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A53443 | Pages: 273 | Charts: 68 | Tables: 128 |
The global refurbished and used mobile phones market size was valued at USD 52 billion in 2021, and is projected to reach USD 145.9 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.
Rise in consumer dependency on smartphone devices globally and increase in number of companies providing EMI options for phones drive the growth of the market. In addition, cost efficiency benefits associated with refurbished and used mobile phones fuel the growth of the market. However, the scarcity of top models and limitations in the warranty period of refurbished and used mobile phones limit the growth of the market.
Furthermore, the increase the use of online platforms like Amazon, eBay, which offer refurbished mobile phones, has led to surge in consumer awareness and trust in these products, fueling the refurbished and used mobile phones market demand. In addition, the upsurge in the mobile carriers and retailers offering trade-in and buyback programs, allowing customers to exchange old phones for credit towards refurbished or used devices, drives the availability and circulation of used phones in the market, supports market expansion. This increased familiarity with used phones and their benefits has diminished the stigma associated with purchasing second-hand devices, making the process easier and more reliable. This is expected to augment the growth of the refurbished and used mobile phones market.
However, the scarcity of top models and limitations in the warranty period of refurbished and used mobile phones limit the growth of the market. In addition, some refurbished phones may use low-quality or non-genuine parts, resulting in poor performance, compatibility issues, or reduced longevity, leading to consumer dissatisfaction which hampers the growth of the refurbished and used mobile phones industry.
Conversely, the refurbished and used mobile phones market is expected to offer several opportunities for the growth of the market. Rise in the demand for affordable options and increase in consumer awareness of sustainability creates significant opportunity for the market growth. Many consumers, particularly in emerging markets looking for budget-friendly alternatives, prefer buying used or refurbished phones due to the significant cost savings compared to new models. As a result, the second-hand smartphones market is seeing considerable growth.
In addition, mobile phone repair services offer considerable growth opportunities, meeting the demand for affordable, high-quality devices. Companies that specialize in repairs like screen replacements, battery upgrades, and software restoration, become experts in their field. Providing certifications and warranties on refurbished phones builds consumer trust, reduces perceived risks, and encourages people to buy refurbished products. This is expected to contribute significantly to the expansion of the used mobile devices market, offering refurbished and used mobile phones market opportunities for the market growth.
Furthermore, the surge in the adoption of refurbished mobile phones due to the lower costs compared to new devices, particularly in regions like Asia, Africa, and Latin America, has contributed to the rapid growth of the second-hand smartphones market, making smartphones more accessible to a larger, budget-conscious population. In addition, rise in mobile carrier partnerships offer businesses opportunities to expand their market presence through trade-in programs and subscription-based models. These programs allow customers to exchange old devices for refurbished ones or pay a monthly fee for periodic upgrades, creating a continuous revenue stream and fostering long-term customer relationships.
Moreover, rise in advancement in technology, including AI and automation, are improving the quality and efficiency of the refurbishment process. These innovations enable quicker, more accurate assessments and repairs, ensuring refurbished phones meet high standards of performance and reliability. This is expected to offer lucrative opportunities for the growth of used mobile devices market.
The refurbished and used mobile phones market is anticipated to witness several noteworthy trends in the market. One of the prominent trends is growing popularity of second-hand smartphones, as more consumers seek affordable alternatives to brand-new devices. With the high cost of the latest smartphone models, purchasing used mobile devices has become an attractive option for many buyers. In addition, the increase in environmental awareness has fueled this demand, as people look to reduce electronic waste by opting for sustainable alternatives such as refurbished phones. Furthermore, there is growing trend toward advanced repair and testing processes ensuring these phones meet high quality standards, often restoring them to near-new condition. This builds consumer trust and makes refurbished phones a viable option for those hesitant about purchasing pre-owned devices.
In addition, the market dynamics is evolving rapidly, with online platforms and refurbishing companies making it easier to buy and sell used phones. This competition has led to better services, like warranties, return policies, and quality guarantees. Market leaders like Apple, Samsung, and companies such as Back Market and Gazelle are capitalizing on these trends by providing certified pre-owned devices with customer assurances, further boosting the market.
Furthermore, there is rise in popularity of e-commerce platforms such as Amazon, eBay, Flipkart, and specialized sites like Swappa, where consumers can buy, sell, and trade refurbished and second-hand phones with ease. These platforms offer the convenience of shopping from home, as well as tools like ratings and reviews, which enhance trust and confidence in purchasing used devices. In addition, there is shift in preference toward the price points of refurbished and used smartphones. These phones are sold at a much lower price than new models, making them attractive to budget-conscious buyers. The lower prices are especially attractive in emerging markets, where people are more focused on cost. This is expected to drive the growth of the refurbished and used mobile phones market size in the upcoming years.
A refurbished phone is a pre-owned handset that has been returned and restored to good working order so it can be resold. Not all phones described as refurbished are faulty. Some networks and retailers classify refurbished phones as handsets that were returned by users/customers who typically changed their minds within the 30-day cooling-off period after signing up for a contract. Tests carried out by the seller typically include whether the battery charges and checking the buttons and cameras work. The seller will also verify audio quality and screen responsiveness, as well as how the phone connects to Wi-Fi and 4G, and 5G.
The report provides comprehensive refurbished and used mobile phones market insights, analyzing growth prospects, restraints, and trends in global analysis of the global refurbished and used mobile phones market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global refurbished and used mobile phones market share.
Rise in demand for consumer electronics through various sources such as online and offline sales channels, consumption of used and refurbished mobile phones has increased significantly over the upcoming years. Furthermore, the continuous use of smartphones has increased the need for constant device checking for professional and educational purposes. Whether checking Instagram, Facebook, email or perhaps sending a quick bill through a banking app, the time spent on smartphones is becoming more prevalent.
