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The smartphone market is estimated to increase by USD 77.05 billion, at a CAGR of 3.43% between 2023 and 2028. AI in smartphones is rapidly driving market growth. The market's growth hinges on several key factors. Firstly, the increasing adoption of AI in smartphones enhances user experiences with advanced functionalities like voice assistants and intelligent camera features. Secondly, emerging countries are witnessing a rise in the adoption of premium smartphones, driven by increasing disposable incomes and demand for high-end features. Lastly, the adoption of bezel-less screens is transforming smartphone designs, offering immersive displays and maximizing screen-to-body ratios. These trends collectively shape consumer preferences and drive innovation among manufacturers, influencing the competitive landscape of the global smartphone market. As technology continues to evolve, these factors will play a crucial role in defining market dynamics and consumer choices in the coming years.
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The market share growth by the Android segment will be significant during the forecast period. The Android operating system (OS) is a commonly used mobile OS globally. It is offered by Alphabet Inc. (Google). There are more than 2.5 million apps in the Google Play Store, where users can download various apps as per their requirements. Various features of the Android OS include smart reply for all messaging apps, focus mode options, Wi-Fi sharing via QR codes and Google Assistant.
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The Android segment was the largest and was valued at USD 199.72 billion in 2018. The growing popularity of the Android OS, fueled by its diverse features and widespread adoption by global smartphone vendors like Samsung, Huawei, Xiaomi, and BBK electronics, is driving the launch of new Android-based products. For instance, Xiaomi introduced the Xiaomi 13 and 13 Pro smartphones running on Android OS 13, while Realme launched the Realme 10 Pro smartphone Coco-cola edition and OnePlus unveiled the OnePlus 11 and 11R with advanced features. These developments underscore the Android segment's significant role in propelling growth in the global smartphone market.
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APAC is estimated to contribute 51% 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. The market in APAC has grown significantly over the past few years. China, Japan, India, South Korea, and Indonesia are the major revenue-generating countries in the region. Rapid urbanization in the region has led to a rise in disposable income, significantly boosting the purchasing power of customers. The growth of the smartphone market is fueled by various factors, including the development of robust telecom infrastructure and the increasing availability of budget-centric smartphones. These trends have facilitated widespread internet access and enhanced digital connectivity, promoting the adoption of online bus ticketing services directly through mobile devices.
The market is advancing rapidly with improved telecom infrastructure and the availability of affordable handsets, catering to a growing number of mobile phone users worldwide. The evolution towards 5G gadgets and the development of 5G chips are revolutionizing cellular phone design and enhancing both 4G and 5G network technologies. Smartphones, including smart and feature phones, leverage advanced hardware and software capabilities to offer internet-based facilities, digital functions, and enhanced user experiences. Chipmakers play a crucial role in powering these devices with AI capabilities, enabling functionalities such as web browsing, voice and video calls, music streaming, video watching, and gaming. Governmental assistance and budget-centric product launches are driving market growth, while third-party originators contribute to diverse smartphone offerings. As technology continues to innovate, the smartphone market remains dynamic, meeting consumer demands for connectivity, entertainment, and productivity on the go. 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 AI in smartphones is notably driving the market growth. The smartphone market is witnessing significant advancements, driven by the integration of advanced technologies and improved telecom infrastructure. Affordable handsets catering to a vast base of mobile phone users are fueling the demand for 5G gadgets. Chipmakers are at the forefront of this revolution, developing 5G chips that offer high-speed data connectivity and integrated IoT applications. Laboratories and engineering institutes are collaborating to push the boundaries of next-generation products, including 5G applications, AR technology, and over-the-top platform subscriptions. Major vendors, such as Apple, Samsung, and Huawei, are investing heavily in R&D to introduce premium segment handsets with enhanced functionality. These devices feature user authentication, emotion recognition, and device management, powered by AI-based chips.
Further, operating systems like Android and iOS are being continually updated to support these advanced features. Application developers are also leveraging languages like C++ and Java to create in-app purchases and in-app course subscriptions. Handset design is evolving, with a focus on battery power, camera configuration, and processor capabilities. Qualcomm's Snapdragon processors are leading the charge, offering superior performance and power efficiency. Logistics networks are being optimized to ensure the timely delivery of these high-tech gadgets. The telecom sector is also adapting to the changing landscape, with budget documents outlining strategies to accommodate the increasing customs duties and the integration of 4G and 5G network technologies. Thus, such factors are driving the growth of the market during the forecast period.
The emergence of sensor fusion technology is the key trend in the market. In the dynamic smartphone market, advanced sensor fusion technology plays a pivotal role in enhancing user experience and functionality. With the advent of Improved Telecom Infrastructure, an increasing number of Mobile Phone Users are embracing 5G Gadgets, necessitating the need for efficient sensor integration. Chipmakers and laboratories are at the forefront of this innovation, developing 5G Chips and 4G Network Technologies that seamlessly integrate with 5G Network Technologies. Sensor fusion technology enables smartphones to combine data from various sensors, such as gyroscopes, compasses, and accelerometers, to calculate elevation, linear translation, gravity, direction, and rotation. This fusion of data results in improved Handset Design, functionality, and Operating systems, including the Android Operating System and iOS. Application developers are leveraging this technology to create innovative Social media applications, Mobile utility applications, and Lifestyle applications. The integration of In-app purchases and In-app course subscriptions relies on high-speed data connectivity and Integrated IoT applications.
