According to a survey by Gartner 60 percent of consumers are replacing their smartphones because they are interested in additional functionality.
Gartner estimates, the worldwide market for refurbished phones will grow to 120 million units by 2017 with wholesale revenue of around $14 billion.
It will grow from 56 million units in 2014, with an equivalent wholesale revenue of $7 billion.
Gartner surveyed 5,600 U.S. and German consumers about their technology usage in order to gain a clear view of how devices are used for work.
The survey suggest that, demand for high-end used devices will increasingly impact primary-unit sales, and motivate phone providers to look into the secondhand market.
Gartner also estimates that refurbished phones will be around $3 billion in 2015 and grow to $5 billion in 2017.
The survey showed that 53 percent of tech users said they would replace their smartphones in the next 12 months, with 56 percent claiming that their current phones were less than a year old.
Nearly half said that their replacement phones would be driven by new features or functionalities that can be found only in the new devices.
“The survey shows that, in the U.S. and Germany, 41 percent of used smartphones find new owners via private sales or trade-ins. This trend applies to all levels of technology users, however, users who identify themselves as ‘tech enthusiasts’ in particular should be targeted to shift their behavior away from private sales and toward trade-ins.” said Meike Escherich, principal research analyst at Gartner.