AMR Forcasts a $603.9 Billion Reverse Logistics Market by 2025: Growth Drivers and Trends
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% from 2017 to 2025.
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Expansion of the e-commerce industry, stringent government rules in the automotive industry increasing product recall, and increased need for reverse logistics in pharmaceutical industry drive the growth of the reverse logistics market. However, uncertainty in the reverse logistics process and an increase in quality control restrain the growth of the market. Conversely, an introduction of block-chain technology and a rising need for reverse logistics due to increasing e-waste create new opportunities for growth of the market.
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 the 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% from 2018 to 2025. The other regions analyzed in the report include North America and Europe.
Key players of the industry:
Leading players analyzed in the reverse logistics market report include C.H. Robinson, DB Schenker, Delcart, Delivery on time 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.
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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 would maintain its revenue lead through 2025. Commercial returns allow the supplier to rectify the mistake such as wrong product delivered, damaged product, 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 7.0% 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% from 2018 to 2025. This is due to the increasing penetration of high-speed internet and booming trend of online shopping. However, the others segment was the largest in 2017 and would dominate the market through the forecast period.
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