the warehouse, which poses a major risk to the quality of the goods. Therefore, it is projected that manufacturers' lack of control over reverse logistics services will impede market expansion.

Covid-19 Impact

In order to stop the spread of the virus, the COVID-19 outbreak required governments all over the world to implement strict lockdowns and mandate social segregation. This caused disruptions to the supply chain and halted logistics operations all over the world. Because of the outbreak, nations had little choice but to temporarily suspend their logistical and transportation exchanges with one another. This had a substantial influence on the supply of goods and

The repairable returns segment is expected to be the largest during the forecast period

The repairable returns segment is estimated to have a lucrative growth, due to the increase in domestic and international interconnectivity has facilitated the expansion of the market boundaries of businesses. Similar to land, river, and air transportation systems, connection solutions offer delivery and return services that are quick and flexible. Reverse logistics is being driven by consumer-friendly government rules that hold producers accountable for faulty goods and give customers the right to a replacement.

The automotive segment is expected to have the highest CAGR during the forecast period

The automotive segment is anticipated to witness the fastest CAGR growth during the forecast period. The reverse logistics associated with automobile safety recalls aid in preventing vehicle-related mishaps, such as fire risk and component failure. Manufacturers are required to start the recall process when a safety fault is found and fix the issue to protect customers. The government has implemented strict restrictions in the automobile sector to prevent injuries or property damage brought on by a vehicle's or component's failure.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to the expansion of e-commerce in emerging markets. Furthermore, strong government assistance for growing the local logistics industry encourages market expansion. Reverse logistics behemoths are opening new regional branches as part of their business operations in order to establish return management services.

Region with highest CAGR

North America is projected to have the highest CAGR over the forecast period, owing to its highly integrated supply chain network. This network links consumers with producers through a variety of transport methods, such as trucking, freight rail, shipping via boat, air and express delivery services. Reverse logistics industry geographical growth is sparked by increased e-commerce activity. To improve the efficiency of manufacturers' goods return management, top logistic organisations are creating an innovative reverse logistics platform.

Key players in the market

Some of the key players profiled in the Reverse Logistics Market include FedEx Corporation, Deutsche Post AG, RLG Systems AG, Safexpress Pvt. Ltd., Core Logistic Private Limited, United Parcel Service, Inc., Kintetsu World Express, Inc., Yusen Logistics Co., Ltd., Ch Robinson, Worldwide, inc, CCR Logistics Systems AG, Bahn Group and DB Schenker.

Key Developments

In October 2022, Fedex Corporation will power its e-commerce service offering by launching Picture Proof of Delivery. Whereby tracking their package, customers will receive an image depicting the precise location of their parcel once delivered to their doorstep.

In June 2022, Fedex Corporation announced an alliance with FourKites to provide businesses with enhanced real-time exposure capabilities to aid in resolving their most prevalent supply chain issues.

In July 2021, Deutsche Post DHL Group has secured a contract from Lotus Cars for the provision of transport and logistics services to its manufacturing facilities for the next five years.

Return Types Covered
• End of life return
• End-of-use Returns
• Commercial Returns
• Repairable Returns
• Recalls
• Other Return Types

Services Covered
• Refund Management Authorization
• Reselling
• Replacement Management
• Transportation
• Warehousing
• Other Services

End Users Covered
• Luxury goods
• Consumer Electronic
• Pharmaceutical
• Retail
• Reusable packaging
• Automotive
• E-commerce
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements