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The global market segment for refurbished and used mobile phones, as reported by Custom Market Insights, was estimated to be around $52 billion in 2021. This market is expected to grow to an approximate size of $146 billion by 2030.
A refurbished phone often refers to a previously used device that has been returned for various reasons and then repaired to be resold. Consumers looking to save money when purchasing a smartphone often consider refurbished devices as an affordable alternative. Nowadays, refurbished mobile phones are gaining popularity, supported by reliable resellers. These smartphones may exhibit some cosmetic imperfections such as dents and scratches but function excellently and typically come with a warranty from the reseller.
The consumption of used and refurbished mobile phones is expected to see significant growth in the coming years due to the increasing popularity of consumer electronics through various online and offline sales channels. This market is expanding due to the exponential growth of digital content.
Smartphones have become embedded in all aspects of human life, from facilitating communication to promoting e-commerce and accelerating digitization. Modern, tech-savvy consumers prefer advanced and pricey technology. The market for refurbished and used mobile phones is growing rapidly for various reasons, including the overall popularity of smartphones, rising incomes, and increased environmental awareness. The presence of numerous resellers also promotes the growth of this industry.
Factors Driving Growth:
Explosive growth of digital content.
The global market for refurbished and used mobile phones is expanding due to the unprecedented increase in digital content. Smartphones have proven to be essential tools, from communication to e-commerce, to the digitization of various aspects of our lives.
Consumer demand for affordable goods.
The growing number of consumers looking for budget-friendly alternatives is driving the market for refurbished and used mobile phones. This option provides customers access to high-quality devices at affordable prices. With the growing reliance on electronic devices in emerging countries, the global market for refurbished and used mobile phones is expected to flourish.
The everyday use of smartphones is no longer limited to teenagers and students; professionals and people of all ages rely on their devices to perform work and daily responsibilities. Smartphones have played a crucial role in the lives of nearly everyone, stimulating the demand for smartphones and, in turn, the refurbished smartphone market.
To meet consumers' rising technical expectations, smartphone manufacturers in emerging economies remain engaged in research and development to produce high-quality mobile phones. This is expected to further expand the market for refurbished and used mobile phones. Additionally, rapid urbanization, the expansion of brands with affordable pricing, and the growing demand for high-quality features at competitive prices will drive the market. Furthermore, initiatives and regulations related to green projects and e-waste management will continue to fuel demand in the global market for refurbished and used mobile phones.
Both consumers and organizations are looking for ways to save costs when purchasing mobile phones. In this context, both individuals and businesses can benefit from cost savings by using refurbished and used mobile devices. Manufacturers assist customers in finding affordable second-hand mobile phones. The emergence of 5G technology is expected to continue driving demand for refurbished and used mobile phones and accessories in the future.
In the Asia-Pacific and Middle East regions, businesses offering alternative payment methods for phones and mobile phone accessories, such as "Buy Now, Pay Later", are becoming increasingly numerous. This approach is quickly becoming one of the most popular ways to pay for refurbished equipment online in these regions, where "Buy Now, Pay Later" startups collaborate with digital wallet service providers to expand their market share.
Xiaomi has recently intensified its domestic production of smartphones and smart TVs in India. The company has announced new partners, including BYD and DBG Technology from China, for smartphone production. Additionally, Xiaomi has appointed Radiant Technology in Hyderabad as its second production partner after Dixon for domestic smart TV production.
This comprehensive report provides insight into the dynamics and developments in the market for refurbished and used mobile phones, allowing stakeholders to understand and respond to trends in this emerging sector.