IBISWorld Industry Market Research: The U.S. Cell Phone Recycling Industry is Expected to Earn Revenue of $827.5 million in 2016
Increasing cell phone ownership and the rising use of smartphone technologies has widened the potential base of phones available for recycling. For this reason, industry research firm IBISWorld has updated a report on Cell Phone Recycling.
NEW YORK, Nov. 22, 2016 /PRNewswire/ -- Revenue for the Cell Phone Recycling industry is estimated to reach $827.5 million over the five years to 2016, representing an annualized growth of 15.8% over the period. Growth will slow in 2016 to 11.4% as declining copper prices reduce the amount of revenue operators can obtain for scrap material.
Cell phones are often recycled for scrap materials such as copper, palladium, silver and gold. Falling commodity prices, such as the price of copper, have cut into the average industry profit margin. Nevertheless, demand for industry services has risen steadily as increasingly high-end consumer devices have entered the industry and as consumers with rising disposable incomes tend to quickly upgrade to the newest smartphones.
Regulations at the state level have significantly benefited industry operators. For example, in 2011 Utah passed a law that requires companies to educate consumers about locations where they can recycle electronics. According to IBISWorld Industry Analyst Madeline LeClair, "As consumers become more educated about electronic recycling, the collection of electronics, including cell phones, becomes easier." As collection of cell phones for recycling and reuse becomes easier, this industry is poised to exhibit growth as a result of a widening base of key inputs (i.e. used phones). Consequently, IBISWorld forecasts industry revenue to continue growing through 2021.
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