Moreover, the telecom sector is experiencing a paradigm shift with the introduction of 5G applications, Budget documents for next-generation products, and the expansion of Logistics networks. AR technology and Over-the-top platform subscriptions are also gaining popularity, necessitating the need for longer battery power and advanced Camera configuration. Processor brands like Snapdragon are continually pushing the boundaries of Hardware capabilities to meet the demands of this evolving market. The Premium segment is driving the competition, with vendors focusing on delivering advanced features and sleek designs. Customs duties and regulatory compliance are essential considerations for the manufacturing and distribution of these gadgets. As the market continues to grow, the focus on chip development and sensor fusion technology will remain crucial for the success of 5G gadgets. Thus, such trends will shape the growth of the market during the forecast period.
Ongoing trade wars affecting smartphone sales is the major challenge that affects the growth of the market. The global smartphone market is experiencing substantial growth, driven by the expansion of improved telecom infrastructure and the availability of affordable handsets. With the emergence of next-generation 5G gadgets and the integration of 5G chips, mobile phone users worldwide are increasingly embracing advanced technologies. The engineering institutes, laboratories, and chipmakers are at the forefront of this development, pushing the boundaries of functionality and design. The transition from 4G to 5G network technologies has brought about significant changes in the smartphone industry. The premium segment is witnessing a shift towards handsets with high-speed data connectivity, integrated IoT applications, and advanced operating systems like Android and iOS. Application developers are creating innovative solutions for social media applications, mobile utility applications, and lifestyle applications, catering to diverse user needs.
However, the market dynamics are influenced by various factors, including customs duties and logistics networks. The US-China trade tensions have led to the imposition of tariffs and restrictions on multiple goods, including electronic components. This has increased the average selling price of smartphones and the cost of manufacturing components, such as processors like Snapdragon. Moreover, the telecom sector is investing heavily in 5G applications, AR technology, and over-the-top platform subscriptions. The demand for high-performance handsets with advanced features, such as better battery power, camera configurations, and processor capabilities, is on the rise. In-app purchases and in-app course subscriptions are becoming popular revenue streams for app developers. In conclusion, the smartphone market is undergoing a transformative phase, driven by technological advancements and evolving user preferences. Despite the challenges posed by trade tensions and tariffs, the industry is expected to continue its growth trajectory, fueled by the development of next-generation products and the expansion of connected computers and hardware capabilities. Hence, the above factors will impede the growth of the market during the forecast period
Customer Landscape
The 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 market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market 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.
Alphabet Inc. - The company offers Pixel 6A smartphone, which is designed with Gorilla Glass 3 display screen and has a 6.1-inch screen display.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market continues to innovate with improved cellular phone design and a diverse range of smart and feature phones. Laboratories and engineering institutes drive advancements in 5G applications and next-generation products, while premium segment offerings enhance handset design and functionality. Operating systems like C++, Java, and integrated IoT applications support gaming, social media, and lifestyle applications with options for in-app purchases and subscriptions. High-speed data connectivity and AI-driven technologies bolster mobile utility, multimedia functionality, and AR applications. Smartphone manufacturers address component shortages to meet rising demand for devices with advanced camera configurations, Snapdragon processors, and fast-charging capabilities. As the market evolves, smartphones integrate seamlessly with IoT devices, revolutionizing sectors like healthcare, fleet management, and infrastructure security systems. With increasing connectivity and user engagement, the smartphone market remains pivotal in shaping digital lifestyles and technological advancements globally.
In addition, the market is diverse, catering to both smart and feature phones that offer varying levels of functionality and affordability. While Windows Phone has seen declines, manufacturers continue to innovate with budget-centric product launches, integrating advanced technologies like 5G and Artificial Intelligence. Camera capability remains a crucial feature, with smartphones competing to offer enhanced image quality and innovative photography features. Mobile handsets are continuously evolving, integrating high-speed data connectivity and sophisticated hardware to meet consumer demands for multimedia and gaming. As the market expands, smartphones play a pivotal role in daily life, facilitating communication, entertainment, and productivity through a combination of hardware capabilities and mobile operating systems. The ongoing advancements in AI and connectivity are driving the evolution of smartphones, making them indispensable tools for a wide range of applications and user preferences.
Market Scope |
|
Report Coverage |
Details |
Page number |
197 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.43% |
Market Growth 2024-2028 |
USD 77.05 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.31 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
China, India, Germany, US, 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., Guangdong OPPO Mobile Telecommunications Corp. Ltd., Honor Device Co. Ltd., HTC Corp., Huawei Technologies Co. Ltd., Kyocera Corp., Lava International Ltd., Lenovo Group Ltd., LG Corp., Micromax Informatics Ltd., Nokia Corp., Samsung Electronics Co. Ltd., Shenzhen Transsion Holdings Co. Ltd, Sony Group Corp., TCL Electronics Holdings Ltd., Xiaomi Communications Co. Ltd., and ZTE Corp. |
Market dynamics |
Parent market growth analysis, Market Forecasting, 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 market forecast period. |
Customization purview |
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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 Technology
7 Market Segmentation by Price Range
8 Market Segmentation by Screen Size
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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