GLOBAL WI-FI PHONES MARKET SIZE (2023 - 2030)

According to estimates, the Wi-Fi Phones market would be worth USD 13.04 bn in 2023 and USD 29.68 bn in 2030, growing at a 17.8% CAGR.

Industry Overview:

The increasing demand for smartphones and gadgets around the world is increasing the demand for Wi-Fi Phones. Wi-Fi Phones are the phones which can be connected to a Wi-Fi network. These phones provide good connectivity services. The significant growth of Wi-Fi in the workplace, schools, and universities is increasing the demand for Wi-Fi phones. The Wi-Fi network can be easily accessed by these phones and by using this network the phone gets access to the internet. The number of internet users have increased worldwide as the availability has increased and the prices of internet have decreased making it accessible to a greater number of people. It is a major factor behind the sector’s growth. Although the industry is growing at a faster rate but there are multiple problems that are restraining its growth. There is a growing number of privacy and security related issues which are preventing people to shift to wi-fi phones. These potential customers can be converted if their apprehensions are removed. The organizations around the world are coming up with stronger and robust systems to protect data thefts.

COVID-19 Impact:

COVID-19 impacted the Wi-Fi phones market greatly and the industry. To contain the spread of the virus various countries around the went under a lockdown. Due to this supply chain was disrupted around the world which made the availability of raw material such as semi-conductors difficult for the production of phones. That indirectly reduced the supply of smartphones creating a mismatch in the supply and demand which lead to huge losses in the industry. Wi-Fi phones market was picked by the increased internet usage during the pandemic and e-commerce penetration increased significantly. During the pandemic people were apprehensive to get out of their homes to practice social distancing. This led to the increased time duration on the various e-commerce sites and people started ordering online for often. The electronic devices such as Wi-Fi phones also picked up market during this time and it helped the industry to regain its value. Some mobile manufacturing companies such as Samsung made unprecedented profits in the past year. Their success can be attributed to their robust supply chain and effective strategy during difficult times. Since the lockdowns have been lifted, the industry has returned to normalcy. There has been steady growth and the supply is able to meet the demand. Although, the companies have now strategically prepared new ways to save itself from future force majeure events such as COVID-19. The companies are now looking to diversify their vendors to cushion themselves from supply chain and other semi-conductor availability issues.

MARKET DRIVERS

An increase in consumer disposable income and living standards is driving growth for the Wi-Fi phones market.

The increase in the affordability of mobile phones has been a key driving factor for its growth. The disposable income of consumers has been increasing year by year, giving them greater purchasing power. Alongside, the living standards of people are also improving. They’re shifting from basic products to trendy and tech related products such as smart watches. This has been a major market driver for the growth of the industry.

Increase in demand for Wi-Fi enabled phones is driving growth in the Wi-Fi Phones Market

There has been a constant increase in the demand for the Wi-Fi phones which is helping the industry grow. This growth has been possible due to increase internet penetration worldwide. People have become dependent on wi-fi phones to conduct everyday tasks. During the pandemic schools also went into lockdowns and children were not able to go to schools. Wi-Fi phones became the source of education during that period and beyond. This is a major factor which is driving the growth in the Wi-Fi phones market.

MARKET RESTRAINTS

Increasing privacy concerns and data theft are restraining the growth in the Wi-Fi Phones Market

Wi-Fi phones market runs on cutting edge technology in which the operations are highly technical and complex. Unfortunately, the market suffers from a low number of highly skilled professionals with which the industry is not able to meet the demand. It is further acting as a restraining force for the growth of the industry. As a smaller number of qualified and trained professionals are there the adoption of technology will also be lesser, affecting the industry badly. There are many security and privacy issues which are restraining the market growth

Switching to cheaper alternative options for phones is restraining the growth in the Wi-Fi Phones Market

People are shifting to cheaper alternative in terms of phones. Simpler phones with limited features have made a comeback. These phones are able to address the market which is not able to afford Wi-Fi Phones. It is giving a big competition to the Wi-Fi Phones and Wi-Fi phones can lose market share in the future if it doesn’t do something to safe itself from this situation. The cheaper alternatives for mobile phones will be able to provide basic communication and messaging services to the user with the help of a cellular network. This cellular network will provide these services based on various subscription plans it offers. These services can be easily subscribed through various payment applications such as GPay, Paytm and PhonePe. The phone payment apps usage has also increased significantly as they have made the process of paying digitally very easy. The most important driver for online payments has been the zero fee charges. These factors are mainly responsible for impeding the growth of the market.

WI-FI PHONES MARKET REPORT COVERAGE:

This research report on the global Wi-Fi Phones Market has been segmented and sub-segmented based on Operating System, Distribution Channel, and region.

segmentation – By Operating System

1. Android

2. IOS

On the basis of operating system, the mobile phones can be classified into mainly two categories, android and IOS. Android phones are the most used phones worldwide. Their operating system is opensource and freely available to the developer community. The Android was launched after the i-Phone came into the market. I-Phone was giving major competition to android in the start due to its first mover advantage in full touch screen mobile phones but android eventually caught up with it.

Wi-Fi Phones market segmentation – By Distribution channel

1. Online

2. Offline

Phone market utilized various distribution channels. These channels are supermarkets, convenience stores, e-commerce platforms and others. Mobile phones have been traditionally distributed to supermarkets and convenience stores but due to pandemic there has been a shift from offline stores to online stores. Consumers have been able to get high discounts on e-commerce platforms as they do not have fixed costs which come from installing and maintaining a physical store.

Wi-Fi Phones market segmentation – By Region

1. North America

2. Europe

3. Asia-Pacific

4. Rest of the World

5. Middle East and Africa

In terms of market value North America and Europe has the largest size. But Asia-Pacific region is growing very fast compared to other regions. The growth in the Asia-Pacific region can be attributed to efficient supply chain, cheaper labour and high number of manufacturing plants. In India, the wi-fi phone market has seen a remarkable growth after the Jio hit the market with their free 4G internet. This also pushed the major players to offer similar pricing plans with higher data packages.

Wi-Fi Phones market segmentation – By Company

1. Cisco

2. Ericsson

3. Extreme Networks

4. Huawei

5. Juniper Networks

6. Panasonic

7. Fortinet

8. NETGEAR

9. Aruba

10. Alcatel-Lucent Enterprise

11. D-Link

12. Broadcom

13. Airtel

14. Orange Business Services

The major companies involved in the manufacturing of the phones are Samsung, Apple, Sony, Xiaomi etc. These companies are majorly android companies which are emerging from South East Asia. The improvement in the production capacity and supply chain has helped the industry to grow. The companies have also been putting huge amount of capital into their research and development which is helping these companies to come with new innovative products such as flip and fold phone, recently launched by Samsung Electronics.

NOTABLE HAPPENINGS IN THE WI-FI PHONES MARKET IN THE RECENT PAST:

• In September 2020, Ericsson improved its capabilities on the 5G model by creating new avenues for revenue. The company is looking to target the market with their 5G devices

• In February 2020, Panasonic partnered with Tata’s group called NELCO to empower them with the in-flight wi-fi service. This service will help the organization provide value addition services to its passengers in terms of high-speed internet. The unavailability of internet services makes travelling difficult for passengers.