Refurbished and Used Mobile Phones Market Expected to Reach $145.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Refurbished and Used Mobile Phones Market," The refurbished and used mobile phones market was valued at $51.97 billion in 2021, and is estimated to reach $145.9 billion by 2031, growing at a CAGR of 11.2% from 2022 to 2031.

A refurbished and used mobile phones refers to a handset that has been returned by the consumer to the manufacturer which may or may not have kind of fault, which is then repaired by the manufacturer and is sold with a refurb tag. Before sending the device out into the market, the manufacturer ensures that the device has been thoroughly checked, and tested, and is functioning well. A refurbished phone choice depends on who refurbished the phone. There are two types of refurbished phones, including manufacturer-refurbished and seller-refurbished phones. The growth of online platforms offering refurbished smartphones has increased market penetration, especially in emerging economies. The easy availability of refurbished and used mobile phones on e-commerce platforms and the discounts offered to attract new customers. Therefore, a rise in e-commerce platforms creates a demand for refurbished and used mobile phones.

Rise in consumer dependency on smartphone devices globally and increase in the number of companies providing EMI options for phone drive the growth of the market. In addition, the cost-efficient benefits of refurbished and used mobile phones are fueling the growth of the refurbished and used mobile phones market size. However, the scarcity of top models and limitation in warranty period of refurbished and used mobile phones limit the growth of the market. Conversely, rise in adaption of e-commerce platforms among buyers and sellers is anticipated to provide numerous opportunities for the expansion of the market during the forecast period.

Depending on application, the individuals segment held largest share in 2022 and is expected to remain dominant during the forecast period. This is attributed to rise in the introduction of third-party vendors involved in the refurbishment of devices is expected to drive the refurbished and used market for individuals. However, the businesses segment is expected to witness the highest growth in the upcoming years. Business is adopting refurbished and used mobile phones industry as it is featured big benefits from the advanced functionalities of these electronic mobile devices. Such factors are driving the adoption of used phones among business entities.

Region-wise, North America held a significant global refurbished and used mobile phones market share, due to the increase in demand for consumer electronic services. U.S. and Canada currently dominate the regional market for North America. The main growth drivers of the refurbished and used mobile phones market analysis in this region is rise in consumer dependency on smart phone devices globally and increase in the number of companies providing EMI options for phone are the primary factors that drive the growth of the refurbished and used mobile phones market in Asia-Pacific, North America, Europe, and LAMEA.

The impact of the outbreak of COVID-19 resulted in the boost of refurbished and used mobile phones. This comes as the demand for smartphones in general has seen a significant increase with work and education now moving online. Moreover, pandemic had further pushed governments and consumers to adopt refurbished and used smartphones as there was a rise in 5G trend and enhanced high-speed broadband Internet access through fixed wireless access during the pandemic. Such factors were helpful for the refurbished and used mobile phones market during the pandemic.Furthermore, by purchasing a refurbished mobile phone, a second life is given to a device. For instance, in, September 2022, In order to encourage smartphone longevity, reduce e-waste, and save precious resources, Fairphone, a Dutch social venture creating a market for ethical smartphones, began selling refurbished cellphones through its website, the Fairphone 3, new life edition. In addition, the solution is using refurbishing hand phones that will not only help keep these precious resources in the loop for repeated reuse. But it will also reduce the overall carbon impact and recycling costs. Refurbished phones help keep the consumption demand high. On the other end, acceptance of refurbished items will help create employment opportunities for more technicians and engineers. It will also present the opportunity for small businesses to expand. Such developments helped the growth of refurbished and used mobile phones market during Covid-19 period.

KEY FINDINGS OF THE STUDY

• By type, the refurbished phones segment accounted for the largest refurbished and used mobile phones market share in 2021.
• Region-wise, North America generated the highest revenue in 2021.
• On the basis of application, the individual segment generated the highest revenue in 2021.

Key players profiled in the report include Apple Inc., Amazon, Samsung, Verizon Communications, Inc, Cashify, Walmart, eBay, Paytm, Huawei, AT&T Inc. Market players have adopted various strategies, such as investment, product launches, collaboration & partnership, joint ventures, and acquisition to expand their foothold in the refurbished and used mobile phones market forecast.