Global Refurbished Smartphone Market 2024–2033

Reports Description

As per the current market research conducted by CMI Market Research Team, the global Refurbished Smartphone market is expected to record a CAGR of 11.2% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 64.30 billion. By 2032, the valuation is anticipated to reach USD 185.89 billion.

The refurbished smartphone market refers to the buying and selling of used smartphones that have been restored to a functional and presentable condition. These devices undergo a thorough inspection, repair, and testing process to ensure they meet quality standards. Refurbished smartphones are often sold at a lower price compared to new devices, making them an affordable option for consumers. The market includes various players such as manufacturers, retailers, online platforms, and specialized refurbishing companies that engage in refurbishing and selling these pre-owned smartphones.

Refurbished Smartphone Market – Significant Growth Factors

The refurbished smartphone market offers significant growth opportunities due to several factors:

• Affordability: Refurbished smartphones are typically priced lower than new devices, making them attractive to budget-conscious consumers who still want access to advanced features and technology.

• Sustainability and Circular Economy: The market aligns with the growing consumer demand for sustainable and environmentally friendly options. Refurbished smartphones extend the lifespan of electronic devices, reducing electronic waste and promoting a circular economy.

• Improved Quality and Warranty: Many refurbished smartphones undergo rigorous testing and repair processes, ensuring that they meet quality standards. Sellers often provide warranties and customer support, enhancing consumer confidence and reducing concerns about purchasing used devices.

• Technological Advancements: As new smartphone models are released, previous generations become available in the refurbished market. This allows consumers to access advanced technology at a more affordable price point.

• Emerging Markets: The refurbished smartphone market presents significant opportunities in emerging markets where cost sensitivity is high, and brand-new devices may be financially out of reach for many consumers. Refurbished smartphones offer a more accessible entry point into the smartphone market.

• Online Retail and E-commerce: The rise of online retail platforms and e-commerce has facilitated the growth of the refurbished smartphone market. Consumers can easily browse and compare options, and sellers can reach a wider audience.

• Partnerships and Distribution Channels: Manufacturers, retailers, and refurbishing companies are increasingly partnering to expand their reach and tap into the growing demand for refurbished smartphones. This includes collaborations with mobile network carriers, online platforms, and authorized resellers.

Overall, the combination of affordability, sustainability, improved quality, technological advancements, and market expansion provides significant growth opportunities for the refurbished smartphone market.

Refurbished Smartphone Market – Mergers and Acquisitions

The refurbished smartphone market has witnessed several mergers and acquisitions, as companies seek to strengthen their position, expand their offerings, and capitalize on the market’s growth potential. Some notable examples include:

• Apple’s Acquisition of Refurbished Devices: Apple has acquired refurbished device companies like PowerON Services and certain assets of Global Service Exchange (GSX) to enhance its refurbishment capabilities and support its Certified Refurbished program.

• Assurant’s Acquisition of HYLA Mobile: Assurant, a global provider of risk management solutions, acquired HYLA Mobile, a leading provider of smartphone trade-in and upgrade programs. This acquisition allows Assurant to expand its presence in the refurbished smartphone market and leverage HYLA Mobile’s expertise.

• Brightstar’s Acquisition by SoftBank: SoftBank, a multinational conglomerate, acquired Brightstar Corp., a global provider of mobile device lifecycle management solutions. This acquisition enabled SoftBank to strengthen its position in the refurbished smartphone market and leverage Brightstar’s extensive distribution network.

• Back Market’s Funding and Expansion: Back Market, an online marketplace for refurbished electronics, has secured significant funding to support its expansion plans. The company has raised funds through various rounds of financing, allowing it to expand its operations, reach more customers, and strengthen its position in the market.

• Gazelle’s Acquisition by ecoATM: In 2015, ecoATM, a provider of automated self-serve kiosks for buying back used electronics, acquired Gazelle, a prominent player in the refurbished smartphone market. This acquisition brought together two leaders in the pre-owned device industry and expanded ecoATM’s offerings.

These mergers and acquisitions highlight the strategic moves made by companies to enhance their refurbishment capabilities, expand their market presence, and capitalize on the growing demand for refurbished smartphones.

