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The refurbished smartphone market size is estimated to increase by USD 55.06 billion at a CAGR of 13.73% between 2023 and 2028. The growth of the market depends on several factors, including an increasing focus on the circular economy and sustainability in the electronics industry, growth in the smartphone repair industry, and increased product launches. The shift towards a circular economy and sustainability drives demand for eco-friendly and recyclable electronic components. The growth of the smartphone repair industry highlights the need for replacement parts and services, prolonging the lifecycle of devices. Additionally, frequent product launches introduce innovative solutions and technologies, keeping the market dynamic and competitive. Together, these factors contribute to robust market growth by promoting environmental responsibility, extending the usability of electronics, and maintaining a steady influx of new products.
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The market share by the android segment will be significant during the forecast period. One of the most widely used mobile operating systems (OS) in the world is Android. Because it is inexpensive and has many features, the reconditioned Android operating system is becoming more and more popular with customers all over the world.
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The android segment was the largest and was valued at USD 24.05 billion in 2018. The growing focus on circular economy models is one of the major factors driving the segment. The growth in circular businesses is leading to partnerships and interactions between sellers and refurbished in the market. Further, most of the established companies, such as Samsung, have started selling their smartphones on their official websites. As the demand for refurbished Android smartphones increases, other companies are expected to launch their websites for selling these smartphones. The demand for the Android operating system is expected to further increase and fuel the market during the forecast period.
The low-priced segment was the dominant segment in 2023 and is expected to contribute to the market. This is due to its rapidly growing e-commerce platform and favorable EMI alternatives for customers buying low-range vintage mobile phones. Additionally, the proliferation of semiconductors and the entry of new competitors have lowered the cost of manufacturing portable playback devices. The low-priced phones are most preferred by consumers in emerging countries such as India and Brazil, which have low per capita income. Therefore, due to increased demand for low-priced phones, the market is expected to witness high growth during the forecast period.
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APAC is estimated to contribute 47% to the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Over the past few years, the market in APAC has grown significantly. China, India, and Indonesia are the major revenue-generating countries in the region. The growth of the market in the region is driven by various factors, including the development of telecom infrastructure, the growing price of smartphones, and the lack of disruptive features in Android smartphones. As leading smartphone prices remain at the higher end, a large number of consumers in APAC prefer refurbished models of popular brands such as Apple Inc. and Samsung Electronics Co. Ltd.
In addition, the key companies operating in the regional market are Samsung Electronics Co. Ltd. and Reboxed Ltd. Globally, APAC is an emerging market where the market consists of both smartphone manufacturers and retailers. Notably, Amazon consumers were requested to contribute their old smartphones or mobile phones for refurbishment. Therefore, such strategic imperatives are expected to increase the growth in APAC during the forecast period.
The market is rapidly expanding, driven by the increasing purchasing power of middle-class populations and the demand for budget-friendly options. Students and budget-conscious buyers seek affordable devices from various brands that offer value-oriented solutions. Reports by Counterpoint Research and Cashify highlight a surge in shipment volume, reaching million units annually. Companies like ReFit Global contribute to this sustainable tech ecosystem. The premium smartphone segment is witnessing a shift as refurbished phones with upgraded specifications and enhanced connectivity gain popularity. Supported by economic indicators like Sensex and Nifty, and developments by Alliance Urbanrise and HomeLane, the market's growth is promising.
The market is witnessing significant growth, primarily driven by the flourishing smartphone repair industry. The widespread adoption of smartphones, coupled with their delicate screens and complex components, has led to an increased demand for repair services. Consumers are increasingly turning to expert repair facilities to salvage functional devices, particularly as smartphones become more integral to daily life. Additionally, the declining costs of cell phones and the introduction of yearly upgrade plans by carriers have influenced consumer behavior, with some prioritizing replacements over repairs. Despite this trend, the smartphone repair industry continues to thrive, offering cost-effective solutions to extend the lifespan of devices and reduce electronic waste.
Furthermore, emerging markets, particularly those with aggressive smartphone upgrade cycles, are contributing to the growth of the market. The availability of high-specification devices at affordable prices from Chinese brands has fueled faster upgrade cycles in these regions. This dynamic environment creates opportunities for the refurbishment sector to provide refurbished smartphones as a more affordable alternative to brand-new devices. As consumer preferences evolve and technological advancements continue, the market is poised for further growth, driven by the convergence of repair services, affordability concerns, and the increasing accessibility of high-quality refurbished devices in both developed and emerging markets.
Rising demand from developing countries is an emerging trend shaping market growth. Emerging markets, growing demand for cheaper products, and the prevalence of smartphones in developing countries are driving the demand. In addition, rapid urbanization in developing countries, increasing brand sharing of mid-range, and rising demand for advanced features at low prices are expected to drive the market. In addition, increasing consumer reliance on electronic devices in developing countries is necessary to support demand in the market.
Further, smartphone makers in developing countries are investing resources in new jobs to produce high-quality mobile phones that can quickly meet the mechanical requirements of their customers. Moreover, such factors are expected to boost the growth of the market during the forecast period.
Trust issues is a significant challenge hindering the market. The warranties are typically far less than those on new phones, they do not always include the newest technology, and they might have flaws (scratches, dents). The smartphone might not have software updates. Many fully operational phones become obsolete each year due to the end of support for security updates. If the software is not updated, the device may become insecure and can be easily hacked.
However, some refurbished phone dealers install new batteries, but this is not always the case. Devices that have been in use for several years have already lost some of their battery capacity; thus, buying such refurbished phones can lead to customer dissatisfaction. Hence, trust issues associated with smartphones may hamper the market during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amazon.com Inc. - The company offers refurbished smartphones such as Nokia C32, POCO F1, and Lava Agni 2 5G.
Apple Inc. - The company offers refurbished smartphones such as iPhone SE, iPhone 13 mini, and iPhone 13
AT and T Inc. - The company offers refurbished smartphones such as Google Pixel 8 Pro, Motorola Razr, and Sonim XP10.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is thriving, driven by socially conscious consumers focused on sustainability efforts. Pre-owned smartphones offer significant discounts and are endorsed by celebrities. Advanced refurbishment technologies enable high-end refurbished devices to meet modern needs. Trade-in programs and financing options are popular among consumers, enhancing credit accessibility. B2B sales cater to employee use, creating a valuable revenue stream for businesses. Specialized retailers like The iOutlet offer refurbished iPhones with extended warranties and additional functionality. Circular economy concepts like take-back programs and remanufacturing processes align with sustainability. Unique devices from designers cater to niche markets. As e-waste concerns grow, network operators support low-budgeted smartphones through trade-in volume and work from home trends, boosting 5G connections and smartphone features. Investments from ACF Investors and Expon Capital in ControlZ and REFURBED highlight a growing market in a risk-free manner.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.73% |
Market Growth 2024-2028 |
USD 55.06 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.81 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 47% |
Key countries |
US, Canada, China, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., Amazon.com Inc., Apple Inc., AT and T Inc., Back Market, Best Buy Co. Inc., Clues Network Pvt. Ltd., eBay Inc., Gadgetwood E Services Pvt. Ltd., HOMES SOLUTION LTD., Manak Waste Management Pvt. Ltd., Qarmatek Services Pvt. Ltd., Quikr India Pvt. Ltd., Reboxed Ltd., Samsung Electronics Co. Ltd., Smart Cellular, Swappie Oy, TROCAFONE SA, Verizon Communications Inc., and Walmart Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Additional Value/Volume Data
6 Five Forces Analysis
7 Market Segmentation by OS
8 Market Segmentation by Price Range
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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