At their prestigious Circular Markets 2025 event in Paris, CCS Insights provided valuable analysis on the latest trends shaping the global secondary mobile market. The market for second-hand smartphones has seen significant growth since 2018, driven by increased sustainability awareness and cost-saving considerations. This shift represents a move from a linear to a circular economy, where reuse and extended device lifespan are central. The organized second-hand market has expanded significantly. In 2024, it is expected to generate over € 43 billion, processing more than 159 million smartphones, tablets, and smartwatches. Biggest region is Asia-Pacific with sales of € 17 billion reaching a staggering € 23.7 billion 5 years later, Asia-Pacific is the largest region, generating €17 billion in sales, projected to reach €23.7 billion in five years. In North America, revenue in the organized second-hand market was €7.8 billion in 2023, with projections reaching €11 billion by 2028 North America’s second-hand smartphone market generated €7.8 billion in 2023, with projections reaching €11 billion by 2028. The Middle East and Africa are experiencing the fastest maturation, increasing supply and demand.
Consumer motivations
Price remains a key factor for consumers opting for second-hand devices. Sustainability is another major driver, with many preferring used devices over new ones. Some consumers choose a second-hand device from a premium brand over a new one from a lesser-known brand. Access to second-hand devices through family and friends also influences purchasing decisions. Younger generations, being more cost-conscious, show a higher inclination toward buying refurbished models.
Regional differences
India leads growth in the Asia-Pacific region, driven by companies such as Cashify and Yaantra. In Africa, Japan, and Australia, currency depreciation has pushed consumers away from the primary market. Europe benefits from large-scale imports, with 10 million second-hand smartphones imported in 2024. North America exports 30 million used devices while importing 10-15 million, whereas Asia-Pacific exports around 10 million units.
Impact on the primary market
The expansion of the organized second-hand market affects new device sales. The top five Apple iPhone models in the second-hand market have generated sales of over 73 million units since 2021, valued at € 24 billion. These sales could have accounted for almost € 56 billion in the new device market. These second-hand sales represent a potential € 56 billion loss in new device sales.
Trade-in programs and resale
Unfortunately, only a relatively small portion of old devices is currently resold or traded in. In 2024, only 18% of consumers in the UK, Germany, Spain, and the US reported trading in their devices at the end of their lifecycle. Financial incentives for trade-ins can boost supply in the second-hand market. Trade-in programs encourage consumers to return old devices when purchasing a new one, increasing the availability of refurbished devices.
Regulation and sustainability
Legislation such as France’s Anti-Waste for a Circular Economy Act, forcing companies to buy used products, and the EU Radio Equipment Directive (USB-C) support circular economy practices. Sustainability concerns increasingly influence consumer choices, making second-hand devices an attractive option.
Conclusion
The circular smartphone market is rapidly growing and holds immense potential. By emphasizing reuse, trade-in programs, and sustainable practices, the electronics industry can take a significant step toward a more circular economy. Continued collaboration between businesses, governments, and consumers will accelerate this transition and reduce the environmental impact of the electronics industry.
Market
Trade-in
Repair
Refurbishing
