Refurbished and Used Mobile Phones Market Targets Emerging Markets for Growth

The global refurbished and used mobile phones market is poised for substantial growth, with market size expected to leap from US$51.9 billion in 2022 to US$123.9 billion by 2030, expanding at a CAGR of 11.5% between 2023 and 2030.

𝐂𝐥𝐢𝐜𝐤 𝐇𝐞𝐫𝐞 𝐅𝐨𝐫 𝐌𝐨𝐫𝐞:

https://www.fairfieldmarketresearch.com/report/refurbished-used-mobile-phones-market

Quick Report Digest

Rising Popularity of Used Smartphones: The key trend anticipated to fuel market growth is the increasing popularity of used smartphones.

Consumer Dependency: The global rise in consumer dependency on smartphones is a major driver. Smartphones have become essential for communication, work, entertainment, and productivity. This growing reliance prompts consumers to seek cost-effective options, spurring demand for refurbished and used devices.

Market Share of Used Phones: Used phones dominate the market due to their lower cost and broad appeal to budget-conscious consumers. Their affordability and accessibility make them the preferred choice for many buyers.

Dominance of Mid-Price Phones: Mid-price phones ($200 to $500) dominate the market due to their broad consumer appeal. They offer affordability and cater to a wide range of budget-conscious buyers, making them the most sought-after segment.

Individual Applications: Individual applications have secured the largest market share, catering to diverse personal needs such as communication, entertainment, and productivity.

North America’s Market Leadership: North America is the largest market due to its tech-savvy population, strong demand for the latest technology, and the presence of established refurbishment programs and trusted resale channels.

Fastest Growth in Asia Pacific: Asia Pacific is experiencing the fastest CAGR due to its large and diverse consumer base, increasing digital penetration, and growing environmental awareness.

Warranty Limitations: The limitation in the warranty period of refurbished and used smartphones poses a challenge, deterring potential buyers concerned about device reliability. Offering longer warranties or transparently communicating conditions can help build consumer trust.

A Look Back and a Look Forward - Comparative Analysis

The market is growing due to factors like increasing awareness of cost savings, environmental concerns, and the availability of certified, high-quality pre-owned devices. Advancements in smartphone technology have slowed, making slightly older models more appealing. E-commerce platforms and manufacturer-backed refurbishment programs have contributed to market expansion, offering reliable options for budget-conscious consumers.

Historically, the market witnessed staggered growth from 2018 to 2022, driven by substantial growth in major end-use sectors such as individuals and businesses. Companies can capitalize on opportunities by offering certified refurbishment services, building online marketplaces, or participating in trade-in programs. They can target sustainability-conscious consumers and explore partnerships with manufacturers for supply chain integration.

The future looks promising, with expected growth driven by increasing demand for cost-effective and environmentally friendly options. Advancements in phone durability and reliability, coupled with expanded trade-in and refurbishment programs, will likely drive growth. As 5G technology becomes more prevalent, older 4G devices will flood the secondary market, offering a wider range of affordable choices.

Key Growth Determinants

Rise in Consumer Dependency on Smartphones: The rise in consumer dependency on smartphones globally is a significant driver. As consumers increasingly rely on these devices, they seek cost-effective alternatives to upgrade or replace their current smartphones. Refurbished and used phones offer a budget-friendly option without compromising functionality.

Moreover, growing environmental awareness has spurred interest in recycling and reusing electronics, aligning with the sustainability goals of consumers and manufacturers. This, coupled with the longer lifespan of smartphones, creates a thriving market for refurbished and used mobile phones, providing accessible choices and reducing electronic waste.

Increasing EMI/Finance Options: The increase in companies offering EMI options for phones is driving the market by making these devices more affordable and accessible to a wider consumer base. EMI options help mitigate the upfront cost barrier, encouraging consumers to opt for refurbished or used models. This trend fosters greater adoption and fuels demand, especially among budget-conscious buyers seeking flexible payment solutions.

Growing Inclination Toward Online Shopping: The increasing adoption of e-commerce platforms by both buyers and sellers is a significant driver. Online marketplaces provide a convenient and transparent way for consumers to browse, compare, and purchase pre-owned devices. For sellers, e-commerce platforms offer a vast and global reach to showcase their refurbished products. This digital shift has expanded the market's reach, improved accessibility, and fostered trust, accelerating demand as a reliable and cost-effective alternative for tech-savvy consumers.

Major Growth Barriers

Scarcity of Top Models: The scarcity of top models in the refurbished market presents a challenge. High-demand flagship models may not be readily available in refurbished condition, limiting consumer choices. This can lead to potential buyers opting for new devices instead, impacting market growth. Sellers and refurbishers must source and refurbish top models more effectively to meet consumer demands and maintain competitiveness.

