Demand for used phones continues to grow steadily, creating a strong and well-established market. Several emerging trends are shaping the industry—trends that businesses dealing with pre-owned electronics should closely watch. In this article, we’ll explore these key developments and highlight the challenges that may arise as the industry evolves. Follow along!
The Used Device Market Shows Consistent Growth
The global tendency for market growth remains: reports predict the market value to rise fourfold. However, the estimation of the exact market size differs. Thus, Transparency Market Research claims the secondary electronics industry was worth $93.7 billion in 2023 and is expected to reach $434 billion by 2034. Zion Market Research's predictions are more modest—according to their report, the market size was $46 billion in 2024 and will grow to $189 billion by 2034.
The compound annual growth rate (CAGR) of the secondary phone market for the next ten years is expected to be 15%.
Additionally, The Wall Street Journal reported that over 208 million used phones were sold worldwide, showing a 7.1% increase compared to 2023.
Regional Differences Matter
Local secondary phone markets vary significantly across regions, each developing at its own pace and shaped by unique consumer behaviors and regulatory landscapes. For businesses, adapting services to match regional characteristics is key to success. Today, three major markets define the global secondary phone landscape:
-
North America. It is one of the leading regions in the global secondary phone market. High consumer purchasing power in the U.S. and Canada supports frequent device upgrades, while growing awareness of sustainability encourages more consumers to opt for pre-owned devices.
According to Verified Market Research, the U.S. used smartphone market is expected to reach $12.5 billion by 2031, with a CAGR of around 5.7%.
-
Europe. Europe’s secondary electronics market is driven by strong sustainability values and rigorous quality standards for refurbished technology. Key contributors to growth include the UK, Germany, and France, where consumers are increasingly choosing circular tech options.
According to Research and Markets, the European second-hand electronics market was valued at $61 billion in 2024 and is projected to grow to $93 billion by 2034, with a CAGR of approximately 4.4%.
-
Asia Pacific (APAC). In countries such as China and India, the affordability of pre-owned smartphones makes them appealing to consumers. Thanks to quick digital adoption, the market develops rapidly, and the demand for used electronics grows consistently.
Consegic’s research shows that APAC's refurbished market reached $16 billion in 2024, and is expected to reach $36 billion by 2032.
E-Commerce and Online Marketplaces Are a Promising Sales Channel
Each year, the share of online deals grows, as this sales channel is appealing to both resellers and customers.
Via marketplaces, businesses can easily reach people all over the world, widening their client base. Moreover, online deals usually mean lower expenses, as businesses save money on retail space rental, sales staff salaries, offline promotions, etc. Consumers, on the other hand, receive convenient service with no need to visit physical stores.
To resell on marketplaces, businesses need to verify the quality of the smartphones they offer, ensuring transparent deals and proving the legitimacy of device origin. NSYS Diagnostics is a solution trusted by Back Market, Refurbed, and Amazon Renewed. Testing certificates provided by this software can be used to resell on these platforms.
Businesses Provide Improved Quality and Longer Warranties
As the supply of pre-owned phones grows alongside the demand, businesses have to compete and provide high-quality services to their customers. That usually means offering additional verification of device condition and longer warranties, reassuring clients that the smartphone will last as expected.
How can businesses ensure that the tester has evaluated the smartphone’s condition correctly and that the device won’t break due to an unnoticed defect? By using diagnostic software that provides testing certificates. For example, NSYS Diagnostics runs over 60 tests and detects over 100 hardware failures, offering a complete overview of the device’s functionality. Testing certificates with the result of each test can be used to offer longer guarantee periods to your clients.
What Challenges Does the Used Phone Industry Face?
Among the trends and noticeable features of industry development, it is crucial to understand the difficulties it faces. Every challenge creates an opportunity to grow and outperform competitors, so keeping them in mind is the first step toward successful business development.
What factors are currently holding the industry back?
- High Risks of Fraud: Unless used phones are accurately tested, it’s easy to overlook defects and buy a device of lower quality than expected. The problem of fraud is especially acute for businesses in emerging markets.
The solution might be to use an automated testing solution, such as NSYS Diagnostics, which eliminates human errors and ensures accurate and consistent results. Additionally, thanks to the integration of GSMA Device Check, the software verifies the device’s IMEI number to detect whether the device was lost, stolen, or has any outstanding financial balance. - Import Duties and Taxes: International regulations significantly impact the final price of devices and, in turn, profit margins for businesses. Since most companies in the industry ship devices or components across borders, it’s crucial to account for both existing and potential taxation. Additionally, returns can be especially costly when smartphones must be transported internationally. Accurate and consistent diagnostics help reduce return rates and support more transparent, predictable transactions.
- Consumer Concerns About Pre-Owned Devices: Some consumers still have concerns about used devices, often assuming they may be of lower quality. Testing certificates help businesses demonstrate the condition of these smartphones, increasing customer confidence and promoting awareness of affordable, sustainable, and high-quality pre-owned electronics.
How NSYS Group Supports Used Phone Businesses in Creating High-Quality Services
NSYS Group provides software and robotic solutions that support the development of the industry, helping businesses build a greener, more technological, and more accessible future. The testing solution, NSYS Diagnostics, aligns with market trends by providing comprehensive device evaluation, transparent quality validation, and certified data erasure.
The robotic tool, Reeva, developed by NSYS Group, is ahead of the game. This innovative robot unites all software solutions in one machine, providing complete automation of device processing. To try this cutting-edge technology for your business, click the button below!
