Market Trends of North America IT Device Industry
This section covers the major market trends shaping the North America IT Device Market according to our research experts:
Stellar Smart Phone Penetration
- In advanced economies like the United States and Canada, there is a significant demand for smartphones since urban populations are far more likely than rural ones to use cell phones. According to the GSMA, in North America, 329 million individuals, or approximately 84% of the population, were subscribers to mobile services last year. The expected number of subscribers by the end of 2025 is 341 million, or around 85% of the population.
- There were 303 million mobile internet users in 2021, which is expected to grow to 322 million in 2025. Mobile internet penetration in North America is expected to rise from 77% in the last year to 80% in 2025. The rapid penetration of mobile internet coverage across the region is a prime cause of the demand for smartphones in North America. By the end of the previous year, North America witnessed a smartphone penetration rate of 83%, which is expected to rise to 86% by 2025. Smartphones would represent, on average, over nine out of ten connections by 2025 in North America.
- Also, there would be an expected surge in the number of new SIM connections in North America, from 413 million last year to 431 million in 2025. The demand for new mobile devices can be forecasted in the next few years from the anticipated rise of new SIM connections. By 2025, North America's economic contribution from mobile will expand by USD 100 billion, mostly because of the continuous growth of the mobile ecosystem.
- According to GSMA Intelligence, 5G adoption is rapidly increasing in North America and is expected to take over the wireless services market by 2025. As per the report, North America had 14% 5G coverage last year, which is anticipated to reach 64% by the end of 2025. Several large smartphone manufacturers across the region are concentrating on releasing 5G devices to meet the rising demand for 5G-capable handsets from tech-aware customers. Demand for 5G-enabled devices is anticipated to rise in the region.
As per Ericsson, by 2027, North America is estimated to have approximately 411 million 5G subscribers. There were 80 million 5G subscriptions in North America last year.
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United States Controls the Majority of Demand
- Rapid mobile broadband coverage across the United States is a significant driver of the rapid adoption of smartphones in the country. According to the GSMA report, smartphones accounted for 85% of mobile phone subscriptions in the United States over the last year, with tablets accounting for 83%.The country's mobile phone market is expected to grow with a robust smartphone adoption rate. As per the reports, mobile subscriber penetration in the country is expected to reach around 86% by 2025, with a smartphone adoption rate as high as 85%.
- In terms of 5G adoption, the United States is among the top countries in the world, resulting from operators' aggressive 5G implementation plans and a booming ecosystem of devices and content. By 2025, the United States is expected to have 68% 5G coverage. This would contribute to the shift in people's demand from basic smartphones to IoT and 5G-enabled smartphones, thereby changing the entire mobile ecosystem.
- As of September this year, Apple had the largest smartphone market share of 55.4% in the United States. The company itself makes more than half of all cell phones sold on the market. Samsung is far behind Apple in terms of market share. Its market share of 30.11 percent is 25.34 percent less than Apple's.With 4.93% of the smartphone market, Motorola is in third place, followed by Google and LG.
- The U.S. market has shown resilience with consistent tablet device sales and even increased shipments, even though tablet sales have been flat or even dropping elsewhere. In terms of yearly shipments of tablet units, the United States has the largest tablet market in the world. With its iPad product line, the California-based tech giant corporation Apple has been a global tablet industry leader since its inception. Apple tablets account for around 60% of all tablets in the United States, with Samsung and Amazon rounding out the top three.
- With approximately 54% of the nation covered as of October this year, T-Cell was the mobile provider with the most widespread 5G coverage in the United States. AT&T covered nearly 30% of the U.S., and nearly 13% of Verizon had access to 5G.
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