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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 market is experiencing significant growth, driven by the increasing adoption of smartphones and the shift towards digital society. With mobile internet usage on the rise, OTT platform subscriptions and social media have become integral parts of consumers' daily lives. Smartphone sales are surging, particularly from e-commerce platforms, as more individuals seek affordable options. However, concerns regarding security and privacy with smartphone usage continue to persist. In addition, the trend towards m-Commerce and entertainment is fueling market growth, as consumers turn to their mobile devices for shopping and entertainment. Internet penetration is expanding, particularly in developing regions, making low-priced smartphones increasingly popular. Smartphone companies are responding to this demand by introducing affordable models with advanced features. Overall, the market is poised for continued growth, as it becomes an essential tool for communication, networking, and commerce in our increasingly digital world.
The smartphone market continues to thrive, driven by surging demand for mobile handsets with advanced features. Internet-based facilities such as social media subscriptions, e-commerce, and m-commerce have fueled this growth. Operating systems like iOS, Android, and Windows Phone dominate the market. The integration of 5G technology, AI, and chipmakers in smartphones is revolutionizing mobile communication. Telecom infrastructure development and 5G applications are paving the way for the rollout of 5G devices. Handset design innovation, networking capabilities, and affordability are key trends in the smartphones market. Budget-centric smartphones catering to mobile phone users' needs are gaining popularity. The entertainment industry's integration into smartphones is another significant factor driving growth. Networking and mobile communication have become essential aspects of modern life, making smartphones an indispensable part of it.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline segment is estimated to witness significant growth during the forecast period. The market has witnessed significant growth, driven by the widespread adoption of smartphones and the integration of semiconductor components. This growth is evident in both online and offline distribution channels. While e-commerce platforms facilitate m-commerce and digital information exchange, offline distribution channels provide a more personalized shopping experience. These channels include independent retailers, multi-brand stores, and exclusive brand outlets. In contrast to online sales, offline distribution caters to consumers who prefer a tactile interaction before making a purchase.
Further, in the US, approximately two-thirds of mobile phone buyers prefer offline channels, particularly those aged 55 and above. The Indian government's Production-linked Incentive (PLI) scheme further boosts the production and sales of consumer electronics, including mobile phones, through offline distribution channels. The Internet of Things (IoT) also plays a role in the market, as smartphones serve as the primary interface for IoT devices. Overall, offline distribution channels maintain their relevance in the market due to the importance of human-system interaction and the preferences of certain consumer demographics.
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The offline segment accounted for USD 361.55 billion in 2018 and showed a gradual increase during the forecast period.
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.
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The market in the Asia-Pacific (APAC) region has experienced substantial growth over the past few years, with China, Japan, India, South Korea, and Indonesia being the primary contributors to the market's revenue. The expansion of urban populations and the subsequent increase in disposable income have fueled the demand for smartphones in the region. Additionally, the development of telecom infrastructure and the availability of budget-friendly smartphones have further driven the market's growth. Semiconductor components play a crucial role in the production of smartphones, and the APAC region is home to several leading semiconductor manufacturers. Established global mobile phone brands have set up manufacturing facilities in countries such as China, Taiwan, South Korea, Japan, and India to tap into the region's vast consumer base. The growth of the smartphone market in APAC is also driving the adoption of digital information and e-commerce, with m-commerce transactions becoming increasingly common.
Furthermore, the Internet of Things (IoT) is gaining traction in the region, with smartphones serving as the primary interface for IoT devices. The Indian and Indonesian governments have introduced Production-linked Incentive (PLI) schemes to attract global manufacturers to set up production facilities in their countries. This move is expected to boost the production of consumer electronics, including smartphones, in the region. Overall, the APAC market is poised for continued growth, driven by factors such as increasing disposable income, telecom infrastructure development, and government initiatives. The market's growth is also expected to fuel the adoption of digital information, e-commerce, and IoT, making it an exciting space for businesses and investors alike.
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.
