CCS Insight: automation reshapes secondary device processing and grading

Automation beyond efficiency

Automation in the secondary device ecosystem spans initial intake, functional testing, grading, refurbishment, certified data wiping and onward distribution. CCS Insight defines automation as any process carried out by a machine, with automated processing and grading relying on internal diagnostics completed without human input. While automation does improve speed and throughput, CCS Insight identifies consistency and assessment quality as the primary drivers. Automated systems reduce variability between operators and locations, addressing long-standing concerns over subjective grading and uneven refurbishment outcomes.

Trade-in kiosks gain traction

At the point of trade-in, automated kiosk solutions are playing an increasingly visible role. In the United States, ecoATM remains the most prevalent model, operating more than 6,800 machines nationwide and expanding into Canada through selected Walmart locations in 2025. These kiosks provide instant device valuation and immediate cash payouts, with ecoATM retaining ownership of traded-in devices. Retail partners benefit from space rental fees and higher in-store spending, with around 70% of payouts reportedly reinvested during the same visit.

European models diverge

In Europe and other international markets, alternative kiosk models are emerging that reflect different economic realities. Providers such as Get-Re allow retailers and telecom operators to retain ownership of traded-in devices, paying for kiosk installation and software licences. This approach aligns with less generous trade-in incentives compared with the US, while offering operators a simplified channel to expand device take-back volumes and feed internal recommerce programmes.

Software-first trade-in innovation

Beyond physical kiosks, AI-first trade-in solutions such as Pandas highlight a shift toward hardware-agnostic automation. By using standard devices, running either on Android or iOS, equipped with cameras, these platforms enable rapid deployment, remote assessments and wide scalability. Consumers receive guaranteed valuations before completing in-store handovers, reducing friction while avoiding the capital costs associated with manufacturing and deploying dedicated machines. Recently Pandas entered a partnership with Carrefour rolling out the above trade-in scheme.

Processing and grading complexity

Following trade-in, devices progress through processing, grading, refurbishment and redistribution. Automated processing solutions, provided by companies such as Apkudo, FutureDial and NSYS, and more recently by Adapta Robotics and the Prestigo Group’s Enjoycube, encompass diagnostics, blacklist screening, SIM-lock verification and certified data erasure. CCS Insight estimates that just under 70% of global secondary device volumes are processed at mid-level automation tiers in 2025, with the highest levels of automation adoption concentrated among large-scale processors, particularly within the US carrier channel. In parallel, service providers including Cyculus and Dis-Connect offer automated processing and grading as a service, leveraging equipment supplied by Apkudo or FutureDial.

Regional adoption gaps persist

Regional disparities remain pronounced. In 2025, more than 75% of US device throughput passes through some form of automated system, often end-to-end. Europe and Asia-Pacific lag significantly at around 15%, constrained by market fragmentation, lower volumes and higher relative costs. However, CCS Insight projects a sharp increase in automated processing globally, rising from 31% of devices, or 42 million units, in 2025 to 45%, or 72 million units, by 2030.

Grading consistency challenges

Automation improves internal grading consistency, but broader market challenges persist. Grading standards vary widely, with companies using between three and six categories and differing definitions of top-grade devices. While automated systems can ensure repeatability within a single organisation, the absence of universal grading standards continues to limit transparency and comparability for downstream buyers.

Strategic implications ahead

Looking ahead, CCS Insight expects automation to become integral to secondary market infrastructure. Modular and end-to-end systems are likely to attract both large processors and smaller handlers seeking scale, margin stability and improved sustainability outcomes. As machines become cheaper and faster, automation is set to underpin the next phase of growth in global device recommerce.