|Fastest Growing Market:||Africa|
|Largest Market:||Asia Pacific|
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The Global Smartphone Market is expected to grow by 4% during the forecast period (2022-2027). Factors such as increasing disposable income, development of telecom infrastructure, the emergence of budget-centric smartphones, and an increasing number of product launches are contributing to the growth of the smartphone market in Asian countries.
- The smartphone industry has been steadily developing and growing, both in terms of market size and models. Globally, by 2021, 40% of the world's population is predicted to own a smartphone. According to Ericsson, the number of smartphone subscriptions worldwide surpasses six billion and is expected to grow by several hundred million in the next few years further. China, India, and United States are the countries with the highest number of smartphone users.
- The Covid-19 pandemic has severely disrupted the balance between supply and demand in the smartphones market. Since China is the global manufacturing center for most of these devices and components, and with nationwide lockdown, the smartphone manufacturing sector has been adversely hit by delayed shipments and weakened development of next-generation products. Also, the country has witnessed being choked off from suppliers, workers, and logistics networks. Moreover, consumer demand for smartphones, especially of the premium segment, has witnessed a decline due to the tendency of customers to cut down on luxury spending and focus on essentials due to the pandemic.
- According to the Consumer Technology Sales and Forecast study, which was conducted by the Consumer Technology Association (CTA), the revenue generated by smartphones was valued at USD 77.5 billion in 2019, respectively. Due to the pandemic, CTA projected revenue to reach USD 71 billion, a decline of 6% year-over-year. However, CTA projects the smartphone industry to bounce back in 2021, generating over USD 78 billion in shipments.
- Xiaomi, which overtook Samsung to take a dominating spot in Indian smartphone shipments in the recent past, claims to now have seven manufacturing facilities in the country. Xiaomi India claims that 99% of the phones that it sells in the country are locally built. The company has also begun exporting devices to Bangladesh and Nepal, albeit in limited quantities.
- The improvement in consumer outlook, sustained learning, and working from home, along with pent-up demand from 2020, boosted the sales of smartphones in 2021. In addition, consumers started spending on discretionary items as the pandemic situation improved in many parts of the world and markets opened. However, the global chip shortage may affect the smartphone industry as the demand and supply equilibrium will not meet and could increase the average selling price of smartphones globally.
Scope of the Report
Smartphones, with strong hardware capabilities, extensive mobile operating systems, wider software applications, internet, and multimedia functionality (music, videos, and gaming), alongside core phone functions such as voice calls and text messaging, are considered in the scope. Smartphones used for industrial purposes, otherwise known as rugged phones, are not considered in the scope. The market is segmented by operating system and geography.
The Smartphones Market is segmented by Operating System (Android, iOS) and Geography.
|By Operating Segment|
|Asia Pacific (Excluding China)|
Key Market Trends
Android Operating System is Expected to Grow Significantly
- According to StatCounter, Android remained the world's most popular mobile operating system in January 2022, with a market share of close to 70%, while iOS accounted for roughly 25% of the market.
- Furthermore, many application developers prefer Android OS to develop gaming/entertainment applications, social media applications, mobile utility applications, lifestyle applications, among others, as it requires the developers to have knowledge of languages, such as C++, Kotlin, Java, among others. Moreover, Google also offers various development tools, such as Android Jetpack, Firebase, and AndroidSDK, to assist developers in building a user-intuitive interface.
- Moreover, the platform allows users to download applications for free of cost; however, the applications are designed to offer in-app purchases in-app course subscriptions that have generated more revenue in Google Play Stores compared to Apple Stores. For instance, the revenue generated by coin master in April 2021 approximately accounted for USD 61.02 million through Google Play Stores, according to Air now PLC. This was followed by the GarenaFree Fire- World series and PUBG Mobile-Karakin that generated a revenue of USD 38.56 million and 37.76 million in April 2021.
- The increasing demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as energy management and smart home products, is anticipated to propel the adoption of 5G smartphones. For instance, in January 2021, OPPO India announced that it aims to launch more than six 5G-enabled devices in India this year, as 5G-ready and Internet of Things (IoT) product categories become important for smartphone players in the country.
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Asia Pacific region (excluding China) is Expected to Hold a Significant Market Share
- The demand for smartphones at the entry-level price points is expected to be driven by the increasing demand from the developing countries in the region, such as India and Indonesia, where smartphones are increasingly penetrating into the rural areas as local governments are pushing for digital and mobile economy. For instance, the Digital India program is a flagship program of the Government of India primarily aimed at transforming the country into a digitally empowered society.
