Smartphones Market

Smartphones Market Overview 2023:

The global smartphones market was valued at USD 519 billion in the year 2022 and is estimated to register a CAGR of 7% during the forecast period. The increasing use of social media platforms, such as Facebook, Twitter, Instagram, and others, coupled with government support for telecom infrastructure development, budget-centric product launches, and the growing adoption of 5G technology and artificial intelligence (AI) are some of the key factors expected to drive global market growth between 2023 and 2032.

Smartphones have become an integral part of the modern world, offering a wide range of functionalities that cater to various needs. It has fully revolutionized the way people communicate, manage their daily lives, work and entertain themselves. A smartphone is a cellular telephone that facilitates advanced access to internet-based services and other digital functions. These devices possess all the standard features such as calling, messaging, and emailing, along with diverse multimedia options, including smart applications, music, cameras, and gaming.

Modern smartphones are capable of handling different wireless communication protocols, such as Wi-Fi, Bluetooth, and satellite navigation, and run on various operating systems such as iOS, Android, Windows, and others that support a wide range of applications developed by third-party creators. These devices predominantly use touchscreen displays for user interaction and are equipped with a variety of sensors accelerometers, proximity sensors, and gyroscopes enabling functionalities such as gesture controls, screen auto-rotations, and augmented reality experiences. Many smartphones have built-in GPS capabilities, that allow users to access maps, get directions, and use location-based services. This has revolutionized navigation and location-based applications.

Smartphones are also used to connect third-party wearable devices and digital wallets. To secure the data and enhance device security, smartphones incorporate various security features like fingerprint sensors, encryption, and facial recognition. However, many of these smartphones are expensive. This is expected to limit the adoption of certain types of smartphones among developing economies with budget constraints.

Graphical Overview:

Key Takeaways:

Advancement in Technology:

The introduction of 4G LTE technology followed by the arrival of 5G services is driving the sales revenue of smartphones. As a result, several smartphone manufacturers have shifted their focus toward launching 5G-enabled smartphones to cater to the increasing demand for both 4G and 5G-enabled devices among tech-savvy consumers. The growing demand for 5G smartphones, in turn, will further enhance sales volume.

Market Saturation in North America and Western Europe:

In mature markets like North America and Western Europe, smartphone penetration is high, leading to longer replacement cycles and slower growth rates. This is expected to affect the overall market growth during the forecast period. In addition, issues such as component shortages, logistic challenges, and trade tensions can affect product availability and pricing.

Market Opportunities:

The increasing penetration of the internet is a significant opportunity for businesses operating in the smartphone market. Individuals are gaining access to the internet at a higher rate; thus, smartphones are emerging as crucial tools for online connectivity and activities. From social media engagement to e-commerce, content streaming, and communication apps, smartphones provide a convenient way to a wide range of online services. This shift towards mobile connectivity has profound implications for businesses seeking to engage with customers and create value in the digital age.

Operating System Outlook:

The Android operating system (OS) segment is expected to register substantial revenue CAGR over the forecast period owing to increasing availability and demand for cost-effective Android-based mobile phones. The Android OS offers a higher degree of flexibility, personalization, and customization options as compared to iOS. The provision of free app selection, Wi-Fi hotspots, calendar management, and voice assistants, are contributing to the rise in demand for Android-based smartphones.

Based on applications, the global market is segmented into photography, gaming, business, personal, and others. Among these, the personal segment is expected to register rapid revenue CAGR over the forecast period owing to rapid urbanization, rising importance of smartphones in daily routines, and high usage of phones for social media networking, education, learning, browsing, streaming, and gaming among others.

Distribution Channel Outlook:

The global smartphone market is segmented into retailers, original equipment manufacturers (OEMs), stores, and e-commerce based on distribution channels. Among these segments, e-commerce segment is expected to account for a significantly larger revenue share between 2023 and 2032. This growth can be driven by factors such as rapidly increasing online sales, rising availability of various types of smartphones and augmented online-buying facilities on different e-commerce platforms, and high preference for online shopping due to enhanced convenience, price and product comparison, seasonal offers and door-step delivery.

End Use Outlook:

Based on end use, the global market is segmented into youth/teens, business professionals, senior citizens, and others. Among these, the youth or Gen Z segment is expected to account for largest revenue share during the forecast period owing to high usage of different types of smartphones for various purposes, including education, entertainment, communication, social networking and self-expression, rising penetration of internet, high content consumption and technological affinity among Gen Zers.

Regional Outlook:

Asia Pacific market has experienced substantial growth in recent years and is expected to continue expanding during the forecast period. This growth can be attributed to various factors including rapid adoption of advanced smartphones with better cameras, faster processors, and improved battery life, high penetration of the internet, and rising availability of affordable smartphones. In addition, rising use of social media, growing disposable income, and increasing investments in R&D activities are other factors expected to drive Asia Pacific market growth during the forecast period.

Report Coverage:

Competitive Landscape:

The global smartphones market is extremely competitive, comprising several regional and global level key players. Leading key players are focused on adopting various strategic alliances like mergers and acquisitions, partnerships, joint ventures, collaborations, and product launches to maintain their global position and enhance their product offerings. They are also focused on innovation, and scalability, adapting to evolving technology trends and consumer needs.

Some Leading Companies Listed in the Report:

• Samsung
• Apple
• Nokia
• Google
• Sony
• Huawei
• Xiaomi
• Oppo
• Vivo
• LG
• OnePlus
• Asus
• HTC
• Motorola
  
  

Smartphone Industry Recent Developments:

• In Dec 2023, Vivo announced the launch of the Vivo X100 series in India on 4 January 2024. This series includes a vanilla model and a pro model with a 6.78-inch full HD+ LTPO AMOLED display.
• In Oct 2023, Apple launched its new iPhone 15 Series which includes iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone Pro Max. This series is powered by Apple A17 Pro, the world's first 3nm class silicon.
• In May 2023, Sony Electronics, Inc. launched Xperia 1 V, which was the first flagship smartphone, equipped with a newly developed stacked CMOS image sensor with a 2-layer Transistor Pixel.
  
  

The global smartphone market has been segmented based on operating system, application, distribution channel, end-use, and region:

By Operating System:

• Android
• iOS
• Others
  
  

By Application:

• Photography
• Gaming
• Business
• Personal
• Others
  
  

By Distribution Channel:

• Retailers
• E-Commerce
• OEMs Stores
  
  

By End-Uses:

• Youth/Teens
• Business Professionals
• Senior Citizens
• Others
  
  

By Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
  • Nordic Countries
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Southeast Asia
  • India
  • Australia
  • Rest of Asia
• Latin America
  • Mexico
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • Turkey
  • Saudi Arabia
  • UAE
  • Rest of MEA

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