Reverse Logistics Market To Generate Revenue Worth $1,431.8 Billion by 2030

The global reverse logistics market is projected to generate USD 1,431.8 billion revenue by 2030, advancing at a CAGR of 9.2% during 2023–2030. This can be due to the growing e-commerce industry, enhancement in technologies, surging international trade, rising foreign policies, and rapid globalization and industrialization.

• Moreover, the growing inclination toward digitization is creating opportunities for players operating in this market.
• E-commerce companies utilize automation, robotics, and augmented reality to excel in efficiency and reachability.
• The consumer preference toward online purchasing rather than in-store purchasing is increasing, due to rapid digitization.
• Moreover, technological advancements such as blockchain technology enable enhanced traceability, improved asset utilization, and transparency of the overall lifecycle of the product beginning from the sourcing of component materials by manufacturers to the final disposal of the product.
• In addition, supply chain companies are using blockchain and reverse logistics strategies for the management of product lifecycles such as reclaimed, reprocessing, and disposal.

Retail & E-Commerce Category Dominates the Market

Based on end user, the retail & e-commerce category dominates the market, accounting for the largest revenue share, of 60%, in 2023, and it is also expected to experience a strong CAGR during the projection period. This is owing to the growing e-commerce industry.

With the increasing popularity of online shopping, due to its benefits such as convenience, better price, easy availability, lead time, a variety of choices, authenticity, and better services offered by companies, the frequency of order returns is rising. Thus, this factor drives the market growth.

On the other hand, the automotive category is projected to show a significant growth rate over the forecast period. This can be ascribed to the surging defects in automotive manufacturing, which leads to the recall of products from markets.

Some of the automotive defects include battery defects, emission defects, and electronic defects. Thus, several stakeholders are impacted by automotive recalls, such as car owners, carmakers, automotive dealers, manufacturers, and insurers.

MEA Market To Witness the Significant Growth

• The MEA market is projected to witness significant growth during the forecast period. This can be due to the surge in the automotive industry and the high growth in the e-commerce footprint in the region.
• Moreover, major market players are adopting various strategic initiatives to gain a competitive position in the region.
• For instance, Cartlow, a U.A.E.-based company, raised USD 18 billion to expand its operations in Saudi Arabia and the U.A.E. and optimize its technology in reverse logistics.
• Hence, investments in this field are rising to establish logistic hubs in the region.
• In addition, the growing disposable and purchasing power of people and developments in technologies offer favorable opportunities to players offering reverse logistic services in the region.

Some of the major players operating in the reverse logistics market are Deutsche Bahn AG, DHL Group, FedEx Corporation, Safexpress Private Limited, Core Logistic Private Limited, YUSEN LOGISTICS CO. LTD., Reverse Logistics GmbH, Kintetsu World Express Inc., and United Parcel Service of America Inc.