The global refurbished and used mobile phone market will see an expansion of 8.9% CAGR [compound annual growth rate] during the forecast period 2017 to 2025, according to Persistence Market Research (www.persistencemarketresearch.com). Global sales of refurbished and used mobile phones are estimated to account for revenues worth almost $20 million this year, notes the research group.
Global leading manufacturers of mobile phones are emphasizing on green initiatives, by reusing and recycling their products for adopting sustainability. With rapid changes in technology, new innovative gadgets with updated features are being introduced in the market, resulting into reduction in customer usage cycle of mobile phones, says Persistence Market Research.
Premium brand refurbished and used mobile phones are expected to remain sought-after in the market, with sales expanding at a high single-digit CAGR through 2025. Sales of mid-priced brand refurbished and used mobile phones will account for comparatively higher revenue than low-priced brand, and comparatively lower revenue than premium brand by the end of 2025, says Persistence Market Research.
By market type, although consumer-owned is projected to remain dominant in the market, company-owned segment is projected to witness fastest expansion through 2025, in terms of value. Sales of refurbished and used mobile phones in company-owned and consumer-owned markets will collectively account for 277 million units by 2025’s end.
According to the U.S. EPA, electronic waste witnessed 120% increase in the past decade, and only 25% were collected for recycling or reuse. In order to overcome these issues, the North American countries such as Canada and the U.S. have imposed strict regulations for regulating e-waste. In addition, surging environmental effects of e-waste such as leakage of toxic materials has become a major problem in North America, which in turn has fueled adoption of refurbished and recycled goods in the region.
Persistence Market Research says these factors are estimated to drive growth of the refurbished and used mobile phone market in North America. The U.S. is expected to be the most lucrative country for growth of the market in North America, with sales expanding at 7.5% CAGR through 2025.
However, categorization of refurbished phones as second-hand phones, generating preconceived notions among North American customers regarding quality of phones. This is expected to hinder growth of the refurbished and used mobile phone market in the region, says Persistence Market Research.