The latest report by IMARC Group, titled “Reverse Logistics Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028,” finds that the global reverse logistics market reached a value of US$ 613.0 Billion in 2022. Reverse logistics refers to the process of transporting products back from the customers to the manufacturers or sellers. It forms an essential part of supply chain management that is functional across various countries to extract the value from returned and damaged products. It comprises various activities such as recycling, refurbishment, reselling of restocked items, reclamation of raw materials, and environmental compliance. The process helps maintain the movement of returns, repair and recycling, continue the flow of goods, create value, reduce cost, and complete the product life cycle. In recent years, reverse logistics are gaining traction as these solutions enhance customer satisfaction, improve brand image, and offer faster and better services.
Global Reverse Logistics Market Trends:
The market is primarily driven by the significant growth of the e-commerce industry across the globe. The increasing number of returns and replacement items is also propelling the demand for efficient reverse logistics services. Besides this, manufacturers in automotive, electronics, pharmaceuticals, and other end-use industries are shifting toward reverse logistics to reduce negative environmental impact. In addition, with the escalating demand for electric vehicles (EVs), automotive manufacturers are adopting reverse logistics solutions to reduce e-waste and ensure passenger safety. Apart from this, the development of manufacturing industries and the rising investments by governments of various nations to establish transportation infrastructure for making it easier for reverse logistics companies to operate globally is also fueling the market growth. Moreover, technological advancements, such as the introduction of blockchain technology that provides automated invoice generation and removes the time-consuming freight bill audit, are another major growth-inducing factor. Furthermore, rapid industrialization, especially across developed economies, and extensive investments in improving the supply chain management processes, are creating a positive outlook for the market. Looking forward, the market is expected to reach a value of US$ 858.8 Billion by 2028, exhibiting a CAGR of 5.5% during the forecast period (2023-2028).
- Based on the return type, the market has been segmented into recalls, commercial returns, repairable returns, end-of-use returns, and end of life returns.
- On the basis of the service, the market has been classified into transportation, warehousing, reselling, replacement management, refund management authorization, and others.
- The market has been categorized based on the end user into e-commerce, automotive, pharmaceutical, consumer electronic, retail, luxury goods, and reusable packaging.
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been examined, with some of the key players being C.H. Robinson Worldwide Inc., Core Logistic Private Limited, Deutsche Post AG, Fedex Corporation, Happy Returns Inc. (PayPal Holdings Inc.), Kintetsu World Express Inc. (Kintetsu Group Holdings), Optoro Inc., Pitney Bowes Inc., Reverse Logistics Group, Safexpress Private Limited, United Parcel Service Inc., and Yusen Logistics Corporation Limited (Nippon Ysen Kabushiki Kaisha).
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