Used and Refurbished Smartphone Market Size, Forecast [2031]

Report Description

The global used and refurbished smartphone market size was valued at USD 50.5 Billion in 2022 and is projected to reach USD 139.08 Billion by 2031, expanding at a CAGR of 11.9% during the forecast period, between 2023 and 2031. Increasing demand for pocket-friendly second-hand phones in the world is driving the global used and refurbished smartphones market.

Rising adoption of used and refurbished phones and consumer electronics of good quality among consumers is expected to propel the used and refurbished smartphone market. During the pandemic, a lot of people opted for low-cost mobile phones, which boosted the demand for refurbished smartphones. The ability to provide affordable smartphones without quality compromising is expected to open immense possibilities for the market. 

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The rising number of smartphone users is propelling the need for refurbished smartphones. Refurbished smartphones are properly tested by the reseller and certified. it also helps to maintain environmental sustainability as refurbishing a smartphone means that companies are expanding the life span of the phone, which in turn helps to lessen the production of new smartphones.

The market report finds that the COVID-19 pandemic has severely impacted the market. The initial phase of the pandemic resulted in a significant drop in market revenue as there was a shortage of supply of parts by the companies to refurbish devices. For instance, China has the biggest refurbished products market, however, the pandemic has critically impacted the market. China provides parts that are used to bring equipment up to grade and prepare them for sale on the refurbished market. China further serves a huge demand for defective and damaged devices because the buyers in the country have repairing capabilities.

However, the pandemic had a positive impact on the market, for example, in March 2020, Apple Inc. reopened 42 of its branded retail stores in China. Those shops were closed in early February due to restrictions imposed to control the outbreak.

Used and Refurbished Smartphone Market Dynamics

Major Driver 

High availability of affordable used and refurbished smartphones is projected to drive the market. Refurbished smartphones are repaired and fixed to be sold at lower prices thus, the demand for used and refurbished smartphones is increasing. The growing use of refurbished smartphones is expected to lessen the environmental impact of producing new smartphones which is expected to boost the market in the forecast period.

Existing Restraint 

Rising concerns about the limited warranty provided in the refurbished smartphones are expected to restrain the market. Refurbished phones usually come after testing, repairing, and fixing the parts and with a limited warranty which is expected to restrain the market.

Moreover, the low-performance level of refurbished as compared to new smartphones is expected to restrain the market. Some companies offer refurbished smartphones in which sometimes cosmetic defects result in quick battery drain or low smartphone performance. These factors are expected to drop the demand for refurbished smartphones in the market.

Emerging Opportunities

Growing adoption of e-commerce platforms to buy and sell affordable smartphones is expected to create lucrative opportunities for the market players. The number of e-commerce purchases is boosting owing to the large usage of tablets, mobile devices, and others, which are creating opportunities for the market. For instance, by December 2022, the most visited e-commerce website was Walmart with around 854.9 million monthly visits.

Moreover, the development of 5G technology for high-speed networks is boosting the demand for smartphones, which is expected to further expected to create opportunities for the market.

Scope of Used and Refurbished Smartphone Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Used and Refurbished Smartphone Market Segment Insights

Type Segment Analysis

Based on type, the used and refurbished smartphone market is classified as refurbished phones and used phones. The refurbished phones segment is further segmented into company-owned and consumer-owned phones. The used phones segment is further segmented into trade-ins and buyback phones.

The refurbished phones held a key share of the market in 2021 in terms of revenue and are estimated to lead the market in the forecast period. The smartphones that are owned by companies and refurbished for sale again are called company-owned phones. These smartphones are cheap and reliable options for businesses and professional individuals.

• For instance, research shows that Apple captured nearly 49% of the refurbished smartphone market in 2022. Thus contributing to the segment growth.

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Pricing Range Segment Analysis

In terms of pricing range, the used and refurbished smartphone market is segmented into low-priced, mid-priced, and premium. The mid-priced segment accounts for a major share of the market in 2021 and is expected to register significant growth during the forecast period.

The high availability of mid-priced cell phones on online platforms with different payment options is boosting the segment. Rising demand from the middle-class population for good quality affordable mobile phones is fueling the market. The mid-priced smartphones offer various conveniences to their users as they are a reliable source and alternative to new smartphones, which contributes to the segment's growth.

Sales Channel Segment Analysis

On the basis of sales channel, the used and refurbished smartphone market is bifurcated into online/e-commerce platforms and physical retail stores. In 2021, sales through the online sales segment were high.

The online platforms segment is anticipated to expand at a rapid pace. This segment generated the highest share of revenue in the used and refurbished smartphone market. Online platforms aid in the comparison of different mobile phones. Hence, people prefer online platforms for purchasing products.

• For instance, in June 2022, Amazon accounted for around 37.8% of e-commerce sales among all the e-commerce companies. The growing use of smartphones to make online purchases is expected to drive the segment.

• For instance, the estimated value of physical retail stores in 2023 worldwide is USD 20.8tr. Thus, such factors are contributing to the segment growth.

Regional Analysis

Based on region, the used and refurbished smartphone market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.

North America is expected to dominate the market during the forecast period. The market share of used and refurbished smartphones is expected to reach around 25% in 2026. The growing demand for advanced technology smartphones is playing a crucial role in the regional market. It is expected that in 2023, 16.4% of retail purchases are going to take place. Furthermore, among various smartphone brands, Apple is the most usable refurbished smartphone. Thus, all these factors are contributing to the market in the region.

Asia Pacific accounted for the largest share of the market in 2021 and is projected to dominate the global market. Increasing demand for refurbished smartphones by consumers in the region is fueling the market. Rapidly growing technology and developing infrastructure are boosting the used and refurbished smartphone market in the region. An increasing number of regulations and laws for recycling waste materials and reducing e-waste are anticipated to propel the market.

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