Allied Market Research

Reverse Logistics Market is Expected to Reach $603.9 Billion by 2025


quote Based on return type, the commercial return segment dominated the global reverse logistics market in 2017, in terms of revenue. In addition, based on end user, the others segment is expected to lead the market throughout the forecast period. At present, Asia-Pacific is the highest revenue contributor, and is expected to garner the highest revenue in the global market during the forecast period, followed by North America, Europe, and LAMEA. quote

Rohit Sawant & Anvay Sonpimple
Research Analyst, Automotive and Transportation at Allied Market Research

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According to a recent report published by Allied Market Research, titled,"Reverse Logistics Market by Return type and End User: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global reverse logistics market was valued at $415.2 billion in 2017, and is projected to reach $603.9 billion by 2025, registering a CAGR of 4.6% from 2018 to 2025.

At present, Asia-Pacific dominates the market, followed by North America, Europe, and LAMEA. China dominated the global reverse logistics market in 2017, whereas India is expected to grow at a significant rate in Asia-Pacific during the forecast period.

Product in reverse logistics process can undergo remanufacturing, refurbishment, returns management, warranty management, warehouse management, and others. Reverse logistics represent a remarkable share of supply chain, which is not managed efficiently. According to the estimate by leading companies, cost of reverse logistics can range from 1% of supply chain cost (well managed supply chain) to 10% (not well managed supply chain)

Expansion of E-commerce industry, stringent government rules in automotive industry increasing product recall, and increase in need of reverse logistics in pharmaceutical industry are the factors that drive the growth of the market. However, uncertainty in reverse logistics process and increase in quality control hinder the growth of the reverse logistics market. Furthermore, introduction of Blockchain technology and rise in need of reverse logistics due to increase in e-waste holds a remarkable growth opportunity for the key players operating in the reverse logistics industry.

Goods in supply chain flow from supplier or manufacturer to the end customers. In addition, the effectiveness of supply chain is measured using on-time delivery (OTD) metric, which is a common measurement to ensure the fast and efficient delivery of the goods from the time customer puts his/her order. However, the work of supply chain is not completed as the customer send significant amount of products for return for reasons such as wrong product ordered, damaged products delivered, quality of products does not match the description, customer no longer need the products, and others.

Additional cost is added to the base cost of goods when the product is returned, which in turn negatively affects the stocks of the company. Implementation of efficient and effective reverse logistics process can reduce this cost and help companies to recover significant share of revenue. Advantages of reverse logistics such as extension to the life cycle of product by repairing, recycling, and others, it can be used as asset recovery to extract as much value as possible, and provides second return of investment. Reverse logistics is gaining more popularity due to the arrival of e-commerce era and replacement of physical retailers with the online ones. Compared to brick-and-mortar store, 30% of the products bough online are returned, which in turn puts pressure on supply chain to manage the return process effectively.

Key Findings of theReverse Logistics Market:

  • Based on return type, the commercial returns segment generated the highest revenue in 2017.
  • Based on end user, the others segment was the highest revenue contributor in 2017.
  • Based on region, LAMEA is anticipated to exhibit the highest CAGR during the forecast period.
  • In 2017, Asia-Pacific contributed the highest reverse logistics market revenue, followed by Europe, North America, and Asia-Pacific.

The key players analyzed in this reverse logistics market report are C.H. Robinson, DB Schenker, Delcart, Deliveryontime Logistics Pvt. Ltd., FedEx Corporation, Kintetsu World Express, Reverse Logistics Company, The Deutsche Post AG, United Parcel Service, Yusen Logistics Co., Ltd., and others.

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quote Reverse Logistics Market by Return Type (Recalls, Commercial Returns, Repairable Returns, End-of-use Returns, and End-of-life Returns) and End User (E-commerce, Automotive, Pharmaceutical, Consumer Electronic, and Others): Global Opportunity Analysis and Industry Forecast, 2018 - 2025 quote

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