CCS Insight’s Ben Wood Interviews SecondaryMarket.news at VANTA2025

Cyculus provides Device Processing as a Service (DPaaS), powered by Apkudo, to the European and global secondary mobile market, enabling companies to outsource the grading and processing of used devices with efficiency, consistency, and scalability.

The secondary device market is maturing and positioned for a rapid expansion beginning around 2027, driven primarily by more effective trade-in programmes and improved automated device processing technologies. Industry observers say the sector is moving away from informal opportunism toward a professionalised, scalable market that can absorb larger volumes while maintaining margins and customer satisfaction.

Below a summary of the interview.

Market maturity and timing

Market maturity is evident in steady growth through 2024 and 2025, followed by consolidation ahead of a sharper acceleration in 2027. The primary device market remains a key upstream driver: higher shipments of new devices increase the supply that eventually feeds the secondary ecosystem. The arrival of highly anticipated Apple devices could trigger a “super cycle” that temporarily lifts both primary and secondary volumes. Consolidation through 2024 to 2026 gives operators time to invest in infrastructure and processes without creating oversupply.

Trade-in programmes as the lever

Trade-in programmes are widely recognised as the single most important lever to expand secondary market penetration across Europe. Current operator trade-in rates sit at about 5% to 6% on average, with the UK showing higher uptake and France an outlier at lower rates. Industry experts stress that flawless integration into sales processes, transparent and fair pricing, and instant payouts in Euro are essential to boost consumer participation. Delays in payout reduce conversion, so immediate cash or store credit is a crucial component of a successful offer.

Automation and processing technologies

Automation in grading and processing is becoming essential for ambitious operators. Low capital entry models, where automation equipment is available through service arrangements, lower barriers and professionalise workflows. Process improvements such as quieter polishing, safer buffing, and advanced re-glassing increase throughput and final device quality. Although housing condition continues to cap final grades, automation raises consistency and reduces manual error, supporting higher resale prices and better customer outcomes.

Wearables offer fresh opportunities

Wearables, particularly smartwatches, are emerging as a promising segment for secondary trade due to price points and impulse purchase behaviour. Historical processing challenges, such as battery charge and pairing requirements, are being addressed by revised workflows and tooling. Retailers can leverage bundles of wearables with smartphones to increase trade-in appeal, creating additional revenue streams and customer engagement points.

Strategic risks and mitigation

The pace of market acceleration will depend on flagship device launches and consumer behaviour. If primary market growth slows, operators must compensate by intensifying trade-in offers and improving integration. Strategic flexibility in pricing and instant payout systems will mitigate inventory and demand risk. The consolidation window should be used to standardise processes, upgrade automation, and build consumer trust through transparent value propositions.

User experience and integration imperatives

Seamless sales integration and clear pricing are decisive for trade-in uptake. Trade-in interfaces must fit naturally into customer journeys and communicate value transparently. Fair pricing aligned to market realities motivates participation while protecting programme economics. Investing in UX and back-end integration now positions operators to capitalise when volumes accelerate after 2027.