Dublin, June 07, 2024 (GLOBE NEWSWIRE) -- The "Global Refurbished Mobile Phone Market Outlook, 2029" report has been added to ResearchAndMarkets.com's offering.
The global refurbished mobile phone market is anticipated to cross USD 100 billion by 2029, increasing from USD 64.91 billion in 2023. The market is expected to grow with 7.80% CAGR by 2024-29.
As consumers become more environmentally conscious and financially savvy, the demand for refurbished devices continues to soar. The market for refurbished phones is highly dynamic, with various players contributing to its growth and evolution. Refurbishers, retailers, e-commerce platforms, and mobile carriers all play a role in the distribution and sale of refurbished devices. Additionally, advancements in technology and refurbishment techniques have led to improvements in the quality and reliability of refurbished phones, further fueling market growth.
Key Highlights
- The refurbished phones segment dominated the market share in 2023 and is expected to maintain its dominance throughout the forecast period, primarily due to the increasing popularity of refurbished smartphones among end consumers.
- Mid-priced refurbished and used mobile phones ($200-$350) lead due to their optimal balance of affordability and quality, offering consumers value for money without compromising on performance or features.
- Offline distribution channels lead due to the personalized experience they offer, allowing consumers to inspect devices physically and receive immediate assistance from knowledgeable staff.
- Asia Pacific is experiencing significant growth due to the factors such as the large population, rising smartphone penetration, and increasing demand for affordable devices.
Market Drivers
- Access to Premium Features: Refurbished phones provide consumers with access to premium features and specifications at a more affordable price point. This allows individuals who may not be able to afford new flagship devices to enjoy advanced technology and capabilities. Refurbished phones offer an opportunity for consumers to experience high-end features such as advanced cameras, enhanced processing power, and innovative design, without the premium price tag associated with new devices.
- Warranty and Support: Many refurbished phones come with warranties and support services, offering consumers added peace of mind and protection against potential issues. These warranties often cover defects in materials or workmanship, providing consumers with recourse in the event of malfunction or failure. Additionally, refurbished phone vendors may offer customer support services to assist with setup, troubleshooting, and device maintenance, further enhancing the overall ownership experience.
Market Challenges
- Consumer Perception: Overcoming skepticism and dispelling misconceptions about refurbished phones remains a significant challenge for the industry. Some consumers are hesitant to purchase refurbished devices due to concerns about product quality, reliability, and warranty coverage. Building trust and confidence among consumers requires education, transparency, and consistent quality assurance measures throughout the refurbishment process.
- Regulatory Compliance and Data Security: Adhering to regulations and standards regarding data privacy, environmental sustainability, and product safety poses challenges for refurbished phone vendors. Ensuring compliance with industry certifications and regulations, such as GDPR (General Data Protection Regulation) and e-Stewards, is essential to maintaining consumer trust and market credibility. Additionally, safeguarding sensitive data during the refurbishment process and implementing robust data erasure techniques are critical to protecting consumer privacy and preventing data breaches.
Market Trends
- Rise of Online Marketplaces: The increasing popularity of online marketplaces and e-commerce platforms has fueled the growth of the refurbished phone industry. These platforms provide a convenient and accessible channel for consumers to purchase refurbished devices, offering a wide selection of products from various vendors. Additionally, online marketplaces often feature customer reviews and ratings, helping consumers make informed purchasing decisions and build confidence in refurbished products.
- Focus on Quality and Certification: As consumer demand for refurbished phones continues to grow, there is a greater emphasis on quality assurance and certification within the industry. Refurbishers and retailers are investing in rigorous testing, inspection, and refurbishment processes to ensure the quality and reliability of refurbished devices. Industry certifications, such as Certified Refurbished programs offered by manufacturers, provide consumers with assurance regarding the authenticity and quality of refurbished products, further driving market acceptance and trust.
The Asia-Pacific region has emerged as the leader in the refurbished phone industry, propelled by several key factors contributing to its dominance. Firstly, the region boasts a massive market size with a diverse population spanning countries such as China, India, Japan, South Korea, and Southeast Asian nations. This vast market presents immense opportunities for refurbished phone vendors to cater to the diverse needs and preferences of consumers across different socioeconomic backgrounds. Moreover, the Asia-Pacific region has experienced rapid technological adoption and smartphone penetration in recent years, driven by factors such as urbanization, rising disposable incomes, and the availability of affordable mobile data plans.
