The global smartphone market was valued at US$ 724.9 Bn in 2020 is expected to reach US$ 1,425.6 Bn by 2027, with a growing CAGR of 11.5% during the forecast period (2021-2027).
Smartphone provides advanced capabilities to its user for business application, information gathering and for entertainment and communication. The rising integration of artificial intelligence in smartphones is driving the market demand. Additionally, the rising demand for 4G network is accelerating the market growth. However, data security and privacy concerns are hampering the smartphone market growth.
The growing manufacturing of foldable smartphones along with the rising production of 5G compatible smartphones is proliferating the industry growth. The consumer awareness and knowledge of 5G are increasing as the hype makes way for reality. The smartphone consumers from the Middle East, China, and South Korea tend to be the most willing to upgrade to 5G, whereas those in Europe, Japan, and the U.S., are satisfied using 4G for the time being. Thus, the major demand for 5G compatible smartphones is anticipated to be driven by countries across the Asia Pacific and the Middle East region.
In addition to this, business organizations are shifting to smartphones for use in business operations owing to greater flexibility, ensures improved communications, and improves employee productivity and efficiency by ensuring enhanced workflows. In addition to this, smartphones are less costly compared to computers/ laptops and are capable of offering the majority of the functions that computers/ laptops provide. Smartphones are portable and make remote communication possible, and are highly beneficial for businesses that are boosting the market revenue.
The Global Smartphone Industry Segmentation:
Based on the operating system, android accounted for 72.3% of the total volume share in smartphone market size
The android operating system accounted for the largest market share in 2020 and is anticipated to maintain its position throughout the forecast period. The major factor contributing to the largest share of android is a large number of smartphone manufacturers use android as their operating system. It is also more popular among smartphone users owing to its compatibility with other devices and accessories. Additionally, smartphones with the android operating system are available in a wide price range and are affordable to consumers across all income levels. This is particularly important for consumers across developing economies with a weak dollar exchange rate. With more manufacturers choosing android as their operating system it provides an excellent range of device variety for users to choose from.
Based on the distribution channel, the offline channel accounted for 57.9% market share in the base year 2020
The smartphone market analysis based on distribution channel is segmented as offline and online. The offline sales accounted for the largest market share in 2020, however, the offline distribution channel is growing at a high rate the online distributors such as Amazon and Flipkart are attracting customers to buy online. Furthermore, amid the coronavirus pandemic, smartphone manufacturers are also focusing more on online sales as there is a lockdown in most of the regions across the globe. Additionally, online sales will allow safe purchase as it will reduces the touch points along the distribution process.
Based on geography, Asia Pacific accounted for approximately 37.2% share in the smartphone industry in 2020
The major demand for smartphones in the region is driven by the presence of major smartphone manufacturing companies including Xiaomi Corporation, Huawei Technologies Co. Ltd, Samsung Electronics, Nokia, Vivo Communication Technology Co. Ltd., and OnePlus Technology Co., Ltd., among others. Moreover, the governments from the countries such as India and China in the Asia Pacific region are supporting local manufacturing with the initiatives such as ‘Make in India’ and ‘Made in China 2025’. These initiatives are encouraging more companies to start manufacturing in China and India to leverage the benefits provided by the governments. The region is witnessing a rise in start-ups in the smartphone industry further proliferating the market growth.
Company Profiles and Competitive Intelligence: The major players operating in the global smartphone market are BlackBerry, Huawei Technologies Co. Ltd., Xiaomi Corporation, Vivo Communication Technology Co. Ltd., Apple Inc., Samsung Electronics, Oppo, Lenovo, LG, Nokia, and Motorola., among others.
The report also provides an in-depth analysis of smartphone market dynamics such as drivers, restraints opportunities, and challenges
COVID-19 Impact on the Smartphone Market Analysis
The COVID-19 hardly hit the sales of smartphones with the most significant drop witnessed in the first quarter of 2020. The smartphone shipments fell by 272 million in Q1 of 2020. The countries such as China, U.S., and Western Europe witnessed a drastic decline in shipments. The total shipment of smartphones in China declines by 20.3% in Q1 2020. The production of smartphones also deteriorated owing to the shutdown of factories to abide by government regulations. However, the industry also witnessed some positive trends due to work-from-home culture and e-learning during the pandemic. Small businesses now are relying more on smartphones to reach out to a wider audience.
The report also provides an in-depth analysis of key trends in the Smartphone market:
|1||Consumers are very excited about foldable smartphones which are in their nascent stage and the demand is anticipated to witness significant growth in the upcoming years||Positive|
|2||The faster-charging speed of smartphones reached new heights in 2020. This is trend was also witnessed among the budget phones.||Positive|
|3||Increasing launch of 5G compatible devices and smartphones in line with the consumer expectations to support the smartphone market||Positive|
|4||Rising integration of technologies such as augmented reality, artificial intelligence, and other wearable technologies in the smartphones||Positive|
The report also provides an in-depth analysis of recent news, developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the market are:
The unique insights provided by this report also includes the following:
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