The consolidation of industry players through such transactions can lead to synergies, improved operational efficiency, and a stronger competitive position within the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

U.S. Refurbished and Used Mobile Phones Market	Latin America Refurbished and Used Mobile Phones Market	Global Refurbished and Used Mobile Phones Market
CAGR 12.90% (Approx)	CAGR 12.77% (Approx)	11.45% (Approx)
US$ 23.61 Billion by 2032	US$ 8.79 Billion by 2032	USD 146.43 Billion by 2032

Refurbished Smartphone Market – Significant Threats

While the refurbished smartphone market presents significant growth opportunities, there are also some notable threats that industry players need to navigate:

• Counterfeit Products: The presence of counterfeit refurbished smartphones poses a significant threat to the market. Counterfeit devices may not undergo proper refurbishment processes, compromising quality and potentially leading to negative customer experiences. This can erode consumer trust in the refurbished market as a whole.
• Competition from New Devices: The continuous release of new smartphone models can divert consumer attention away from refurbished options. The allure of the latest features and technology in new devices may make it challenging for refurbished smartphones to compete, especially among tech enthusiasts and early adopters.
• Brand Loyalty and Pre-Owned Perception: Consumers with strong brand loyalty may prefer to purchase new devices directly from the original manufacturer, despite the higher cost. Additionally, some consumers may still perceive pre-owned devices negatively, associating them with lower quality or a lack of warranty coverage.
• Limited Supply and Quality Variability: The availability of specific refurbished smartphone models can be limited, depending on factors such as market demand and supply chain availability. In some cases, the quality of refurbished devices may vary, leading to inconsistent customer experiences. Maintaining consistent quality standards is crucial to mitigate this threat.
• Rapid Technological Advancements: The rapid pace of technological advancements in the smartphone industry poses a challenge to the refurbished market. As new features and technologies become mainstream, older models may become less desirable, impacting the demand for refurbished devices.
• Regulatory and Legal Challenges: Compliance with regulations related to the refurbishment and resale of electronic devices can pose challenges for industry players. Ensuring compliance with data privacy, safety, and environmental regulations is essential to mitigate legal risks.
• Consumer Perception and Education: Educating consumers about the benefits and reliability of refurbished smartphones remains crucial. Many potential customers may have misconceptions about the quality and longevity of refurbished devices, hindering adoption and growth.

Navigating these threats requires industry players to address quality concerns, build consumer trust through transparent processes, educate consumers about the benefits of refurbished smartphones, and continuously innovate to provide competitive offerings. Adapting to market dynamics and investing in customer satisfaction are key strategies to overcome these challenges.

Report Scope

Feature of the Report	Details
Market Size in 2023	USD 76.45 Billion
Projected Market Size in 2032	USD 185.89Billion
Market Size in 2022	USD 64.30 Billion
CAGR Growth Rate	11.2% CAGR
Base Year	2023
Forecast Period	2024-2033
Key Segment	By Type, Price Range, Application, and Region
Report Coverage	Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope	North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options	Request tailored purchasing options to fulfil your requirements for research.

Category-Wise Insights

By Type:

The refurbished phones segment dominated the refurbished and used mobile phones market share in 2023 and is expected to maintain its dominance throughout the forecast period. This is primarily due to the increasing popularity of refurbished smartphones among end consumers.

The market is influenced by a wide range of key players offering affordable rates for refurbished mobiles and the availability of various refurbished models. On the other hand, the used phones segment is projected to experience the highest growth in the refurbished and used mobile phones market in the coming years. This growth is driven by the presence of numerous options for selling used devices, with many retail shops and second-hand device specialists adopting the practice of selling used smartphones due to the higher profit margin it offers.

By Application:

Individual Consumers: This segment includes individual customers who purchase refurbished smartphones for personal use. Some key factors driving the demand among individual consumers include:

1. Affordability: Refurbished smartphones provide a cost-effective alternative for individuals who want access to advanced features and technology at a lower price point compared to new devices.
2. Value for Money: Refurbished smartphones offer a good value proposition, as they are often restored to a high-quality condition, come with warranties, and provide a similar user experience to new devices.
3. Environmental Consciousness: Increasing environmental awareness among individuals drives the demand for refurbished smartphones as a sustainable choice, helping to reduce electronic waste.
4. Availability and Variety: The market offers a wide range of refurbished smartphone models and brands, allowing individual consumers to choose according to their preferences and budget.

Businesses: This segment comprises businesses and organizations that purchase refurbished smartphones for various purposes, such as employee use, testing and development, or as affordable communication devices. Key factors influencing the demand among businesses include:

1. Cost Savings: Refurbished smartphones provide cost-effective solutions for businesses, enabling them to equip their employees with reliable devices at a lower investment cost compared to new devices.
2. Bulk Purchase Options: Many refurbishment companies and sellers offer bulk purchase options, making it convenient for businesses to acquire a large number of smartphones for their workforce.
3. Device Testing and Development: Businesses in the mobile industry or app development sector may purchase refurbished smartphones for testing purposes, ensuring the compatibility and functionality of their products.
4. Communication and Secondary Devices: Refurbished smartphones can serve as secondary devices for businesses, such as backup phones, temporary devices for contractors, or specialized communication devices in specific work environments.

