Repair market: expanding and full of opportunities

The repair market has long been considered a niche market but is now establishing itself as a pillar of the circular economy. Covid and inflation have completely changed the game, forcing consumers to adapt their habits. Repairing now rhymes with saving. And consumers have understood this well. Governments too, who have environmental objectives and see in the repair market (and in the circular economy) a choice ally. In this dossier, our firm, drawing on several market studies on the subject, provides an exhaustive portrait of the market.

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An economic potential still largely untapped

The figures for the repair market in Europe highlight the potential of this market. On one hand, we generate around 62 million tonnes of electronic waste worldwide each year. On the other, refurbishing appliances remains marginal compared to the volumes of breakdowns observed.

Take a concrete example: household appliances in France. There are 28 million breakdowns recorded nationwide each year. Yet only 5 million lead to a repair intervention. This corresponds to a repair rate of 18%. This ratio reveals the extent of the untapped potential. Sector players estimate that this proportion is comparable in other major European markets, suggesting considerable opportunities.

This situation is partly explained by persistent psychological barriers. One might think that in the current economic and, whatever one says, inflationary context, consumers would make informed decisions. Judge for yourself. According to the excellent company Murfy (this is not a sponsored post; I really like Murfy’s model and the success of its boss Guy), repairing a washing machine costs €91 compared to €461 for a new appliance. The psychological threshold remains set around one third of the price of new, beyond which buying a replacement product becomes more attractive.

Public policies can help

Government intervention is gradually changing the game. Here again, take a concrete example. The repair bonus was launched in France at the end of 2022 as part of the AGEC law (Anti-Waste Circular Economy) and I find, despite all its imperfections, that it is a good illustration of this desire to support change. The French government has released an envelope of €410 million until 2026 to subsidise repairs. Aid ranges from €10 to €60 depending on products.

The results are encouraging: the monthly number of repairs has gone from around 21,000 to more than 51,000 in a few months. However, after one year of implementation, only 165,000 repairs had benefited from the bonus, far from the 500,000 expected. The main challenge remains awareness of the scheme, since 70% of consumers say they have not heard of it.

Behaviour change is underway

Beyond public incentives, we are observing a structural transformation of consumption habits. Purchases motivated by a breakdown are declining.

For washing machines, the share of replacements linked to a breakdown fell from 87% in 2018 to 77% in 2023. This evolution is even more marked for laptops (drop of 36 points) and smartphones (decrease of 21 points). These figures testify to a progressive awareness among consumers.

At the same time, 35% of consumers admit to not maintaining their appliances sufficiently. Extending product lifespan therefore involves education and advice. This evolution opens new opportunities for sector professionals, who can develop support and prevention services. We can also rejoice that this need for advice can be better met in physical stores than on websites. Let us hope therefore that customers will recognise the value of local commerce and return to it. Our city centres need it.

Traditional barriers nevertheless persist: perceived intervention price, delays and cost of spare parts. The latter represent around 8% of a product’s price in large household appliances, but can reach 31% for televisions, illustrating sectoral disparities.

An ecosystem in full structuring

The repair market must be considered as a brick within a more complex ecosystem. Repairing ultimately fits into a value chain that includes:

• refurbished
• second hand (we will remember that the market first structured around second-hand luxury before extending to other segments)
• rental
• subscriptions.

This convergence creates new synergies and multiplies business opportunities. This is why this article opened on entrepreneurial opportunities still to be seized in the sector. We are only at the beginning and Murfy’s success in France shows that powerful scale-ups can be launched.

Continuing with France, 40% of consumers there bought a refurbished home equipment product in 2023, an increase of 8 points in one year. On the smartphone market, one in five devices in circulation is refurbished, with 3.1 million units sold, while the new market declined by nearly 10%.

Players like Back Market, which achieved €700 million in business volume in France in 2024 with growth of 9.4%, are structuring this dynamic at European level. The company is also announcing an extension of its activities towards repair, with the opening of hundreds of physical contact points.

At the level of European e-commerce, second hand represents around 6.5% of non-food sales, with strong national disparities: 11% in France, 7.7% in the United Kingdom, 7% in Spain, 5.5% in Italy and 3.3% in Germany. These gaps illustrate different levels of maturity but a convergent trend towards credible alternatives to new.

In France, 40% of consumers bought a refurbished home equipment product in 2023, an increase of 8 points in one year.

Distributors are changing their model

For major distributors, repair is becoming a strategic lever after having been an autonomous “profit centre”. This approach fundamentally transforms their customer relationship and competitive positioning. We move from an approach where repair is seen as a “separate” activity, to a model where it is fully integrated.

Decathlon is in my opinion the best illustration. In France, the circular economy, including repair, rental and second life, represents 3.8% of its revenue, up 21% year-on-year. The brand repaired 2.3 million products and shows annual growth of circular models exceeding 30%.

