New Delhi: The refurbished or used smartphone market in India is expected to reach $10 billion by 2026, a new report showed on Thursday.

Overall used electronics market is likely to grow at a 16 percent compound annual growth rate (CAGR) to be worth $11 billion by 2026, according to Bengaluru-based market research firm Redseer.

"The growing popularity of e-commerce platforms for used and refurbished smartphones is driving the market demand," said Siddharth Surana, Engagement Manager, Redseer Strategy Consultants.

Also, due to the pandemic, large numbers of unorganized channels got disrupted by organized digital e-commerce players which led to the requirement for used electronics.

"Refurbished products are a growing resource for consumers to try out new products from their favourite brands and to be more sustainable and price-conscious in their buying behavior" Surana added.

A new breed of tech-enabled startups and players like Cashify, HyperXchange, and Yaantra (owned by Flipkart), among others, are fuelling the growth of the used smartphone market in India.

In 2021, India witnessed the purchase of over $15 billion worth of new smartphones online.

With the number of smartphone users reaching the 550 million mark, it is estimated that on average, a re-commerce app user sells more than two smartphones from each household when the need to upgrade to new devices rises, said the report.

New-age tech players are addressing pain points, offering better experiences to consumers via strong network effects, supply-chain efficiencies, and omnichannel presence.