AI in reverse logistics market set for faster growth through 2030

A new report from The Business Research Company says the global artificial intelligence in reverse logistics market is expanding as e-commerce returns rise and companies automate returns handling. The market is projected to reach $5.93 billion by 2030, with North America leading now and Asia-Pacific expected to grow fastest.

Why it matters: - AI is becoming a core tool for managing returns, refurbishment and disposal in reverse logistics. - The technology is aimed at reducing costs, speeding up returns decisions and improving customer satisfaction. - Growth in e-commerce returns is pushing logistics operators to adopt more automated systems.

What happened: - The Business Research Company released its Artificial Intelligence (AI) In Reverse Logistics Global Market Report 2026. - The report estimates the market will rise from $3.89 billion in 2025 to $4.25 billion in 2026. - The report projects the market will reach $5.93 billion by 2030. - North America held the largest market share in 2025. - Asia-Pacific is expected to post the fastest growth over the forecast period.

The details: - The report puts the 2025-2026 growth rate at 9.1%. - It forecasts a 2026-2030 compound annual growth rate of 8.7%. - Past growth reflects higher e-commerce return volumes, rising logistics costs, wider organized retail supply chains, broader warranty and return policies, and early returns management systems. - Future growth is linked to wider adoption of AI-powered reverse logistics platforms, circular economy programs, automated sorting and refurbishment, lower-cost returns handling and predictive analytics. - The report highlights AI-driven prediction of returns and reverse flow optimization as a key trend. - The report also points to automation in refurbishment and lifecycle tracking, intelligent sorting and grading of returned merchandise, and circular economy-focused logistics platforms. - AI in reverse logistics uses machine learning, predictive analytics and automation to improve returned product handling, recycling, refurbishment and disposal. - The report says this approach helps companies forecast return volumes and streamline reverse supply chain activities. - The report says AI can speed return authorizations, routing and restocking. - A January 2024 report from PUDO Inc. said the rate of returned e-commerce items rose from about 20% in 2022 to about 25% in 2023. - The market report covers Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East and Africa. - The 2026 edition adds market attractiveness scoring, TAM analysis, company scoring matrices, Excel-based forecasting dashboards, hotspot infographics, and updated technology and trend analysis. - The report includes a free sample and the full market report.

Between the lines: - The market is shifting from basic returns management to AI-led automation and forecasting. - Rising return rates are making reverse logistics a more expensive and strategic part of supply chains. - Circular economy goals are becoming a bigger driver as companies look to recover more value from returned goods.

What's next: - The report expects AI platforms for reverse logistics to expand further as companies automate sorting, grading and refurbishment. - Predictive analytics is likely to play a bigger role in return forecasting and supply chain planning. - Asia-Pacific's faster growth suggests more investment in returns infrastructure and logistics technology across the region.

The bottom line: - AI in reverse logistics is moving from a niche efficiency tool to a mainstream supply chain investment, with growth supported by e-commerce returns and automation demand.