A new GSMA report reveals that 70% of global consumers would pay a premium for sustainable devices as the mobile industry discovers that circularity isn’t just good for the planet – it’s becoming essential for business.
That smartphone in your pocket likely took 60 kg of raw materials to create, will be replaced within 3.5 years, and might join the estimated 10 billion dormant phones worldwide – containing $20 billion worth of recoverable precious metals. Yet a fundamental shift is underway. Across 26 countries, consumers are keeping devices longer, demanding repairability, and increasingly choosing refurbished over new.
What was once a strictly linear “take-make-dispose” industry is discovering an unexpected truth: circularity isn’t just environmentally necessary; it’s becoming commercially essential. The circular economy for mobile phones is rapidly becoming a significant business opportunity, with market projections exceeding $150 billion by 2027, according to a new report published by the GSMA at the Mobile World Congress 2025.
The comprehensive study, which surveyed over 10,000 mobile phone users across 26 countries, reveals how evolving consumer attitudes, regulatory changes, and growing awareness of e-waste are converging to challenge the traditional linear model that has dominated the mobile industry for decades.
Consumers driving the circular transition
The report, titled ‘Rethinking Mobile Phones: The Business Case for Circularity‘, highlights significant shifts in consumer behaviour, propelling the industry toward more sustainable practices.
Perhaps most striking is that 70% of consumers surveyed globally stated they would be willing to pay a premium for more environmentally friendly phones, with 30% willing to pay more than a 10% premium.
This consumer sentiment is particularly strong in emerging markets. In India and China, the world’s two largest smartphone markets, 49% and 44% of consumers were willing to pay premiums exceeding 10% for environmentally friendly devices.
The survey also reveals that consumers keep their devices significantly longer than in previous years. The average smartphone upgrade cycle has slowed to approximately 3.5 years globally, compared to just 2.2 years in 2015.
This trend reflects growing environmental consciousness and a maturing market where incremental improvements between device generations have become less compelling. “Consumer trends, regulatory requirements and growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry,” the report states.
“While offering short-term revenues, linear models are costly for consumers, require vast energy and mineral resources to maintain and contribute to the growing e-waste problem.”
The growing market for circular business models
The report identifies a robust and rapidly growing circular product and service market. Sales of used and refurbished phones rose more than 10% in 2022 and a further 6% in 2023, even as new smartphone sales fell by 15% during the same period.
According to the research, 85% of consumers surveyed globally consider sustainability to be an “important” or “very important” factor in their next phone purchase, outranking other criteria such as device aesthetics (73%) and AI capabilities (67%).
The circular economy for mobile phones encompasses a range of business models designed to extend device lifespans and reduce environmental impact. These include:
Device repair services – 71% of operators surveyed offered repair services
- Trade-in and buyback programs – 84% had these programs in place
- Refurbishment programs – 90% of the operators provided refurbished devices
- E-waste collection and management – 87% had formal collection programs
- Device-as-a-service and leasing models – 52% provided these options
Each of these models provides different commercial benefits. For example, operators cited improved customer satisfaction and loyalty (67%), lower overall cost of device ownership for customers (62%), and improved brand image (57%) as the key benefits of repair programs.
The environmental imperative
The environmental case for adopting a circular economy for mobile phones is compelling. In 2024, manufacturing more than 1.2 billion new smartphones generated over 60 million tonnes of CO2 emissions—equivalent to Morocco or Romania’s annual carbon output.
With manufacturing accounting for 70-90% of a typical smartphone’s lifecycle carbon footprint, extending device lifespans through repair and refurbishment delivers substantial emission reductions.
According to the report, repaired and refurbished phones typically have 80-90% lower carbon emissions than new devices. Additionally, the report estimates five to ten billion dormant phones worldwide containing approximately 100,000 tonnes of copper, seven million ounces of gold, and one million ounces of palladium–collectively worth around $20 billion based on current market prices.
Barriers and opportunities for scale
Despite the precise business and environmental benefits, operators identified further barriers to scaling circular business models. These include limited consumer awareness of circular programs and their benefits, high costs, and lack of standardization.
Steven Moore, head of Climate Action at GSMA, emphasized the commercial opportunity: “Fast-growing consumer demand for green and refurbished phones, as well as repair services, is a fantastic business opportunity for the mobile industry.”
Moore further explained that unlocking this potential requires strong collaboration across the value chain, with enabling policies and incentives from governments. This collaboration must bring manufacturers, mobile operators, refurbishers, repairers, and recyclers to address key barriers and unlock new revenue streams.
The report suggests that enhancing customer awareness and acceptance, streamlining processes, and developing partnerships across the value chain are key solutions to overcome these barriers.
Regulatory support accelerating change
The regulatory landscape is also evolving to support circularity. In the European Union, new regulations covering eco-design requirements will enter into force in June 2025. They require manufacturers to provide spare parts and repair information for at least seven years and ensure devices meet certain durability standards.
In North America, Right to Repair legislation has recently passed in several states, including New York, Minnesota, California, Oregon, and Colorado. Similar regulatory initiatives are emerging globally in Canada, Brazil, India, and other regions.
As both market forces and regulatory frameworks continue to evolve, the circular economy for mobile phones represents a significant opportunity for the industry to innovate, create value, and build a more sustainable future.
The GSMA report concludes that transitioning to circular business models “is not just an environmental imperative, but also a strategic opportunity for companies across the value chain.”
For the mobile industry, embracing circularity is increasingly becoming not just the right thing to do but also the smart business move.