As a result, there is a growing demand for smartphones, particularly among price-sensitive consumers who seek cost-effective alternatives to new devices. Refurbished phones offer an attractive solution, providing high-quality smartphones at significantly discounted prices compared to new models, thus meeting the needs of budget-conscious consumers without compromising on quality or performance. Additionally, the Asia-Pacific region is characterized by a strong entrepreneurial spirit and a thriving ecosystem of refurbishers, retailers, and e-commerce platforms catering to the refurbished phone market.
This vibrant ecosystem fosters innovation, competition, and collaboration, driving the growth and development of the refurbished phone industry in the region. Furthermore, increasing awareness of environmental sustainability and the circular economy has further bolstered the demand for refurbished phones in the Asia-Pacific region. As consumers become more conscious of the environmental impact of electronic waste and seek greener alternatives, refurbished phones offer a sustainable solution by extending the lifespan of electronic devices and reducing e-waste. Refurbished smartphone sales are rising in India because of a new generation of tech-enabled firms like Cashify, HyperXchange, and Flipkart-owned Yaantra, among others.
Refurbished mobile devices offer affordable choices for buyers and sellers, and they are growing in popularity due to the money they save both parties. Local merchants, like Shopzen India, provide high-quality refurbished mobile phones at wholesale prices. With all brands available on one platform, customers can shop for their ideal smartphones and mobile phone accessories while minimizing costs. The market demand in this area is driven by the rising popularity of e-commerce platforms for used and refurbished cell phones.
Timeline considered for this report
- Historic year: 2018
- Base year: 2023
- Estimated year: 2024
- Forecast year: 2029
By Type
- Refurbished Phones
- Used Phones
By Pricing Range
- Low-priced Refurbished and Used Mobile Phones (Less than $200)
- Mid-Priced Refurbished and Used Mobile Phones ($200-$350)
- Premium Refurbished and Used Mobile Phones (More than $350)
By Distribution Channel
- Offline
- Online
Key Attributes
| Report Attribute | Details |
| No. of Pages | 174 |
| Forecast Period | 2023-2029 |
| Estimated Market Value (USD) in 2023 | $64.91 Billion |
| Forecasted Market Value (USD) by 2029 | $100 Billion |
| Compound Annual Growth Rate | 7.8% |
| Regions Covered | Global |
A selection of companies mentioned in this report includes, but is not limited to:
- Alibaba Group Holding Limited
- Apple Inc.
- Amazon.com, Inc.
- eBay Inc.
- Samsung Group
- Swappie OY
- Best Buy Co. Inc.
- Walmart Inc
- Back Market
- Cashify
- One97 Communications Ltd.
- AT&T Inc.
- Target Corporation
- Best Buy Co. Inc.
- MercadoLibre, Inc.
- Recommerce Solutions
Recent Developments
- In December 2023, Smartphone refurbishing startup ControlZ aims to invest nearly USD 2 million in its Gurugram repair facility again in 2024. The company aims to repair 1 lakh units at the facility in 2024 and scale it to 5 lakh units by 2025.
- In November 2023, Reboxed announced that it secured GBP 1.6 million (USD 2.03 million) in seed funding led by ACF Investors. Reboxed offers a commerce platform connecting customers and businesses with a better and more sustainable way to buy and sell technology. It provides premium refurbished and pre-owned devices, including phones, tablets, laptops, and smartwatches, through a 'like new' experience that focuses on quality, consistency, and a genuinely circular approach. The company will use the funds to drive growth and further develop its retail partner programs and Reboxed for business service.
- In September 2023, Back Market launched 'Let Them Buy New' - a provocative new international campaign that calls 'BS' on Big Tech's obsession with creating a need for new products. The campaign parodies Big Tech's marketing ploys to challenge the accepted norm of buying new tech every time, to question a consumer bias for new, and to show that refurbished devices are a high quality, more affordable, and more eco-friendly choice.
- In September 2023, Expon Capital's portfolio company, REFURBED, which achieved 1 billion in GMV since its founding in June 2023, announced a USD 57 million (EUR investment led by existing investors with significant participation from All Iron and several new backers). With this Series C investment, the company will continue to drive its mission to become the leading platform for sustainable products and services to empower consumers to purchase refurbished technology in a more accessible, risk-free, and sustainable manner.
For more information about this report visit https://www.researchandmarkets.com/r/rcgbtk
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