US$ 40 billion milestone in sight for refurbished phone sector

United States – The global refurbished and used mobile phone market will be worth US$ 38.9 billion by 2025, according to Persistence Market Research. This is a notable increase from the US$ 19.7 billion revenue anticipated for this year, representing a compound annual growth rate of 8.9% in the period 2017-2025.

In the coming eight years, companies and consumers alike will have jointly purchased as much as 277 million refurnished and used handhelds.

In terms of value, the company owned segment is projected to be the ‘most attractive’ in the global refurbished and used mobile phone market during the forecast period. This segment was valued at over US$ 10 billion and is expected to register a 10.3% compound annual growth rate by 2025.

‘This increasing revenue growth can be attributed to a sudden price drop in electronic devices that is attracting new consumers to purchase refurbished mobile phones,’ market analysts say. They argue that strict government regulation regarding e-scrap in North America is fuelling the market for refurbished and used mobile phones.

It is added that The US will likely be the ‘most lucrative’ country for growth of the market in North America, with sales expanding at a compound annual growth rate of 7.5% through 2025.

On the other hand, there is still said to be a tangible lack of consumer trust in refurbished and used mobile phones. Uncertainty about the quality of such devices is thus hampering the growth of the worldwide market.

Figures by the US Environmental Protection Agency indicate that e-scrap surged 120% between 1999 and 2009, the report pointed out.

According to the Global E-waste Monitor 2014, the volume of end-of-life electronics generated in the Americas totalled 11.7 tonnes, of which 7.1 tonnes was contributed by the US.