REFURBISHED ELECTRONICS MARKET ANALYSIS

Market Challenges And Opportunities

Refurbished Electronics Market Drivers:

• Environmental Sustainability: The emphasis on environmental sustainability and reducing electronic waste is a significant driver for the refurbished electronics market. By extending the lifecycle of electronic devices through refurbishment, the market contributes to the principles of the circular economy. Consumers are increasingly aware of the environmental impact of electronic waste and are choosing refurbished products as a way to minimize their carbon footprint. According to a survey by the United Nations University in 2020, India discarded approximately 3 million tons of e-waste, most of which could have been refurbished and resold, extending the useful life of these assets.
• Premium Features at Lower Costs: Refurbished electronics often provide consumers with the opportunity to own premium devices with advanced features at more accessible prices. This is particularly appealing in markets where brand-new premium products may be too expensive for a significant portion of the population. Refurbished options allow individuals to experience the latest technology without breaking the bank. The United Nations International Children's Emergency Fund (UNICEF) data showed that over 16 million additional children in low and middle income countries faced learning losses in 2021 due to lack of access to digital devices highlighting the need for affordable computing options.
• Trustworthy Quality: To meet consumer expectations, reputable refurbishment processes involve thorough testing, repairs, and quality assurance. This results in products that are restored to a like-new condition, ensuring that consumers can rely on the quality and performance of refurbished electronics. Trusted refurbishes often provide warranties that enhance consumer confidence in the reliability of these products. According to a Euro barometer report from 2020, 71% of European citizens agreed that if the quality is guaranteed, they would consider buying refurbished products.
• E-commerce and Online Retail: The rise of e-commerce platforms and online marketplaces has facilitated the growth of the refurbished electronics market. Consumers can conveniently browse, compare, and purchase refurbished devices from the comfort of their homes. The digital space has enabled easier access to a wide variety of products, boosting the visibility of the refurbished electronics market. According to The United Nations Conference on Trade and Development (UNCTAD), the global e-commerce sales jumped from US$ 25.6 trillion in 2019 to US$26.7 trillion in 2020, much of this growth has helped drive refurbished markets.

Refurbished Electronics Market Opportunities:

• Premium Refurbished Products: Offering premium or flagship models as refurbished options can tap into the demand for high-end devices at reduced prices. As consumers aspire to own the latest technology, providing refurbished versions of premium products can be a lucrative opportunity. This can also help refurbishes differentiate their offerings and cater to a niche market segment. The UN Environmental Programme estimates show the world generated a record 53.6 million metric tons of e-waste in 2019, with only 17.4% being properly collected and recycled.
• Innovations in Refurbishment Techniques: The development of advanced refurbishment techniques and technologies can enhance the quality of refurbished products. Innovations in diagnostics, repair processes, and cosmetic improvements can result in products that closely resemble their brand-new counterparts. Incorporating Artificial Intelligence (AI) driven diagnostics and precision repair methods can elevate the quality of refurbished electronics. According to a 2021 report by the UN Environment Programme, the world generated a record 53.6 million metric tons of electronic waste in 2019 alone. Refurbishment is a solution to manage this growing e-waste problem, by repairing and reselling devices instead of sending them to landfills or for incineration.
• Partnerships with OEMs: Collaborations with original equipment manufacturers (OEMs) can boost the credibility of refurbished products. OEMs can provide certified refurbishment programs, ensuring that devices meet specific quality standards. Such partnerships can instill consumer confidence and facilitate the flow of used devices back into the market. According to a 2022 report by the United Nations Environment Programme around 50 million tons of e-waste was produced globally in 2019.
• Extended Warranty and Support Services: Offering extended warranty and support services for refurbished products can provide consumers with added peace of mind. This can differentiate reputable refurbishes by assuring customers of ongoing technical support and repairs, similar to what they might expect when purchasing new products. According to data from the United Nations, global e-waste hit a record high of 53.6 million metric tons in 2019 and is projected to reach 74 million metric tons by 2030.