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The mobile phone market size is forecast to increase by USD 188.78 billion, at a CAGR of 6.35% between 2023 and 2028. The growth of the market depends on several factors such as the growing adoption of smartphones, the increasing popularity of multiple-lens camera modules, and the increasing investments towards 5G technology. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing adoption of smartphones is the key factor driving the market. There has been a significant increase in the use of smartphones by consumers globally. Countries such as China, India, the US, and Indonesia account for the largest share of the global demand for smartphones market. Increasing disposable incomes of consumers in these countries, coupled with increased Internet penetration in rural areas, have contributed to the growing demand. Consumers can purchase such devices from a wide range of offerings provided by market players.
Moreover, due to the increased demand for smartphones, companies have launched multiple products in recent years. For instance, in January 2024, Xiaomi Corp. launched its smartphone product line of Xiaomi 14 Ultra series globally. Furthermore, the increased demand for smartphones can also be attributed to factors such as a reduction in average sale prices (ASPs), increased consumer transition from feature phones to smartphones, and availability of 5G models, thereby driving market growth during the forecast period.
Integration of artificial intelligence in operating systems is the primary trend shaping the market. The goal of the AI integration trend is to personalize the user experience, make everyday tasks easier, and enhance the overall device performance. Leading operating systems such as iOS and Android have developed AI virtual assistants, including Siri and Google Assistant that understand voice commands and respond to user requests. This personalizes interactions, allowing for hands-free actions and contextual assistance.
Moreover, artificial intelligence (AI) enhances smartphone camera technology. Features such as object detection, scene optimization, and AI-powered real-time filters enhance the quality of photos and videos. Google Pixel phones by Alphabet Inc and Apple Inc's iPhone are prime examples of AI integration. Thus, such factors will thereby drive the growth of the market trends during the forecast period.
Ongoing trade wars affecting sales is a major challenge that affects market growth. Market players are investing a significant amount of money in international shipments to capture the global market. For instance, the US and China are closely linked through the supply chain for electronic products. The imposition of tariffs by the Federal Government of the US and the Government of China has negatively impacted the supply of smartphones in both countries.
Furthermore, APAC is one of the major suppliers of the market, both in terms of manufacturing and sales. Owing to the increasing number of government regulations placed by the US and China on the movement of electronic commodities, sales volumes were affected globally, where smartphone market players such as Huawei Technologies Co. Ltd. lost their market shares. Therefore, trade wars and the uncertainty associated with the emergence of government regulations will limit the expansion of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The offline segment is estimated to witness significant growth during the forecast period. The offline distribution channels include independent retailers, multi-brand stores, and exclusive brand outlets. The offline segment of the market has its own distinctive features and benefits. One of the biggest differences between online and offline distribution is the level of personalization. This personalization is especially important for consumers who prefer a physical touch before making a purchase. In the US around two customers out of three prefer to buy mobile phones from physical stores.
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The offline segment was the largest segment and was valued at USD 361.55 billion in 2018. Further, according to the All India Mobile Retailers Association (AIMRA), customers prefer offline stores when they are buying phones costing above USD 400 as they want to check and scrutinize products very carefully. Smartphones that are sold offline are mainly made up of high-end products, and customers tend to shop for cheaper phones on Amazon and other online stores. Various leading market players, such as Apple Inc., Xiaomi Communications Co. Ltd., and Samsung Electronics Co. Ltd., have set up numerous physical stores across the globe. As of 2023, Apple Inc. has 529 retail worldwide. Thus, such factors under the offline segment will drive the market during the forecast period.
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APAC is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Over the past few years, the market in APAC has grown significantly. China, Japan, India, South Korea, and Indonesia are the major revenue-generating countries in the region. The significant development of the urban population in the region has led to a rise in the disposable income of people, which has subsequently increased the purchasing power of smartphone customers.
Additionally, the growth of the smartphone market in the region is driven by various other factors as well, including the development of telecom infrastructure and the emergence of budget-centric smartphones. Established global mobile phone manufacturers have well-established manufacturing facilities in China, Taiwan, South Korea, Japan, and India. The key market players are Apple Inc., Samsung Electronics Co. Ltd., Sony Group Corp., Xiaomi Communications Co. Ltd., and Micromax Informatics Ltd. Hence, such factors are expected to drive market growth in this region during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market witnesses rapid advancements with the emergence of 5G cellphones, IoT (Internet of Things) applications, and innovative technologies like Super TimeFreq Folding. China Telecom and Android Operating System dominate, while Google Play Stores cater to app needs. Companies like Airnow PLC and Sony Group corporation compete with flagship models like the Find X5 Series and Xperia PRO-I product. Internet of things (IoT) applications integrate seamlessly, enhancing functionality. Despite the decline of Windows Phone, Vivo leads in market share. Organizations like Consumer Technology Association (CTA) and World Health Organization monitor trends and health impacts. International Data Corporation (IDC) tracks sales, highlighting the importance of semiconductor components amid China-U.S. trade activities. The Global System for Mobile Communications (GSMA) forecasts continued growth, emphasizing the pivotal role of mobile technology in today's interconnected world.
Mobile Phone Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.35% |
Market growth 2024-2028 |
USD 188.78 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.4 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 54% |
Key countries |
US, China, India, Germany, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acer Inc., Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., BBK Electronics Corp. Ltd., BlackBerry Ltd., Fujitsu Ltd., HTC Corp., Huawei Technologies Co. Ltd., Lava International Ltd., Lenovo Group Ltd., Micromax Informatics Ltd., Nokia Corp., Panasonic Holdings Corp., Reliance Industries Ltd., Sony Group Corp., TCL Electronics Holdings Ltd., Xiaomi Communications Co. Ltd., ZTE Corp., Kyocera Corp., and Samsung Electronics Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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