5g smartphone market

Smartphone is a mobile phone with advance features and functionality beyond traditional functionalities such as sending text messages and making calls. The fifth generation smartphones allow users to access high speed network and enhanced experience in terms of transferring data. Moreover, high bandwidth and low latency are provided by 5G smartphones that can improve user experience in terms of online video streaming and seamless video calling, virtual and augmented reality gaming among others. The availability of 5G smartphones with low power consumption is expected to drive market growth during the forecast period. Furthermore, increasing disposable income, adoption of IoT connected devices are some of the factors that are expected to drive the market growth during forecast period.

The global 5G smartphone market is expected to witness significant growth during the forecast period (2020–2027) due to the increasing adoption of IoT in 5G smartphones. According to Coherent Market Insights, in China, the penetration of smartphones increased from 676.5 million in 2017 to 782.3 million in 2020. IoT technologies connect a large number of devices such as machines, office equipment, smart home devices, household appliances, and others through internet. These factors are expected to drive demand for 5G smartphones to transfer a large amounts of data and ensure faster and more efficient operations. Nowadays, most of the companies are adopting IoT devices for better data exchanges within manufacturers, operators, and connected devices. The IoT devices can provide real-time monitoring to the workplace about inventories and customers.  The adoption of IoT in organizations can support businesses to manage risk efficiently.

The major factor restraining growth of the global 5G smartphone market is high operational and infrastructure cost. Installation and maintenance cost of 5G network is high and as a result 5G networks plan are very costly. Such factors are expected to hinder growth of the 5G smartphone market during the forecast period.

5G Smartphone Market - Impact of Coronavirus (Covid-19) Pandemic

Due to COVID-19 pandemic, several industries have witnessed significant shift in their business. There has also been a significant impact on the growth of 5G smartphone market as manufacturing operations are temporarily suspended across many countries to contain the coronavirus. There is also a shortage of 5G chipsets in the market due to disruption in production. Many manufacturing companies such as Samsung, Xiaomi, OPPO and LG Display have suspended their manufacturing operations in China, India, South Korea and in European countries. For instance, in May 2020, OPPO Company shut down its operations in Noida, India. Additionally, demand for 5G smartphone devices has decreased due to lockdown imposed in several countries.

Asia Pacific is expected to hold dominant position in the global 5G smartphone market during the forecast period.

Statistics:

Asia Pacific held dominant position in the global 5G smartphone market in 2019, accounting for 39.2% share in terms of value, followed by North America, Europe and rest of the world.

Figure 1: Global 5G Smartphone Market Share (%), By Region, 2019

Asia Pacific held dominant position in the global 5G smartphone market in 2019 and is projected to retain its dominance throughout the forecast period owing to presence of key players in the region such as Samsung, Huawei Technologies Co., Ltd., LG Electronics, OPPO Mobile Communication Co., Ltd., Xiaomi, and BBK Electronics Corporation. In April 2020, Samsung launched new Galaxy A51 and Galaxy 71 5G smartphones with features such as Infinity-O display, 5G connectivity, long-lasting battery, and quad camera. This is attributed to the growing smartphone penetration in the region and increasing usage of internet-connected devices. According to Coherent Market Insights, in China, the penetration of smartphones increased from 41.3% of population in 2016 to 61.2% of population in 2020.  Moreover, increasing investments by telecom operators such as KT Corporation, NTT Docomo, China Telecom, Reliance Jio, and China Mobile are focusing on deploying 5G network infrastructure, which is expected to drive market growth during the forecast period.

North America is expected to exhibit significant growth during the forecast period owing to the rising disposable income and urbanization in the region. The rising demand for new technology premium 5G smartphones and high adoption of 5G network generates the demand for high speed data transfer. For instance according to Coherent Market Insight’s report, the number of smart phone users in the U.S. increased from 209.5 million in 2016 to 273.3 million in 2020.

Based on operating system, the android segment is expected to drive the market growth during the forecast period

Among operating systems, the android segment is expected to hold a dominant position in the global 5G smartphone market during the forecast period due to affordable cost, ease of use, long-lasting battery, and other advantages of android-enabled 5G smartphones. There is higher preference among consumers for these devices owing to ease of accessibility and lighter weight. Moreover, the latest android mobile devices can multitask and are equipped with sensors and fingerprint security features, which provide a competitive edge over other operating systems. Android 5G smartphones also come with various free applications such as Whatsapp, Netflix, and others.

Figure 2: Global 5G Smartphone Market Value (US$ Bn) Analysis and Forecast, 2017 - 2027

The global 5G smartphone market was valued at US$ 13.4 Bn in 2019 and is expected to reach US$ 4,032.3 Bn by 2027 at a CAGR of 124.9% between 2020 and 2027.

Major players operating in the global 5G smartphone market are Huawei Technologies Co., Ltd., SAMSUNG, Apple Inc., BBK Electronics Corporation, Motorola Mobility LLC, LG Electronics, OPPO Mobile Communication Co., Ltd., Xiaomi, Nokia, ASUSTeK Computer Inc., Sony Corporation, Micromax, HTC Corporation, and Lenevo.