Refurbishment: More than just a market trend

As sustainability regulations and supply chain pressures reshape industrial procurement, refurbished electronics are moving from a niche option to an essential part of the market, says Gerard Katje

INDUSTRIAL ELECTRONICS refurbishment has undergone one of the most significant transformations in the manufacturing ecosystem over the past two decades. What began as a niche service has now evolved into a technically sophisticated, strategically indispensable sector. Today, refurbishment sits at the intersection of sustainability ambitions, supply chain resilience, cost control, and industrial uptime. So, how did we get here, what are the key trends affecting refurbishment now, and most importantly, where is the sector heading?

The rise of refurbishment

As with so much else, a critical driver was COVID. During the pandemic, global supply chains fractured and component lead times stretched into months. When new components were unavailable, refurbishment shifted from optional to essential, and this experience fundamentally changed market perception. Buyers discovered that refurbished components not only worked but often outperformed new parts in lead time, reliability, and lifecycle continuity. 

Another important macroeconomic driver towards refurbishment has been European sustainability regulations such as the CSRD, right-to-repair and Scope 3 disclosure requirements. The regulatory environment is increasing pressure on companies to understand and report the environmental footprint of their equipment. This greater transparency naturally increases interest in refurbishment, as it avoids raw material extraction, lowers carbon emissions, and reduces waste streams.

At the micro level, customers too have become more aware of refurbishment. A decade ago, many industrial buyers did not even know refurbished electronics were an option. If they did, they often assumed it was risky or low-quality. Thanks to the rise of webshops and greater price transparency, today’s buyers can actually see what exists and compare prices and lead times, a factor that is enhanced by the fact that maintenance budgets are under pressure across Europe.

Converging market forces

Several converging market forces are currently accelerating the shift toward refurbished industrial electronics, with sustainability policy, ecosystem readiness, and quality differentiation emerging as the strongest drivers. Legislation like the European CSRD is already pushing companies to quantify and reduce the environmental impact of their operations. Refurbished components offer a clear advantage: they avoid the resource use, emissions, and waste associated with new manufacturing.
 
Several countries expedite this development by adding their own sustainability regulations. France, for instance, requires large organisations to operate within a circular procurement framework, stimulating demand for certified refurbished components. Industry studies suggest that refurbishing an industrial drive or PLC can reduce associated carbon emissions by up to 80% compared to manufacturing a new equivalent. What once counted as a ‘nice to have’ is becoming a material argument in sales discussions, shaping decision-making at both procurement and corporate levels. 

To meet expectations, refurbishers have begun formalising their processes through independent quality labels such as RCube, which verify refurbishment standards and help customers distinguish technically robust products from cosmetic rebranding. This kind of certification provides a stamp that reinforces trust, especially in a market where refurbished items can differ significantly depending on the provider.

This is the basis of JC-Electronics' JCertified standard: every component supplied undergoes a documented technical inspection and testing process, giving customers the traceability and confidence they need to specify refurbished with the same assurances as new.

Looking to the future

JC-Electronics expects the current shift between new and refurbished industrial electronics to continue over the next five to ten years, with one of the clearest developments to be a move away from informal traders and brokers toward technically capable refurbishers. Order data indicates that the proportion of customers requesting certified refurbished components over unverified alternatives has more than doubled in the past three years. Middlemen who merely trade components without adding technical value will play a smaller role as buyers want reliability, traceability, and warranties, while OEMs will increasingly offer their own refurbished lines.

A second trend is the gradual consolidation of the market. Today’s refurbishment landscape is highly fragmented, with players across all continents and of varying technical standards. In the coming years, platforms that aggregate and professionalise refurbishment activity will continue to grow, while non-technical players will fall away, accelerated by digitalisation. 

Longer term, predictive maintenance, where components are replaced before they fail, is expected to gain momentum, while the geopolitical landscape will reinforce Europe’s push toward circularity, forcing Europe to handle raw materials more carefully and keeping components in circulation within Europe to support both resilience and sustainability. 

"What has worked before, can always work again"

Above all, the growing relevance of refurbished components is rooted in the simple observation that reuse is becoming commonplace, from consumer electronics to industrial systems, because it is more circular, uses fewer resources, and still meets the demands of modern operations.

There is a saying when it comes to industrial refurbishment: "What has worked before, can always work again". That belief reflects a refusal to waste components that can still be restored to full function. In that sense, the shift towards refurbishment is more than a market trend. It is a cultural shift grounded in curiosity, resourcefulness, and a belief that well-designed technology deserves a longer life.

Gerard Katje is MD at JC-Electronics

For more information: 

www.jc-electronics.com

Tel:  +44 1543 22 55 00

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