Smartphone Market Size (2023 – 2030)

The Global Smartphone Market was estimated to be worth USD 532.15 Billion in 2022 and is anticipated to reach a value of USD 1,004.85 Billion by 2030, growing at a fast CAGR of 8.27 % during the outlook period 2023-2030.

A smartphone is a type of mobile device that enables increased access to online resources and other digital features. Numerous applications developed by third parties are supported by platforms like iOS, Android, Windows Phone, and others. Governmental backing for the development of telecom infrastructure, product launches that prioritise cost, the emergence of 5G technology, Artificial Intelligence (AI), and other technologies, and most significantly, rising disposable income, all contribute to the market's expansion. Additionally, according to the Global System for Mobile Communications (GSMA), using mobile phones specifically reduces commuter and leisure trips. The saved emissions facilitated by mobile technologies seen in 2018 might double by 2025. As a result, it increased end-user demand for manufacturing and usage. By 2022, 75.0% of people would own a smartphone, according to the GSMA. Furthermore, the market is growing as a result of the main firms, including Samsung, Apple, Inc., Sony Group Corporation, Oppo, and Vivo, among others, regularly releasing cutting-edge mobile goods featuring 5G technology. For example, the Sony Group Corporation unveiled the Xperia PRO-I product in October 2021. This device combines focusing and advanced picture processing, 4K 120p video recording, a 1.0-type sensor, and other characteristics to provide its end consumers with a novel experience.

Global Smartphone Market Drivers:

Increasing disposable income worldwide is expected to drive the growth of the global smartphone market.

Consumption of media, entertainment, mobile technology, and networking has become more likely as a result of rising disposable income among consumers worldwide. Electronics purchases, including those of smartphones, laptops, tablets, and gaming consoles, have significantly increased in recent years. A 2016 independent survey of electronic device suppliers found that demand for smartphones has significantly increased as a result of rising consumer disposable income, particularly in emerging markets. Therefore, it is anticipated that rising disposable income will fuel the expansion of the worldwide smartphone market throughout the forecast period.

Increasing investment by manufacturers in R&D is expected to propel the global smartphone market growth.

To create technologically cutting-edge gadgets that appeal to modern customer tastes, smartphone makers are investing more money in research and development projects. In addition, manufacturers are spending money on the design and construction of their application processors (AP) to hold onto market share and increase profit margins. One of the most coveted brands in the global smartphone market, for instance, is Apple Inc., which produces its own AP. As a result, it is anticipated that rising R&D spending will support the global smartphone industry during the projection period.

Increasing adoption of human-system interaction is driving growth in the global smartphone market.

The phenomena of human-system interaction are currently what primarily drives the global technology market. Accordingly, suppliers and producers of mobile phones should look for opportunities in the current trends. Mobile phone connectivity finds use in a variety of industries, including transportation, fleet management, healthcare, smart metres, human traffic, infrastructure security systems, and others. Mobile sensors have expanded the possibilities for human-computer interaction, which is driving up demand.

Additionally, governments in several nations, like India, China, Taiwan, the U.S., and others, are depending increasingly on providing digital information, education, and other related services. This has undoubtedly increased demand. The eventual growth of the global market is being boosted by this. As a result, there has been an increase in the use of human-system interaction practises which is bolstering the global mobile phone market growth.

Global Smartphone Market Challenges:

Premium smartphone manufacturers like Apple Inc. and Samsung provide high-end phones, which have recently experienced increasing demand, particularly in wealthy nations like the U.S., Canada, and European countries. However, in regions where customers are sensitive to pricing, like China and India, consumers prefer smartphones that offer the same functionality as high-end smartphones at a more reasonable cost. Additionally, mature markets like those in North America and Europe are saturated, which is anticipated to restrain the expansion of the global smartphone market over the course of the projection year.

For high-speed mobile broadband connectivity that enables quick online browsing and fluid video streaming, 4G LTE mobile cellular technology is used. Voice messaging, voice chat/video calling, and SMS together accounted for over 85% of all smartphone service revenue worldwide, according to Coherent Market Insights analysis. Additionally, voice messaging, chat/video calling, and SMS are not included in the marketing strategies of service providers. So, during the projected period, these issues are anticipated to restrain the expansion of the global smartphone market.

Global Smartphone Market Opportunities:

The rollout of 4G services in several emerging economies is anticipated to increase smartphone sales. To meet the rising demand for 4G-enabled smartphones, many smartphone manufacturers might concentrate on releasing 4G devices. In addition, as demand for 4G smartphones rises, 3G smartphone prices are anticipated to fall, leading to increased sales volume for 3G smartphones as a result. Shortly, these variables are anticipated to present attractive growth opportunities. The increasing adoption of smartphones among consumers between the ages of 18 and 34 is anticipated to fuel market growth for smartphones worldwide over the course of the projected period, according to Coherent Market Insights data. To attract a younger population shortly, smartphone makers can target the aforementioned age group of consumers by providing premium features like smooth voice control and flexible screens. Over the projection term, such strategies may offer significant market potential.

COVID-19 Impact on Global Smartphone Market:

The World Health Organisation classified COVID-19 as a pandemic in March 2020. Without a doubt, it has impacted practically every market. In the mobile phone industry, it has seriously upset the equilibrium between supply and demand. Consequently, the shipments decreased. A widespread lockdown in China, India, the United Kingdom, the United States, and other important nations is the main cause.

