Each year, the used and refurbished smartphone market expands worldwide. What factors are driving this growth, and how do experts predict the market will evolve in the future? Today, we answer these questions and explore the main trends in the mobile phone market. Read our research to gain valuable insights for your business.
Used and Refurbished Smartphone Market Overview
Although the growing trend is undeniable, the mobile phone market size varies depending on the research institution. For example, Expert Market Research estimates the market value in 2023 to be $62.48 billion, whereas Persistence Market Research reports it to be $55.74 billion.
Predictions for market growth also differ: the market is expected to be valued at $123.9 billion by 2030 (Fairfield Market Research), $110.72 billion by 2032 (Expert Market Research), $185.89 billion by 2032 (Custom Market Insights), and $172.09 billion by 2033 (Persistence Market Research).
The compound annual growth rate (CAGR) also varies across sources, despite the clear positive growth trend. It is expected to be 6.5% between 2024 and 2032 (Expert Market Research), 11.2% between 2023 and 2032 (Custom Market Insights), 11.2% between 2022 and 2031 (Allied Market Research), and 7.6% between 2024 and 2029 (Mordor Intelligence).
Overall, the CAGR trend shows that the refurbished and used mobile phone market is strong and has significant potential.
Factors that Drive Used and Refurbished Smartphone Market Growth
To benefit from the rapid mobile phones market growth, it's crucial to understand its reasons. The factors driving this exponential growth include:
Increased Global Smartphone Use
Approximately 85-90% of the population now owns smartphones, with the vast majority using their devices daily. This high level of smartphone ownership creates strong demand for both new and pre-owned devices. Additionally, people tend to upgrade their smartphones every 2 to 3 years, resulting in hundreds of thousands of devices entering the used or refurbished market.
Improved Quality of Used and Refurbished Phones
Used and refurbished smartphones can be in perfect working condition and are often indistinguishable from brand-new devices. Modern repair and refurbishment processes ensure high quality in pre-owned electronics. Moreover, these devices usually come with testing certificates and extended warranties, increasing customer trust.
Affordability of Pre-Owned Tech
Compared to new devices, pre-owned options are significantly more affordable. As new smartphone models are released each year, more people opt for these less expensive but high-quality alternatives instead of chasing the latest trends. There are also premium refurbished devices that, while less affordable than other pre-owned options, are still cheaper than brand-new devices.
Sustainability Awareness
The increasing global demand for environmentally friendly options has affected multiple industries, including the pre-owned smartphone market. People are increasingly choosing second-hand options, which extend the lifespan of devices. As a result, the refurbished and used mobile phone market helps reduce overproduction and electronic waste, promoting conscious and sustainable consumption.
Widespread Availability of E-Commerce Platforms
Marketplaces have significantly influenced the industry: now, customers have a wider range of options and are no longer limited to local phone stores. Additionally, businesses can use these online platforms to sell their products across different countries, reaching a global audience.
Regional Differences of the Used and Refurbished Smartphone Market
Market dynamics vary a lot by region due to differences in consumer demand, economic and regulatory conditions, and local competition. Understanding the refurbished mobile phone market in your country is crucial for developing an effective business strategy. Let's explore the differences among the largest regional markets.
Northern America
The American market is the strongest in the used and refurbished electronics industry, holding the largest market share. According to Fairfield Market Research, the CAGR of the Northern American refurbished smartphone market is expected to be 14.8% between 2023 and 2030.
Due to rapid technological advancements and a high level of purchasing power, people frequently upgrade their smartphones. This behavior leads to an increased supply of pre-owned devices available on the market. The wide variety of phones at attractive prices stimulates customer demand.
Moreover, the popularity of sustainability initiatives in North America encourages the use of refurbished smartphones. Growing awareness of environmental issues encourages conscious consumption and supports circular economy principles.
Asia–Pacific
The refurbished and used mobile phone market is steadily growing due to a large population and the growing adoption of digital technologies. High customer demand for affordable smartphones makes competitive pricing a key advantage in the market.
According to Fairfield Market Research, the Asia–Pacific region holds a significant market share, valued at 36.5%. Consequently, more businesses are entering the market, intensifying competition.
Europe
The European market is prominent, with an expected CAGR of 9.8% from 2024 to 2033, according to Custom Market Insights. The countries with the largest market shares in the region are Germany, the UK, and France.
The growth of the secondary smartphone market in Europe is driven by sustainability and cost efficiency. Additionally, regional regulations support the industry because of its positive environmental impact.
Used and Refurbished Mobile Phones Market Trends
The global refurbished and used device market is steadily growing, showing strong trends. Understanding them is essential for building efficient business strategy and scaling your company. Here are the main trends in the used and refurbished smartphone market:
- Increasing Presence on Marketplaces: The rise of used and refurbished phone businesses on online platforms has become a prominent source of income. Selling on these platforms helps companies reduce expenses and reach customers worldwide.
- Diversification of the Secondary Smartphone Market: Pre-owned devices from strong, trend-driven markets with short product lifecycles are increasingly sold to emerging markets where there is high demand for affordable electronics.
- Growing Demand for Certified Pre-Owned Devices: Businesses need to address customers' concerns in pre-owned device quality, and testing certificates are a way to do so. Independent validation of functional and cosmetic conditions is crucial when buying used or refurbished smartphones.
To ensure the quality of your inventory, consider implementing the NSYS Diagnostics solution. The software performs more than 60 tests to detect over 100 hardware defects. For each tested device, you receive a certificate with all testing results. You can share the certificate with your customers as proof of device condition. Click the button below to try NSYS Diagnostics!