Refurbished Smartphone Market – Regional Analysis

The refurbished smartphone market exhibits regional variations in terms of demand, market dynamics, and consumer preferences. Here is a regional analysis of the market:

• North America: North America holds a significant share of the refurbished smartphone market. The region’s strong presence of key players, such as Apple, and the popularity of refurbished devices among budget-conscious consumers contribute to market growth. Additionally, environmental awareness and the preference for sustainable options drive the demand for refurbished smartphones in this region.
• Europe: Europe is another prominent market for refurbished smartphones. The region’s strict environmental regulations, coupled with a strong emphasis on sustainability, contribute to the growth of the refurbished smartphone market. Countries like the UK, Germany, and France have a well-established market for pre-owned and refurbished devices, with consumers appreciating the value and affordability they offer.
• Asia Pacific: The Asia Pacific region is experiencing significant growth in the refurbished smartphone market. Factors such as the large population, rising smartphone penetration, and increasing demand for affordable devices contribute to market expansion. Countries like India and China are key contributors to the growth, with a growing number of players entering the market and offering refurbished smartphones at competitive prices.
• Latin America: Latin America presents opportunities for growth in the refurbished smartphone market. The region’s price-sensitive consumer base, coupled with the presence of established players and e-commerce platforms, contributes to market development. Countries like Brazil and Mexico are key markets in this region.
• Middle East and Africa: The Middle East and Africa region also show potential for the refurbished smartphone market. The demand is driven by factors such as affordability, the presence of price-sensitive consumers, and the popularity of online platforms for purchasing refurbished devices. Countries like the UAE, Saudi Arabia, and South Africa are significant contributors to the market growth in this region.

Competitive Landscape – Refurbished Smartphone Market

The competitive landscape of the refurbished smartphone market is dynamic and features a mix of established players and emerging companies. Key players compete based on factors such as product quality, pricing, brand reputation, distribution networks, and customer support. Here are some prominent players in the refurbished smartphone market:

• Apple: Apple offers refurbished iPhones through its official website and authorized retailers. The company’s strong brand reputation and commitment to quality make it a significant player in the market.
• Samsung: Samsung sells refurbished smartphones, including Galaxy models, through its official website and authorized channels. The company’s wide range of devices and strong market presence contribute to its competitiveness.
• Amazon: Amazon’s Renewed program offers a wide selection of refurbished smartphones from various brands. The company’s extensive reach and customer trust make it a significant player in the market.
• Back Market: Back Market is an online marketplace that connects buyers with certified refurbished smartphones from different brands. The platform’s focus on quality control and diverse product offerings contribute to its competitiveness.
• Gazelle: Gazelle specializes in buying and selling pre-owned and refurbished smartphones, including iPhones and Samsung Galaxy devices. The company’s trade-in program and convenient selling process position it as a notable player in the market.
• Decluttr: Decluttr is a website that allows individuals to sell and buy refurbished smartphones, including popular brands like Apple and Samsung. The company’s emphasis on customer experience and easy transactions contribute to its competitive position.
• Swappa: Swappa is a platform where individuals can buy and sell used and refurbished smartphones directly. The company’s focus on transparency, seller verification, and buyer protection contributes to its competitiveness.
• eBay: eBay is a popular online marketplace where sellers offer refurbished smartphones from different brands. The platform’s large user base and wide product selection make it a notable player in the market.
• Best Buy: Best Buy operates a trade-in and refurbished smartphone program, providing customers with options to purchase certified pre-owned devices. The company’s strong retail presence and customer trust contribute to its competitive edge.
• Certified Pre-Owned Programs: Mobile network carriers and manufacturers often have certified pre-owned programs, such as Verizon’s CPO program or Apple’s Certified Refurbished program. These programs enhance the competitiveness of carriers and manufacturers in the refurbished smartphone market.

The competitive landscape is subject to change, with new players entering the market and existing players expanding their offerings. Adapting to customer preferences, ensuring quality refurbishment processes, and providing competitive pricing and customer support are key strategies for companies in the refurbished smartphone market.

The Refurbished Smartphone Market is segmented as follows:

By Type Analysis

• Refurbished Phones
• Used Phones

By Pricing Range Analysis

• Low-priced Refurbished and Used Mobile Phones (Less than $200)
• Mid-Priced Refurbished and Used Mobile Phones ($200-$500)
• Premium Refurbished and Used Mobile Phones (More than $500)

By Sales Channel Analysis

• Online/ e-Commerce Sales of Refurbished and Used Mobile Phones
• Refurbished and Used Mobile Phones Sold at Physical Retail Stores

By Application Analysis

• Individual
• Businesses

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America