Reverse-Logistics Sorting-Display Market Report 2026

The reverse-logistics sorting-display market size has grown rapidly in recent years. It will grow from $2.86 billion in 2025 to $3.22 billion in 2026 at a compound annual growth rate (CAGR) of 12.7%. The growth in the historic period can be attributed to expansion of e-commerce return volumes, growth in omnichannel retail operations, increasing emphasis on resale and refurbishment, adoption of barcode and tracking systems, rising complexity of return workflows.

The reverse-logistics sorting-display market size is expected to see rapid growth in the next few years. It will grow to $5.15 billion in 2030 at a compound annual growth rate (CAGR) of 12.4%. The growth in the forecast period can be attributed to growing investments in circular economy logistics, rising adoption of ai-assisted returns processing, expansion of automated reverse logistics facilities, increasing focus on cost recovery from returned goods, higher demand for real-time return visibility. Major trends in the forecast period include increasing adoption of structured return classification systems, rising use of automated sorting and display interfaces, growing integration of condition-based routing logic, expansion of centralized reverse logistics hubs, enhanced focus on error reduction in returns processing.

The exponential increase in e-commerce returns is expected to drive the growth of the reverse-logistics sorting-display market in the coming years. E-commerce returns refer to products purchased online that are sent back to retailers due to issues such as incorrect sizing, product defects, or customer dissatisfaction. With the rapid expansion of online shopping, the volume of returned merchandise has surged, creating a growing need for efficient return management systems. Reverse-logistics sorting-display solutions streamline the sorting and classification of returned goods, enabling quicker processing, reducing operational costs, optimizing inventory management, and improving customer satisfaction through faster refunds or replacements. For instance, in December 2024, the National Retail Federation (NRF), a US-based retail industry trade association, reported that total retail returns increased from $816 billion in 2022 to a projected $890 billion in 2024, reflecting a significant rise in return volumes. Therefore, the exponential rise in e-commerce returns is fueling the growth of the reverse-logistics sorting-display market.

The growing emphasis on sustainability and circular economy initiatives is expected to boost the reverse-logistics sorting-display market going forward. Sustainability and circular economy practices promote resource efficiency, waste reduction, and the reuse of materials to minimize environmental impact. This focus has intensified due to stricter government regulations that encourage businesses to transition from linear “take-make-dispose” models toward circular production systems. As a result, companies are increasingly adopting reverse-logistics sorting-display solutions to effectively recover, categorize, and repurpose returned or end-of-life products. These systems help minimize waste, optimize resource utilization, and support closed-loop supply chains that align operational efficiency with environmental responsibility. For instance, in November 2024, the London Borough of Hounslow, a UK-based local government authority, reported a 5% increase in recycling rates between October 2022 and September 2023. Therefore, the rising focus on sustainability and circular economy practices is propelling the growth of the reverse-logistics sorting-display market.

In October 2023, United Parcel Service Inc. (UPS), a US-based logistics company, acquired Happy Returns Inc. from PayPal Holdings Inc. for an undisclosed amount. This acquisition enables UPS to expand its returns infrastructure and enhance its digital solutions for both shippers and consumers. By integrating Happy Returns’ software and reverse logistics expertise with UPS’s extensive physical network, the company aims to offer more convenient, box-free, and label-free return options. The collaboration enhances speed, efficiency, and sustainability in return processing. Happy Returns Inc. is a US-based software and reverse logistics company specializing in reverse-logistics sorting-display solutions.

Major companies operating in the reverse-logistics sorting-display market are FedEx Corporation, United Parcel Service Inc., Deutsche Post AG (DHL Supply Chain), XPO Logistics Inc., C.H. Robinson Worldwide Inc., Ryder System Inc., GEODIS SA, ALOM Technologies Inc., Kuehne + Nagel International AG, CEVA Logistics AG, Reverse Logistics Group Inc. (RLG), Hollingsworth & Vose Company, Iron Mountain Incorporated, B-Stock Solutions Inc., Optoro Inc., Inmar Intelligence Inc., ReturnLogic Inc., GXO Logistics Inc., LiquiDonate Inc., Productiv Inc.

North America was the largest region in the reverse-logistics sorting-display market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the reverse-logistics sorting-display market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the reverse-logistics sorting-display market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The reverse-logistics sorting-display market includes revenues earned by entities by providing services such as return management systems, sorting automation, inventory visibility solutions, waste reduction services, and sustainability-driven reverse supply chain operations. The reverse-logistics sorting-display market also includes sales of touchscreen displays, barcode scanners, industrial PCs, and networked sensors. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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