Limitation in Warranty Period: The limitation in the warranty period of refurbished and used smartphones poses a challenge. Reduced warranty durations could discourage prospective customers who prioritize post-purchase assistance and product reliability. Market players must offer extended warranty options or improve transparency of product conditions to build consumer trust and confidence. Ensuring longer warranty coverage can mitigate this challenge and encourage more consumers to consider refurbished and used smartphones as viable alternatives to new ones.

Key Trends and Opportunities

5G Adoption: The adoption of 5G technology in the market is a significant trend. As newer 5G-capable smartphones become mainstream, older 4G models are increasingly available in the refurbished market. This shift provides consumers with access to more affordable 4G devices while driving demand for 5G models in the primary market. Offering a diverse range of refurbished options caters to different consumer preferences.

Manufacturer-backed Refurbishment Programs: These programs are gaining prominence. Leading smartphone manufacturers establish these programs to refurbish and certify their own devices, ensuring quality, reliability, and post-sales support. This boosts consumer confidence, drives brand loyalty, and expands the availability of high-quality used smartphones, shaping market growth and trust.

E-commerce Integration: E-commerce integration is transforming the market. Online marketplaces and platforms have become central to buying and selling pre-owned smartphones. This trend offers consumers a convenient and transparent way to access a wide range of refurbished devices while sellers benefit from global reach and efficient sales channels. E-commerce integration is expanding market accessibility and reshaping consumer engagement with refurbished and used mobile phones.

Regulatory Scenario

The regulatory scenario significantly shapes the market by influencing consumer confidence, environmental sustainability, and fair business practices. Consumer protection laws ensure buyers are well-informed about the condition and warranty of refurbished devices, enhancing trust. E-waste management regulations promote responsible disposal and recycling, compelling businesses to adopt eco-friendly practices and reducing the environmental footprint of discarded electronics. Data privacy laws necessitate stringent data erasure procedures to safeguard personal information of previous device owners, building trust among consumers.

Fairfield’s Ranking Board

Top Segments:

Used Phones Category: Dominant due to affordability and accessibility. Consumers prioritize cost savings, and used devices are often lower-priced compared to certified refurbished models.

Mid Price Phones ($200 to $500): Captured the largest market share due to affordability and broad consumer appeal. These products cater to budget-conscious consumers in emerging markets and those seeking cost-effective alternatives.

Individual Application Segment: Captured the largest market share due to widespread appeal and versatility. Devices cater to diverse needs including personal use, communication, entertainment, and productivity.

Regional Frontrunners:

North America: Largest market due to tech-savvy population, strong demand for latest technology, and established refurbishment programs and resale channels.

Asia Pacific: Fastest-growing market due to large and diverse consumer base, increasing digital penetration, and growing environmental awareness.

Competitive Landscape

The market is consolidated with major players introducing new products and enhancing distribution channels to expand their global presence. Expected consolidation over the coming years. Key players include Apple, Samsung, Amazon Renewed, Gazelle, Best Buy, Decluttr, Back Market, Swappa, Glyde, BuyBack World, GameStop, uSell, eBay, GreenBuyback, and Quick Mobile Fix.

Significant Company Developments:

New Product Launches:

May 2022: Phixman collaborated with Detel to offer refurbished premium smartphones with a warranty and accessories across PAN India centers.

April 2022: Samsung's Renewed online store added the Galaxy S21 series, offering refurbished devices at budget-friendly prices.

Distribution Agreement:

March 2022: Apple added iPhone 12 and iPhone 12 Pro models to its Certified Refurbished store, offering new batteries, outer shells, and a one-year warranty.

Analyst's Perspective

Demand and Future Growth: Market demand continues to rise as consumers seek cost-effective and sustainable alternatives. Advancements in refurbishment technologies, manufacturer-backed programs, and e-commerce integration drive this trend. Prioritizing affordability and reduced electronic waste, the market is anticipated to expand, offering accessible options and contributing to a more sustainable tech ecosystem.

Supply Side: Leading regions/countries include North America, Asia Pacific, and Europe. Raw materials required include components like batteries, screens, casings, circuit boards, and connectors. Major suppliers include Samsung SDI, LG Chem, Panasonic, and specialized suppliers providing high-quality components for refurbishment processes.

Market Segmentation

By Type:

Refurbished Phone

Used Phone

By Price Range:

Low Price (Below $200)

Mid Price ($200 to $500)

Premium (Above $500)

By Application:

Individual

Businesses

By Geographic Coverage:

North America: U.S., Canada

Europe: Germany, U.K., France, Italy, Turkey, Russia, Rest of Europe

Asia