North America Reverse Logistics Market – Industry Trends and Forecast to 2030

North America Reverse Logistics Market Analysis and Size

The major factors driving the growth of the reverse logistics market are rising growth in cross-border trades, globalization and rapid growth in the e-commerce sector. However, the high cost associated with reverse logistics may act as a major restraint for the reverse logistics market. The growing inclination towards digitization of the sector is creating opportunities for the growth of the market. On the other hand, inadequate labour resources to handle returns may act as a major challenge for the market's growth.

Data Bridge Market Research analyses that the reverse logistics market which was USD 176,444.05 million in 2022, is expected to reach USD 269,751.83 million by 2030, and is expected to undergo a CAGR of 5.2% during the forecast period of 2023 to 2030. The “returns segment” is expected to hold a larger share in the reverse logistics market as a return is the initial and crucial step of reverse logistics. Moreover, returns in reverse logistics improve customer service as well as help to boost profits by repurposing products that are returned which are contributing to the growth of the segment in the market. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Reverse logistics is a type of supply chain management that various organizations follow in order to move goods/products from customers back to the sellers/manufacturers in an organized and safe manner. Once a customer receives a product, the processes in which the customer wishes to return or recycle the product comes under reverse logistics. Reverse logistics start at the end of the consumer, moving backward through the supply chain of the distribution management to the distributor and from the distributor to the product's manufacturer. Reverse logistics can also include processes where it is responsible for the final disposal of the product, including recycling or resale of the product. Fundamentals steps involved in reverse logistics management process the return, deal with returns, keep returns moving, repair and recycle.  

Reverse logistics Market Dynamics

Driver

• Increased adoption of smartphones and online shopping

The reverse logistics market is projected to grow significantly in the coming years, as more consumers use smartphones and shop online. These factors increase the volume and frequency of returns, exchanges, repairs, and refurbishments of products, which require efficient and cost-effective reverse logistics processes. The market players can leverage the opportunities created by the rising demand for reverse logistics services, especially in the e-commerce and electronics sectors, to enhance their competitive edge and customer satisfaction.

Opportunity

• Rising growth in cross-border trades

The reverse logistics market is projected to benefit from the increasing volume of cross-border trades in the coming years. As more products are shipped across different regions and countries, the demand for efficient and cost-effective returns management will also rise. This will create new opportunities for the reverse logistics market to offer solutions that can handle the complexities and challenges of cross-border returns.

Restraint/Challenge

• High cost associated with reverse logistics

One of the main challenges that the reverse logistics market faces is the high cost involved in the process of returning, repairing, recycling, or disposing of products. This cost can reduce the profitability and efficiency of the reverse logistics operations and discourage businesses from investing in them. Therefore, the high cost associated with reverse logistics can be a significant barrier for the growth of the reverse logistics market.

This reverse logistics market report provides details of new recent developments, trade regulations, import export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the reverse logistics market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.  

Recent Developments

• In September 2022, FedEx announced the plan to launch a consolidated returns service in 2023 that leverages less-than-truckload services to help shippers save costs. FedEx Consolidated Returns will allow customers to return items without a box or shipping label at approximately 2,000 FedEx Office locations. From there, the product will be consolidated with other returns from a variety of merchants and sent back to the shipper through a less-than-truckload option via FedEx Logistics
• In January 2022, FedEx launched its logistics-as-a-service solution in collaboration with Microsoft. The main objective of this service launch was to strengthen the company's logistic capabilities. Through this company ensured innovation in logistics to keep pace with growth in technology

North America Reverse Logistics Market Scope

The reverse logistics market is segmented on the basis of the return type, components, service type, and end-user. The growth among segments helps you analyze niche pockets of growth and strategies to approach the market and determine your core application areas and the difference in your target markets.

Return Type

• Returns
• Returns Avoidance
• Remanufacturing
• Refurbishing
• Packaging
• Unsold Goods
• End-Of-Life
• Delivery Failure
• Rentals & Leasing
• Repairs & Maintenance
• Others

Components

• Return Policy and Procedure (RPP)
• Remanufacturing or Refurbishment (ROR)
• Waste Disposal (WAD)

Service Type

• Transportation
• Warehousing
• Reselling
• Replacement Management
• Refund Management Authorization
• Others

End-User

• Textile and Garments
• E-Commerce
• Automotive
• Pharmaceutical
• Consumer Electronics
• Retail
• Luxury Goods
• Reusable Packaging
• Others

North America Reverse Logistics Market Regional Analysis/Insights

The reverse logistics market is analyzed, and market size information is provided by country, return type, components, service type and end-user.

The countries covered in the reverse logistics market report are the U.S., Canada, and Mexico.

The U.S. is expected to dominate reverse logistics market due to factors such as the strong presence of providers and the growing adoption of technological innovations in the logistics business. Moreover, U.S. is the fastest growing country in due to increasing adoption of reverse logistics due to increasing return rates in the e-commerce sector.

The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and North America Reverse Logistics Market Share Analysis

Reverse logistics market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, regional presence, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to reverse logistics market.

Some of the major players operating in the reverse logistics market are:

• FedEx (U.S.)
• United Parcel Service of America, Inc. (U.S.)
• Deutsche Post DHL Group (Germany)
• C.H. Robinson Worldwide, Inc. (U.S.)
• XPO Logistics, Inc (U.S.)
• Kintetsu World Express, Inc. (Japan)
• IBM Corporation (U.S.)
• Indev Group of companies (India)
• LogiNext Solutions Inc (U.S.)
• NFI Industries (U.S.)
• Optoro, Inc. (U.S.)
• Reverse Logistics Group (Austria)
• ReverseLogix (U.S.)
• Schenker AG (Germany)
• ShipWizard (U.S.)
• Woodfield Distribution, LLC (U.S.)
• YUSEN LOGISTICS CO., LTD. (Japan)

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