Fnac Darty repaired 2.1 million appliances in 2022 and aims for 2.5 million per year, supported by its Darty Max subscription. This service had 800,000 subscribers at the end of 2022 and aims to reach 2 million in 2025. Boulanger adopts similar logic with its Club Infinity, offering a subscription at €15.99 per month for one appliance or €24.99 for a family formula covering up to five appliances, including smartphones.

This subscription approach revolutionises the sector’s economy by transforming repair from a one-off cost into a recurring service, creating a lasting relationship with the customer.

At Decathlon France, the circular economy, including repair, rental and second life, represents 3.8% of revenue, up 21% year-on-year.

The industrialisation of repair services

Market structuring also involves the industrialisation of repair services. Technological platforms are emerging to federate professional networks and optimise processes.

Dealt, for example, federates networks of more than 10,000 professionals and raised €6 million to operate repair, installation and maintenance services for distributors in Europe. This approach allows standardising services while maintaining dense territorial coverage.

In fashion, the French startup Prolong raised €1.5 million to offer a white-label BtoB repair platform, already deployed in eight countries.

Needless to say that data collection and use are essential in this sector:

• optimisation of rounds
• management of spare parts stocks,
• technician training
• intervention traceability

The repair sector, because it includes a high share of manual work, must optimise its margins to be attractive compared to buying a new product.

Profitability challenges and new economic models

Despite these promising developments, the question of profitability remains central. In second hand and refurbished, margins rarely exceed 30% before costs, limiting the viability of purely transactional models.

This constraint pushes players to rethink their approaches. In games and toys, second hand already represents 5.9% of revenue, or €270 million, with annual growth of 26%. However, it has reduced market growth by 1.3 points, illustrating partial cannibalisation of new.

In children’s textiles, second hand weighs 3.3% of revenue and 6.3% of volumes. These markets show that repair and second hand are often thought of as traffic, loyalty and image levers rather than isolated profitable activities.

This economic reality explains why distributors integrate these services into a global strategy rather than developing them as autonomous profit centres.

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Towards a sustainable transformation of the European market

At European level, convergence between regulation, behaviour and company strategies is becoming increasingly visible. The rise of repair channels rests on 3 legal elements

• strengthening of the right to repair
• evolution of the repairability index towards a durability index
• rise of extended producer responsibility channels

However, this framework remains insufficient to massively transform uses. The challenges to be met are multiple:

• lift profitability barriers
• train enough qualified repairers
• design products that are truly repairable from the origin

This last condition is crucial but remains a challenge, especially in a multipolar world dominated by China and where European production is gradually erased from the territory. Without repair-oriented design, downstream efforts will remain limited. Manufacturers must integrate repairability as a design criterion on the same level as performance or aesthetics. Unless this is imposed legally, there is little chance that Chinese manufacturers will comply.

The repair market thus appears as a sector with very high potential in Europe, capable of transforming an environmental constraint into a sustainable economic advantage. The conditions are in place for significant growth, provided that all players – public authorities, industrials, distributors and consumers – commit to this transformation.

Frequently asked questions about the repair market

What factors explain the development of the repair market?

Several factors are currently converging. First, environmental awareness is pushing consumers to seek alternatives to “throwaway”. Then, new European regulations, such as the right to repair, create a favourable framework. There are then technological innovations that allow industrialising services and reducing costs. And finally, there is the economic situation. The loss of purchasing power of European households is pushing them, with a few exceptions, to seek ways to save money. Repair is part of it. It is the combination of these elements that creates this unique dynamic.

What are the most promising sectors in repair?

Household appliance and consumer electronics sectors offer the best opportunities, with large volumes and interesting margins. Textiles are also starting to take off, but focus should be on the high-end segment, the only one where purchase prices can justify this type of investment. Finally, emerging sectors such as electric bikes or connected objects represent new activity deposits.

How do consumers perceive repair today?

Studies show that mentalities are evolving rapidly. Here again, take the example of France which is a pioneer with the “Repair Bonus”. If 70% of French people do not yet know the repair bonus, 40% have already bought refurbished. The main barriers remain perceived price and delays, but quality perception is improving. Younger generations are particularly receptive, seeing repair as both an economic and ecological gesture.

What are the main challenges for entrepreneurs in the sector?

The number one challenge remains training qualified technicians – the sector is desperately short of specialised labour. Then, logistical complexity must be managed, particularly for spare parts. Finally, building consumer trust takes time and communication investments. But these challenges are surmountable with a structured approach. If your ambition is to create a national network, then internal training is essential.

Can the repair market really compete with new?

Rather than competing, it is about complementing the new offer. Data from the latest market studies show that repair and second hand create new uses rather than massively cannibalising new. The objective is not to completely replace new purchases, but to offer viable alternatives that extend product lifespan. It is a complementary market that meets new needs.