- Moreover, India has also launched the PLI Scheme, which offered a 6-4% incentive for five years on incremental sales of manufactured handsets over 2019–2020. High-end multinational cell phone makers, or those producing handsets worth over USD 200, had to sell goods worth INR 400 million in 2020-21 to claim the incentives. Such initiatives by the government are expected to boost the smartphone market in the country.
- The Asia-Pacific region is one of the significant markets for smartphones, primarily owing to the highly developing telecom sector and large customer base. Further, the region is increasingly investing in the mobile network. Countries such as India, Japan, Australia, Singapore, and South Korea, are increasingly investing in the development of the domestic telecom market, which is also expected to drive the market in the region.
- In mainland China, rising smartphone adoption and the availability of 4G have resulted in a surge in mobile internet usage that supports the country’s movement up the digital-society value chain. More than 990 million people use mobile internet services, and this figure is expected to increase by a further 200 million by 2025.
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The Smartphones market is a highly competitive market, dominated by established players such as Samsung, Huawei, Apple, and Xiaomi, among others. Most of these players keep launching new models with small technology changes such as battery power, camera configuration, and/processor. Some of the recent developments in the market are:
- July 2021 - Vivo Communication Technology Co. Ltd expanded its 5G portfolio in India with the launch of the powerful Vivo Y72. Priced at INR 20,990, Y72 delivers a superior smartphone experience through its robust features while sporting a clearly differentiated design in its category. The smartphone offers 8GB+4GB expandable RAM, which prevents the phone from choking while multi-tasking.
- July 2021 - Samsung India launched a new smartphone, Galaxy A22 5G. It offers 11 bands’ support for 5G experience and two-year OS upgrades. It has a 6.6” FHD+ display with a 90Hz refresh rate, versatile 48MP triple camera, 5000mAh battery, and a host of other innovative features.
- April 2021 - Guangdong Oppo Mobile Telecommunications Corp., Ltd, launched a new sleek smartphone under its renowned F series - the new OPPO F19, in India. The OPPO F19 is a sleek minimalist device under the F19 series that comes with a 33W Flash Charge to charge the massive 5000mAh yet maintaining a lightweight and sleek design.
- June 2021 - Lenovo Group introduced its Lenovo Legion Phone Duel 2, a smartphone with Twin Turbo-Fan cooling and intuitive Octa-Trigger controls, making it a second-generation 5G gaming powerhouse. The Octa-Trigger feature gives gamers options to bind more weapons and tools.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Smartphones Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Launch of 5G Devices and Services and Technologies
5.1.2 Increasing Demand in the Emerging Markets
5.2 Market Restraints
5.2.1 Stagnating Demand
5.3 Market Opportunities
5.4 Technology Landscape of the Market
5.4.1 Smartphone Device Lifecycle Analysis
22.214.171.124 Lifecycle Through Stakeholders
126.96.36.199 Key Pain-point Analysis of Stakeholders Throughout the Device Lifecycle
5.5 Technology Roadmap Analysis
6. MARKET SEGMENTATION
6.1 By Operating Segment
6.2 By Geography
6.2.1 North America
6.2.4 Asia Pacific (Excluding China)
6.2.5 Latin America
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Samsung Electronics Co. Ltd
7.1.2 Huawei Technologies Co. Ltd
7.1.3 Apple Inc.
7.1.4 Xiaomi Corporation
7.1.5 BBK Electronics Corporation (Vivo, Realme, Oppo, and OnePlus)
7.1.6 Lenovo Group Limited
7.1.7 HTC Corporation
7.1.8 HMD Global Oy
7.1.9 Sony Corporation
7.1.10 ZTE Corporation
7.1.11 Google LLC
8. VENDOR MARKET SHARE
9. COMPETITIVE BENCHMARKING ANALYSIS
10. INVESTMENT ANALYSIS
11. FUTURE OF THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Smartphones Market market is studied from 2020 - 2027.
What is the growth rate of Smartphones Market?
The Smartphones Market is growing at a CAGR of 4% over the next 5 years.
Which region has highest growth rate in Smartphones Market?
Africa is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Smartphones Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Smartphones Market?
Samsung Electronics, Apple Inc., Huawei Technologies Co., Ltd., Xiaomi Corporation, Vivo Communication Technology Co. Ltd are the major companies operating in Smartphones Market.