Growing adoption of smartphones is the key driver of the market. The global smartphone market has witnessed substantial growth due to the escalating demand for mobile handsets, particularly in countries like China, India, the US, and Indonesia. This trend can be attributed to the rising disposable incomes and expanding Internet penetration in these regions. companies have responded to this demand by introducing an array of offerings, including the recent launch of Xiaomi Corp.'s Xiaomi 14 Ultra series in January 2024. The smartphone industry continues to evolve, with advancements in technology such as 5G and Artificial Intelligence (AI) becoming increasingly prevalent. Internet-based facilities, including social media, streaming services, and e-commerce, have further fueled the demand for smartphones. Telecom infrastructure improvements and the availability of various operating systems, such as iOS, Android, and Windows Phone, provide consumers with diverse choices.
Increasing mobile phone sales from e-commerce platforms is the upcoming trend in the market. The smartphone market has experienced a notable rise in online sales due to factors such as convenience, diverse offerings, and competitive pricing. According to recent studies, online smartphone sales accounted for approximately 45% of the total sales in India as of 2020. Major e-commerce platforms, including Amazon, have facilitated this trend by offering a wide range of mobile handsets from various brands. The pandemic has further accelerated this growth, particularly in the mid-range segment. Leading companies like Xiaomi Communications Co. Ltd. Have capitalized on this trend by launching their products exclusively on e-commerce platforms. Additionally, the integration of advanced technologies such as 5G, Artificial Intelligence (AI), and Internet-based facilities has added to the appeal of online smartphone purchases.
Concerns associated with security and privacy with smart phone usage is a key challenge affecting the market growth. The smartphone market continues to experience significant demand, with mobile handsets becoming increasingly integrated with Internet-based facilities such as AI and 5G technology. Operating systems like iOS, Android, and Windows Phone dominate the market, with Android holding the largest market share. Telecom infrastructure and technological advancements, including 5G and AI, are driving the growth of the mobile phone industry. However, the convenience and connectivity offered by smartphones come with potential risks.
Further, unsecured Wi-Fi, network spoofing, phishing attacks, spyware, broken cryptography, and improper session handling are among the risks. Mobile phone applications, in particular, can unintentionally leak user data, as users grant them broad permissions without thoroughly checking privacy policies. For instance, a report published by the Federal Trade Commission (FTC) in 2019 revealed that over 1000 mobile applications out of the 88,000 studied collected user information, such as geolocation data and phone identifiers, without proper authorization. It is essential for consumers to be aware of these risks and take necessary precautions to protect their privacy and security.
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 includes detailed analyses of the competitive landscape of the market and information about key 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 smartphone market is experiencing significant growth, driven by increasing smartphone demand and the availability of internet-based facilities on mobile handsets. The market is segmented into operating systems such as iOS, Android, and Windows Phone. The adoption of 5G technology, AI, and IoT is revolutionizing the smartphone industry, leading to the production of 5G devices and the development of 5G test sites. The semiconductor components industry is also playing a crucial role in the production of smartphones, with chipmakers focusing on manufacturing AI chips for smartphones. The smartphones market is also influenced by telecom infrastructure development and the digital information society.
Moreover, e-commerce and m-commerce have become integral parts of consumer electronics trade activities, leading to an increase in smartphone usage for online shopping and entertainment. The integration of AR technology, OTT platform subscriptions, and social media subscriptions further enhances the user experience. The market is also witnessing the emergence of budget-centric smartphones, mid-range smartphones, and the deployment of 5G services to cater to the needs of mobile phone users. The Indian government's Digital India program and production-linked incentives (PLI) are boosting the electronics manufacturing sector and mobile phone production. The semiconductor shortage is, however, posing a challenge to smartphone manufacturers.
Further, the smartphones market is also witnessing the development of smartphone manufacturing and handset design, with a focus on 5G applications, security architecture, and IoT applications. The market is expected to continue its growth trajectory, with the increasing popularity of low-priced smartphones and the integration of AI and 4G LTE technology. The economic development and networking capabilities of smartphones are also driving their adoption, with mobile communication becoming an essential part of our digital society. Additionally, the market is witnessing the emergence of tablets, laptops, and gaming consoles as alternatives to smartphones for consumption analysis.
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, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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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