In addition, COVID-19's effects on the economy and the growing market for affordable smartphones increased the demand for refurbished and used mobile phones. Hence, key players undertook a large number of initiatives in form of introducing a range of refurbished phones to meet consumer demand. For instance, in November 2021, Huawei started selling certified refurbished premium smartphones in its official online store in China. As result, interested customers could easily buy high-end HUAWEI devices at reduced price tags. Further, these devices undergo strict ‘Huawei quality’ inspections that will offer a 1-year warranty claim. Also, the company has currently listed 8 models of refurbished smartphones for sale. Such factors have propelled the refurbished and used mobile phones industry growth.
Buying refurbished mobiles from top brands such as Apple, one plus, Mi, Samsung, and Vivo by paying the full price together can affect savings for emergencies. However, purchasing used mobile phones on EMI ensures sufficient savings at all points in time. Furthermore, there has been an increase in the number of companies providing EMI options for mobile phones accessories, such as buy now pay later (BNPL) from merchants phone Flipkart, Amazon, Paytm, and others. Buy now pay later is becoming one of the fastest-growing online payment methods for buying refurbished devices. As refurbished and used mobiles are adopted by every income group at affordable rates and easy EMI options on their official websites, resellers are encouraged to sell and deliver phones at discounted rates.
For instance, in December 2022, Payment merchant Zest money introduced a no-cost EMI solution for buying a used mobile phone in installments with no extra cost. Hence, customers are rapidly shifting toward the adoption of refurbished phones for the latest models with no-cost EMI options. Such strategic initiatives will play a crucial role in expanding the growth outlook of the used and refurbished mobile phones market.
The refurbished and used mobile phones market is segmented into type, price range, application, and region. By type, the market is bifurcated into refurbished phones and used phones. By price range, it is divided into low-priced, mid-priced, and premium. By application, it is bifurcated into individuals and businesses. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[TYPEGRAPH]
Depending on type, the refurbished phones segment dominated the refurbished and used mobile phones market share in 2022 and is expected to remain dominant during the forecast period, owing to increase in popularity of refurbished smartphones among end users consumers. Further, large number of key players offering refurbished mobile at affordable rates, along with an increase in the availability of different refurbished models is expected to influence the market growth during the forecast period.
However, the used phones segment is expected to witness the highest refurbished and used mobile phones market growth in the upcoming years, owing to presence of range of options for selling a device in coming years. A large number of retail shops or second-hand device specialists are adopting the practice of selling used smartphones owing to the better profit margin. This drives market growth.
[REGIONGRAPH]
Region wise, the refurbished and used mobile phones market forecast was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to increased e-commerce sales, advancements in logistical services, and the simplicity of payment alternatives such as buy now pay later services have to contributed to the market’s growth, thereby driving the market growth across the Asia-Pacific region.
The global refurbished and used mobile phones industry is dominated by key players such as Apple Inc., Amazon, Samsung, Verizon Communications, Inc, Cashify, Walmart, eBay, Paytm, Huawei, AT&T Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
The end users are more expected to shift towards refurbished smartphones owing to the increasing concerns about a safe environment from electronic waste (or e-waste), which is one of the biggest environmental problems faced today. The term e-waste encompasses any device that uses a battery or electricity to function, from large household appliances such as fridges and washing machines to smartphones, tablets, and wearables. Estimates differ slightly, but the production of e-waste is 50 million metric tons every year. Around 10% of the total is made up of small electronics such as smartphones, and that percentage is expected to rise.
Further, growing awareness among consumers to lower the e-wastes is expected to boost the adoption of refurbished and used mobile phones. Furthermore, end-user adoption of refurbished and used mobile phones has increased in recent years due to several factors which include:
However, some consumers may still have concerns about the reliability and performance of refurbished phones and may prefer to purchase new devices. Despite these challenges, the end-user adoption of refurbished and used mobile phones is expected to continue to grow in the coming years.
Digital capabilities in the refurbished and used smartphone market refers to the technology, features, and functionalities of refurbished and used devices. These capabilities can impact end-user adoption and demand for refurbished and used phones. Some of the key digital capabilities in the refurbished and used smartphone market include:
Overall, the digital capabilities of refurbished and used smartphones play a crucial role in determining their end-user adoption and demand in the refurbished and used mobile phones market.
Favorable government support and an increase in environmental consciousness among end-users impact the demand for the global refurbished and used mobile phone market. Globally, the government is making strategic efforts to intensify the use of refurbished mobiles and tablets due to the fact that e-waste generation is frequently growing all over the world. In addition, different regional governments often collaborate with institutes to increase awareness among people about refurbished smartphones and ensure that e-waste is precisely recycled. For instance, in March 2022, the Indian Government collaborated with one of the premier research institutions, Bhabha Atomic Research Centre (BARC) to develop several highly energy-efficient and cost-effective e-waste recycling technologies, making them commercially viable. Hence, the increase in government role for monitoring e-waste generation and efforts to reduce the e-waste amount is expected to influence the refurbished and used mobile phones market growth.
Furthermore, the constant upgradation and faster obsolescence of smartphones make consumers discard their new products quickly. As a result, there is large accumulation of e-waste is witnessed worldwide, especially due to fast-growing ICT. According to the Global E-waste Monitor 2020, e-waste is the fastest-growing stream in India with generation of 3.2 million tons of e-waste a year, and therefore, making the third largest after China and the U.S. This further propelled the interest of government to promote the use and adoption of refurbished and used smartphone with other electronic products, which in turn, driving the refurbished and used mobile phones market forecast period.
Key Market Segments
Key Market Players