Reverse Logistics Market to Reach $603.9 billion globally by 2025: research
PORTLAND, Oregon—New reports from Allied Market Research says that the global reverse logistics market generated $415.2 billion in 2017 and is expected to reach $603.90 billion by 2025, growing at a CAGR of 4.6 per cent from 2017 to 2025.
The company recently published a report, 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.
The research offers an analysis on changing market dynamics, key investment pockets, major segments and market competition.
Expansion of the e-commerce industry, stringent government rules in the automotive industry increasing product recall and the increased need for reverse logistics in the pharmaceutical industry drive the growth of the reverse logistics market, the report says. However, uncertainty in the reverse logistics process and an increase in quality control restrain the growth of the market. Conversely, the introduction of blockchain technology and a rising need for reverse logistics due to increasing e-waste create new opportunities for growth of the market.
Commercial returns to be dominant, end-of-life returns to grow the fastest
Among return types, the commercial returns segment grabbed more than one-third of the market share in 2017 and will maintain its revenue lead through 2025, the report says. Commercial returns allow the supplier to rectify the mistake, such as the wrong product delivered, damaged products and others, and enables a company to increase its revenue by implementing an effective reverse logistics process. However, the end-of-life returns segment would grow at the highest CAGR of 7 per cent from 2018 to 2025.
E-commerce segment to exhibit the fastest growth
Among end users, e-commerce is likely to exhibit the fastest growth of 6.3 per cent from 2018 to 2025. This is due to the increasing penetration of high-speed internet and the booming trend of online shopping. However, the others segment was the largest in 2017 and would dominate the market through the forecast period.
Asia-Pacific to be dominant, LAMEA to exhibit the fastest growth
The market in Asia-Pacific captured more than one-third of the market share in 2017 and is likely to dominate the market through 2025. This is because a majority of logistics companies have started offering specialized reverse logistics services in this region. However, LAMEA (Latin America, Middle East and Africa) is expected to register the fastest CAGR of 6 per cent from 2018 to 2025. The other regions analyzed in the report include North America and Europe.
Key players in the industry
Leading players analyzed in the reverse logistics market report include 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. These market players have adopted various strategies including collaborations, joint ventures, partnerships, expansions and others to gain a strong position in the industry.