The global reverse logistics market was surpassed at USD 840.8 billion in 2021 and is expected to hit around USD 1,910.9 billion by 2030, growing at a CAGR of 17.84% from 2022 to 2030.
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 operation is one of the key factors that drive the market. The increasing awareness regarding the benefits of reverse logistics, along with the growing awareness regarding the environment, is also driving the market. Reverse logistics is expensive and high in cost and additionally, the lack of availability of funds and lack of awareness regarding the economic benefits of reverse logistics are the major factors restraining the market growth.
Moreover, the lack of enforceable and clear regulation legislation by the government makes it difficult for firms to decide the effective strategies for implementing reverse logistics, which is expected to be a barrier for the market. Most of the key players operating in the market are adopting various strategies to capture maximum market share globally. The COVID-19 pandemic has negatively impacted the market. The market witnessed a decrease due to the global lockdown as major supply chains were disrupted across the globe. However, the supply chain for e-commerce was operating due to the inclination of users or consumers toward required and necessary products.
The e-commerce end-user industry segment held the largest revenue share of over 55.0% in 2021 and is expected to expand at the fastest CAGR over the forecast period. The increasing adoption and usage of e-commerce by consumers results in a surge in the usage and adoption of reverse logistics to efficiently maintain reselling or returning of products, thus contributing to the market growth. Asia Pacific accounted for the largest revenue share of over 50.0% in 2021 and is expected to expand at the highest CAGR over the forecast period. The growing tradition of e-commerce in Asia Pacific upshots in swelling returns from the region, which is expected to contribute to the market growth. The rising need for reverse logistics for electric vehicles in the region is also contributing to the market growth.
Scope of The Report
|Market Size in 2021||USD 840.8 billion|
|Revenue Forecast by 2030||USD 1,910.9 billion|
|Growth rate from 2022 to 2030||CAGR of 17.84%|
|Forecast Period||2022 to 2030|
|Segmentation||End-user industry, region|
|Companies Covered||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.|
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.
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.
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