The global smartphones market is expected to progress at a robust CAGR of 7.8% from its current worth US$ 774 Bn. The smartphones industry is anticipated to increase 2.1X in valuation by the end of the decade.
This intelligence study by Persistence Market Research details the smartphones industry and provides valuable insights to make informed business decisions. The United Kingdom holds more than 35% of the market share in the European region for smartphones.
Find Out More about the Report Coverage
- Samsung Electronics Co., Ltd.
- Apple Inc.
- Huawei Technologies Co., Ltd.
- Lenovo Group Limited
- LG Electronics Inc.
- TCL Communication Technology Holdings Limited
- ZTE Corporation
- Vivo Communication Technology Co. Ltd.
Key Points Covered in Smartphones Industry Survey:
- Market estimates and forecast 2021-2031
- Key drivers and restraints impacting market growth
- Segment-wise, country-wise, and region-wise analysis
- Competition mapping and benchmarking
- Brand share and market share analysis
- Key product innovations and regulatory climate
- COVID-19 Impact on sales of smartphones and how to navigate
- Recommendation on key winning strategies
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How is the Smartphones Market Evolving?
The 21st century saw the revolutionary effect of mobile phones, and as the trend progressed, it morphed into smartphones, and the world has not been the same ever since. Smartphones have become an integral part of our lives, and to some extent, a necessity in the modern world. As newer smartphones are launched, the trend gains impetus more than it was prior to the launch of new technology.
Nokia, a popular name in the mobile phone industry, has somewhat been on the back foot since smartphones gained popularity. But now Nokia has been trying to get into the race with the launch of some really cost-effective, yet good smartphones.
Nokia recently launched its XR20, which is a very durable phone and comes with IP68 and MIL-STD-810H, making it a very durable and tough phone. A unique approach in the ever-growing sea of smartphones has become a necessary factor to gain an edge over the competition. Through the launch of XR20, Nokia plans on exploiting the durability factor of smartphones and gain an edge in the landscape.
The manufacturing industry has taken a major hit during the pandemic; the world is now experiencing a major shortage in semiconductors and chips. The pandemic has made it very difficult to cope up with the increase in demand for electronics.
This shortage of electronic components is expected to impact the smartphones industry soon, and the trend is expected to follow through some part of 2022 as well.
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The global smartphones market is expanding at a rapid pace and is projected to register a healthy CAGR of 7.8% during the forecast period 2021–2031. In terms of value, the global smartphones market is projected to show healthy incremental opportunity during the forecast period.
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Key Market Drivers and Trends
Smartphones are the most demanded electronic devices today owing to a change in the lifestyle of people, where owning a smartphone is not just a necessity but a norm. Rising disposable income increases the probability of consumer spending on media, entertainment, and networking and mobile communication; leading to higher potential sales of consumer electronics such as smartphones, tablets, laptops, and gaming consoles.
The instances of smartphone adoption are very high among the urban population as compared to the rural population – and hence there is high demand for smartphones in developed regions (where the urban to rural population ratio is higher than developing regions).
To differentiate their products from competitors, smartphone manufacturers such as Apple Inc., Samsung Electronics Co., Ltd., Huawei Technologies Co., Ltd., Lenovo Group Limited, and LG Electronics Inc. are investing in the development and production of their own application processor (AP) to maintain market share and margins.
With a rising trend of m-commerce particularly among the working population, there is an increasing demand for smartphones with top-notch features supporting m-commerce. Growing internet penetration, increasing marketing activities by vendors, and rising subscription in social media are some of the other key factors driving the growth of the global smartphones market.
Market Projections by Segmentation
The global smartphones market is segmented on the basis of Operating System (Android, iOS, Windows, Blackberry Operating System, Other (Sailfish, Tizen, and Ubuntu)) and Distribution Channel (OEM, Retailer, e-Commerce).
On the basis of operating system, the iOS segment is anticipated to account for a relatively high value 3/5 share of the global market. The Android segment is expected to follow closely with 2/5 share in terms of value. In terms of volume, the Android operating system is estimated to account for the largest market share of nearly 70% by 2031.
The android segment is likely to register a high CAGR between 2021 and 2031 and this can be attributed to an increase in the demand and supply of reasonably priced android smartphones.
By distribution channel, the e-Commerce segment is expected to exhibit a high growth rate of nearly 8% and the OEM segment with approximately 7% growth rate by the end of 2031.
The global smartphones market has been segmented on the basis of region into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan, and the Middle East and Africa (MEA). The APEJ region is projected to remain dominant throughout the forecast period.
The United Kingdom is anticipated to account for nearly 35% market share in Europe in 2021. MEA is projected to be the fastest-growing market over the forecast period. Demand for smartphones in South Korea is expected to surge at a CAGR of 7%.
Top Market Players
The report profiles some of the leading manufacturers of smartphones. The top market players featured in the report include Samsung Electronics Co. Ltd., Apple Inc., Huawei Technologies Co. Ltd., Lenovo Group Limited, LG Electronics Inc., TCL Communication Technology Holdings Limited, ZTE Corporation, and Vivo Communication Technology Co. Ltd.
FAQs Answered in Market Study
- What is the current smartphones industry size?
The global smartphones market is worth approximately US$ 774 Bn.
- How will the market fare over this decade?
The global smartphones industry is expected to progress at a positive CAGR of 7.8% and attain a market worth of US$ 1.6 trillion by the end of 2031.
- At what pace did the market expand over the past 5 years?
The market expanded at a healthy CAGR of 6.6% over the past 5 years.
- What is the market share held by Samsung, Apple, Vivo, Xiaomi, and OPPO?
Top 5 manufacturers - Apple, Samsung, Vivo, OPPO, and Xiaomi collectively account for approximately 69% of the global market share.
- Which are the most demand-intensive markets for smartphones?
The U.S., China, India, Japan, and South Korea are the most demand-intensive markets for smartphones.
- Which nations are key exporters of smartphones?
China, Japan, and the U.S. are leading exporters of smartphones.
- What aspects are driving the demand outlook for smartphones?
Rising disposable income, emergence of budget-friendly smartphones, and increasing product launches are factors that are guiding the demand outlook for smartphones.
- Which trends are popular in the smartphones market?
Increasing online sales of smartphones coupled with rising adoption of AI are two major trends shaping the smartphones industry.
- How lucrative is the smartphones market in Japan and South Korea?
The Japanese smartphones market is expected to progress at a CAGR of 6.9% and the South Korean market is anticipated to surge higher at a CAGR of 7.1%.
- What is the outlook for the European market?
The United Kingdom holds nearly 35% of market share in the European region.
- Which factors will drive smartphone sales in North America?
Growing demand for smartphones among the young population is a major factor influencing growth in the North American market.