The global used smartphone market is expected to surpass 206 million units.

According to International Data Corporation, worldwide shipments of used smartphones, including both officially refurbished and used smartphones, would reach 206.7 million units in 2019, up 17.6 percent from the 175.8 million units delivered in 2018. (IDC).

Used smartphone shipments are expected to reach 332.9 million units in 2023, according to a new IDC prediction, with a compound annual growth rate of 13.6 percent from 2018 to 2023.

Despite the fact that the worldwide new smartphone industry is in decline, used smartphone shipments are rapidly increasing, with a promising market outlook.

“In contrast to the recent drop in the new smartphone market and the forecast for minimal growth in new shipments over the next few years, the used smartphone market shows no signs of slowing down across the globe,” Anthony Scarsella, research manager for IDC’s Worldwide Quarterly Mobile Phone Tracker, said.

This increase can be ascribed to an increase in demand for used cellphones, which provide significant discounts over new versions, according to IDC.

Refurbished and used smartphones continue to be a cost-effective option for both consumers and organisations trying to save money on a smartphone purchase.

Furthermore, automakers have struggled to create new models that strike a balance between appealing new features and an affordable price.

In the future, IDC anticipates the introduction of 5G networks and smartphones to have an impact on the used market, as users trade in their 4G smartphones for the promise of high-performance 5G handsets.

Regulatory compliance and environmental initiatives are still driving growth in the used market, but the importance of cost-cutting for new devices, according to IDC, will continue to fuel growth.

“Trade-in, in combination with an increase in financing plans (EIP), will be the two key drivers of the refurbished phone industry going forward,” said Will Stofega, programme director, Mobile Phones.