At CCS Insights’ Circular Markets 2025, it became evident that automated processing and grading have arrived in Europe, driven by accuracy, consistency, and speed. However, setting up automated processing and grading is no simple task—it requires implementation, deep process expertise, and significant investment. Consequently, to make it profitable, a large volume is necessary. This was one of the key reasons Andreas Bauer and Fergal Donovan founded Cyculus and their unique Device Processing as a Service. We decided it was time for an interview to learn more about Cyculus.
SecondaryMarket.news: You've been active in the secondary market for years. What led you to start offering Device Processing as a Service?
Cyculus/Fergal Donovan: Manual grading, while essential to the secondary and circular markets, is neither precise nor scientific, which has long been a limitation. The industry needed change. By incorporating AI, robotics and automation into the processing and grading of devices, we’ve transformed the consistency, quality, speed, and accuracy of these operations. I’ve closely followed the U.S. market, where automation has become the dominant approach, with around 85% of devices being processed using some level of automation today. The technology has been proven for years, and the pre-owned device market was ready for this shift.
However, the highly fragmented landscape of the EU market has hindered the adoption of robotics and automation. It has thus created a need for a service model, Device Processing as a Service. Cyculus is addressing this gap by providing cutting-edge technology without the traditional barriers to entry. This makes it accessible to businesses of all sizes, allowing them to leverage the benefits of automation without significant upfront investment.
SecondaryMarket.news: It’s expected that by 2025, around 15% of total secondary mobile sales volume in Europe will come from devices that have been automatically processed and graded. Why do you believe automation is the future?
Cyculus/Fergal Donovan: The fragmented European used device market makes technology adoption challenging. Volume and investment needs will remain obstacles for many businesses. We anticipate Device Processing as a Service will rapidly boost the share of devices processed robotically in Europe. We foresee European buyers increasingly preferring, and eventually paying more for, devices processed and graded through automation, as it will establish the benchmark in used device grading.
Volumes will consolidate at larger-scale automated facilities, where automated standardised grading and customised grading profiles will become the norm. Resellers will benefit from more accurate, consistent grading and fewer returns, while consumers will gain confidence in the devices they buy. These factors will drive rapid growth in automation across Europe, mirroring the US market in the coming years.
SecondaryMarket.news: What sets your automated processing and grading solution apart from others in the market?
Cyculus/Fergal Donovan:
Automation removes human subjectivity by accurately detecting cosmetic, structural, and functional defects with unmatched consistency and repeatability. While manual grading has been shown to achieve only 60-70% accuracy, our automation delivers over 98% accuracy with flawless repeatability.
Cyculus has adopted the best available automation technology, aiming to collaborate to remain at the cutting edge of quality and innovation moving forward. We will also provide enhancement services to ensure that devices leaving Cyculus are not only processed and graded to the highest standards but are also enhanced to be in the best possible condition.
It’s also worth noting that Cyculus offers a unique, full end-to-end process. Simply place a device on the conveyor belt, and within minutes, it will be fully processed, graded and even packed. Ready for shipment. – fine with this.
SecondaryMarket.news: Cyculus has been running pilot processing and grading operations for several weeks now. What are your overall impressions of the results so far?
Cyculus/Fergal Donovan: While it’s still early to make definitive conclusions, the results so far have been very promising. We’ve seen positive feedback regarding the precision and speed of the automated grading process, and we’re encouraged by how quickly the system is integrating into our operations. The pilot phase is crucial to ironing out any potential challenges, but so far, the technology is performing as expected, and the response from our partners has been encouraging. We look forward to scaling this even further as we fine-tune our processes.
SecondaryMarket.news: Cyculus uses Apkudo’s machines and software. In the U.S., Samsung has chosen Apkudo as its triage partner. Would that model also work in Europe?
Absolutely, technology is advancing rapidly, and the partnership between Samsung and Apkudo highlights this. Samsung’s diagnostic software is being integrated into the latest Apkudo hardware, while existing Apkudo machines are being finely tuned to process Samsung devices more quickly and effectively.
I expect to see this technology land in Europe in 2025 where we will see a growing share of pre-owned Samsung devices being processed through bespoke automation and robotics.
SecondaryMarket.news: What does a typical Cyculus customer look like?
Cyculus/Fergal Donovan: We estimate that over 600 businesses of various sizes are involved in processing used mobile devices across Europe. This includes smaller resellers, large-scale trade-in providers, retailers, operators, and OEMs. Automation is a relevant topic for all these businesses. While some may adopt partial robotics, others might continue with manual processing for now. For those looking to transition to automation as a service, Cyculus offers this support without requiring large volumes or significant investment.
Customers are also turning to Cyculus to iron out high volume periods where existing internal resources cannot manage. These situations occur mainly during new product launches and when larger enterprise take-back deals take place.
SecondaryMarket.news: Does working with Cyculus require a high volume to be worthwhile?
Cyculus/Fergal Donovan: No, the aim of establishing Cyculus Services was to make industry-leading technology accessible to all, even at low volumes. With batches of just 500 or more units per month, any customer in Europe can take advantage of Cyculus' end-to-end automated processing and grading line, delivering unparalleled precision, accuracy, and consistency for their business.
SecondaryMarket.news: Where do you see Cyculus five years from now?
Cyculus/Fergal Donovan: That’s a great question. We’re still in the early stages, so predicting five years ahead feels a bit premature. However, the feedback on our services has been overwhelmingly positive, and we’re onboarding new customers faster than expected. In five years, I see Cyculus continuing to lead in automation and robotics within the pre-owned device supply chain, incorporating more AI, expanding our services, and running multiple facilities.
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