Component shortages, particularly those of semiconductor components during the pandemic, increased logistical costs, currency and tax devaluations, quarantine requirements, travel limitations, and other factors were some of the reasons for the rising costs in a few nations. Consumer purchasing behaviour is still being impacted by the COVID-19 pandemic, which has once more started to do so.

Accordingly, despite a great start at the beginning of 2021, the sales in the Q2 and Q3 of 2021 were negatively impacted by tightened rules on working from home, the closure of factories across several countries due to the second wave in 2021, as well as retail firms closing and limitations on online deliveries. Nevertheless, the market players were well-prepared for the interruption this time around in front of demand in the second and third quarters of 2021.

Long-term improvements in buying patterns as a result of the work-from-home idea, the deployment of 5G technology, and other factors have led to significant market growth. Furthermore, according to the International Data Corporation (IDC), smartphone shipments increased 7.7% in 2021 compared to 2020. Thus, it is anticipated that the global market will witness strong growth in the forecast period.

Global Smartphone Market Recent Developments:

• In September 2022, Comcast and Samsung Electronics announced their partnership to create 5G Radio Access Network (RAN) technologies that will enhance 5G connection for Xfinity Mobile and Comcast Business Mobile users in Comcast service zones. Samsung will provide 5G RAN technology, and Comcast will deploy Citizens Broadband Radio Service (CBRS) and 600 MHz spectrum to provide 5G access to consumer and business users in the United States.

• In October 2022, Huawei announced the release of the Maxwell platform and the X2 antenna series as part of the latest antenna solutions for the next stage of 5G antenna innovation. The new technologies speed up 5G deployment by improving antenna integration and setup capabilities.

• In September 2022, the iPhone 14 and iPhone 14 Plus, which come in two sizes, 6.1 and 6.7 inches, and include a smart design, camera upgrades, and game-changing new safety measures, were introduced by Apple. The iPhone 14 and iPhone 14 Plus have a powerful camera system that incorporates the primary and front TrueDepth cameras, the Ultra-Wide camera for uncommon perspectives, and the Photonic engine, an enhanced picture pipeline.

• In October 2022, Samsung Electronics announced that its network solutions, including the cloud-native 5G Macro Core and Radio Access Network (RAN), had successfully supported NTT East's private 5G network growth while also enabling new and varied use cases for businesses in a variety of Japanese industries.

SMARTPHONE MARKET REPORT COVERAGE:

Global Smartphone Market Segmentation: By Price Range

• Low Range

• Medium Range

• Premium range

Three pricing categories—low range, medium range, and premium range—are used to categorise the global smartphone industry. The medium-range segment will dominate the global smartphone market in 2022 as millennials' disposable income increases and their preference switches from low-end to medium-end smartphones due to their superior features and specifications.

Global Smartphone Market Segmentation: By Operating System

• Android

• iOS

• Windows

• Others (Linux)

As demand for Apple phones increases, it is predicted that the iOS category will rise dramatically. In addition, developing nations like India, China, South Africa, and others are seeing an increase in demand for Apple phones, particularly among the younger generation. IOS produces less heat and is more document-friendly than other operating systems.

The majority of the market share belongs to the Android sector. Except for Apple products and a few others, practically every phone runs on the Android OS, which was created by Google LLC. It provides an open environment, economical continuous development, and a customised user interface. The market's highest shares are the result of that.

Windows and other categories are growing slowly because the Android and iOS segments account for about 90.0% of the market. The demand for Windows and other segments has decreased due to the growing popularity of Android and iOS.

Global Smartphone Market Segmentation: By Distribution Channel

• OEMs Stores

• Retailer

• E-commerce

The E-commerce segment is in the best position to lead the market in terms of CAGR in the forecast period. Work-from-home concept and augmented online buying facilities are boosting the E-commerce segment growth.

Apart from this, as a form of E-commerce, the 'M-commerce' concept is boosting the buying and selling of goods via mobile phones. Online purchases are more or less via the E-commerce sector, thus, propelling its demand.OEMS are original equipment manufacturers. They are predominantly launching their factory outlets across India to drive smartphone market share. However, the COVID-19 pandemic forced companies to shut their stores, in countries without seeking help from third parties. As a result, the outlets are growing across the countries. For instance, in March 2021, Vivo Mobile Communication Co., Ltd. stated that the company is opening 150 exclusive stores thus, widening the buying from E-commerce sites. Whereas, retailers are probable to capture considerable market shares in the forecast period attributed to their prerequisite across developing and low-population countries.

Global Smartphone Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East and Africa

• South America

The Asia Pacific area will account for more than 40% of the global smartphone market by 2022. The most favoured locations for IT businesses are China and India. The expansion of the smartphone market is being driven by factors such as rising disposable income and rising population in this region. The demand for smartphones is anticipated to rise shortly as people in Asia and the Pacific region adopt new technology and services at an increasing rate. While shipping is anticipated to decline, the North American and European regions are forecast to grow at a CAGR of more than 3% during the projection period. This is due to the maturity of the smartphone market in certain regions.

Global Smartphone Market Key Players:

1. Apple Inc.

2. HTC Corporation

3. Huawei Technologies Co. Ltd. (Huawei Investment & Holding Co. Ltd.)

4. Lava International

5. Lenovo Group Limited

6. Nokia Corporation

7. Realme Chongqing Mobile Telecommunications Corp. Ltd. (BBK Electronics Corporation)

8. Samsung Electronics Co. Ltd.

9. Sony Corporation

10. TCL Technology

11. Xiaomi Corporation

12. ZTE Corporation.