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Adriana Neligan / Lennart Bolwin / Circularity* / Deloitte* / Fraunhofer IZM* / Systemiq* Expertise 8. October 2024 From Consumer Insight to Circular Impact: Market Report of Circular Business Models in the Electronics Market in Germany

Electronic devices are essential in daily life, but their widespread use has led to environmental challenges. Circular business models—such as second-hand sales and rental services —are key to mitigating these effects by extending the useful life of a product or intensifying the usage.

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Market Report of Circular Business Models in the Electronics Market in Germany
Adriana Neligan / Lennart Bolwin / Circularity* / Deloitte* / Fraunhofer IZM* / Systemiq* Expertise 8. October 2024

From Consumer Insight to Circular Impact: Market Report of Circular Business Models in the Electronics Market in Germany

Market Report by Circularity e.V. in Cooperation with the German Economic Institute, Deloitte GmbH, Fraunhofer IZM and Systemiq

German Economic Institute (IW) German Economic Institute (IW)

Electronic devices are essential in daily life, but their widespread use has led to environmental challenges. Circular business models—such as second-hand sales and rental services —are key to mitigating these effects by extending the useful life of a product or intensifying the usage.

Both of these levers may ultimately generate more value for the users with less physical devices, which may lead to a reduction in the need for new resources. However, the actual impact of such circular offerings hinges on how devices are used in practice, which is not well understood. This report examines B2C (business-to-consumer) and B2B (business-to-business) segments in Germany for smartphones, laptops, cameras, and gaming consoles to identify usage patterns and sustainability effects of circular business models.

Key results on personal use – B2C

  • Adoption: 20% of consumers in Germany have purchased their current device second-hand, whereas only 1% rent electronic devices and adoption could increase eightfold for rental and double for second-hand, based on consumer intention
  • Sustainability conscious individuals are the primary drivers of the second-hand market (30% adoption) - monthly income also has an effect
  • Price, warranty, convenience, brand, and repairability dominate purchase decisions for electronic devices in general
  • Cost savings and sustainability drive second-hand purchases, but many consumers still prefer having a new device. Warranty could be a critical enabler for second-hand adoption
  • Consumers intent to use their second-hand devices for just as long as their new devices (e.g. 3.6 yrs for smartphones), underlining the potential for life span extension
  • Second-hand offerings have an effect on consumption behavior, which may induce positive or negative environmental impact. 42% buy more often, 23% buy more devices due to the availability of second-hand
  • The primary barrier to adopting rental models is the desire for ownership – however, offering financial incentives could serve as an enabler
  • Rental users value flexibility, latest technology access and technical support (separate survey conducted)
  • Rental offerings enable access to more devices (for >39%) and more frequent upgrades (for 41%) – the environmental rebound effect remains to be quantified
  • Consumers in Germany are familiar with repair services, but concerns about financial attractiveness (for 52%) and ineffectiveness remain key barriers for increasing repair rates
  • Selling second-hand is becoming a preferred option for unused devices (23%), overtaking storage as back-up (21%), which could spur recirculation
Download Studie
Market Report of Circular Business Models in the Electronics Market in Germany
Adriana Neligan / Lennart Bolwin / Circularity* / Deloitte* / Fraunhofer IZM* / Systemiq* Expertise 8. October 2024

From Consumer Insight to Circular Impact: Market Report of Circular Business Models in the Electronics Market in Germany

Market Report by Circularity e.V. in Cooperation with the German Economic Institute, Deloitte GmbH, Fraunhofer IZM and Systemiq

German Economic Institute (IW) German Economic Institute (IW)

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