Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Mobile phone accessories refer to any hardware that is not included in the operation of a mobile smartphone by the manufacturer. These accessories include protective cases, USB cables, headphones, data cables, Bluetooth headsets, power banks, screen protectors, mobile chargers, etc. The mobile phone accessories market offers immense opportunities to manufacturers due to a large number of mobile device users and substantial growth in adoption of smartphones and tablets. The global mobile phone accessories market focuses on six regions namely North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
The global mobile phone accessories market was valued US$ 80,947.0 Mn in 2019 and expected to reach US 139,104.2 Mn by 2027.
Market Dynamics- Drivers
- Increasing disposable income and rising global population is expected to drive growth of the global mobile phone accessories market
Preference of common populace towards mobile accessories, especially in emerging economies has increased due to rising disposable income in the recent past. According to Coherent Market Insights’ analysis, in 2015, global disposable income increased by 3.1% as compared to 2014. Furthermore, growing population, especially in emerging regions such as MEA and Asia Pacific is expected to boost the demand for mobile phone accessories. According to the United Nations (UN), global population is expected to reach 9.6 billion by 2050, increasing from 7.2 billion in 2013. Furthermore, GDP of emerging economies is expanding significantly, which in turn, is expected to drive growth of the market during the forecast period.
- Rising penetration smartphones is expected to propel the growth over the forecast period
Smartphone proliferation across emerging economies such as Indonesia, Brazil, and China has increased substantially and continues to grow at a fast pace. This is owing to increasing internet penetration and rising popularity of social network platforms in the countries. According to Coherent Market Insights’ analysis, Smartphone shipments across the globe increased from 1.1 billion units in 2013 to 1.2 billion units in 2014. Of the overall shipments, over 45% of smartphone units were shipped to China in 2014. Moreover, rising trend of mobile shopping, e-banking, and BOYD are other factors expected to propel the global mobile phone accessories market growth over the forecast period.
APAC dominated the global mobile phone accessories market in 2019, accounting for 52.3% share in terms of value, followed by, Europe, North America, Latin America and Middle East respectively.
Figure 1: Global Mobile Phone Accessories Market Share (%), in Terms of Value, By Region, 2019
Market Dynamics- Restraints
- Rising threat of privacy is expected to hamper the global mobile phone accessories market growth during the forecast period
Privacy remains a major threat to market growth. The materials used in pirated products are of substandard level as compared to products offered by major manufacturers. However, pirated products are offered at a fraction of the price of the original products and consumers in emerging economies such as India and China are inclined more towards the former. Hence, the presence of these products is expected to hamper the market growth in the near future.
- Lack of standardization is expected to hinder the global mobile phone accessories market growth over the forecast period
There is a lack proper standardization in terms of technology and components used for the manufacturing of mobile accessories. Undefined standards in the market lead to high product and price differentiation, which in turn, is expected to hinder the global mobile phone accessories market growth over the forecast period.
- Rising demand from Asia Pacific Region can present major business growth opportunities
Mobile phone accessories have witnessed a massive demand from Asia Pacific region in the recent past, especially from countries such as Japan, South Korea, China, and Indonesia. This is owing to rising disposable incomes and greater urbanization, along with the changing lifestyles prevalent in the region. Major companies in the market are can capitalize on the opportunities and gain significant advantages in the market.
- Constant merger and acquisition activities can pose significant business opportunities
Major companies in the market are focused on merger and acquisition activities, in order to enhance the market presence. For instance, in 2014, Apple Inc. acquired Beats Music and Beats Electronics for a combined value of US$ 3 Bn. Furthermore, in 2014, Brightstar Corp. acquired the commerce and service division of SoftBank BB Corp., in order to expand its footprint in the region.
Figure 2: Global Mobile Phone Accessories Market Value (US$ Mn), 2017 - 2027
The global mobile phone accessories market was valued at US$ 80,947.0 Mn in 2019 and is forecast to reach a value of US$ 139,104.2 Mn by 2027 at a CAGR of 7.0% between 2020 and 2027.
- Launches of novel products by market players is a major trend
Key players in the market are involved in product development and launches, in order to expand their product portfolio. For instance, in 2015, CAT Phones (Caterpillar Inc.), a mobile phone manufacturer based in the U.S., introduced Cat mobile phone cases and accessories at the Mobile World Congress 2015. In 2015, Karbonn, a mobile phone manufacturer based in India, launched screen guards and portable power banks. Moreover, in 2015, StoreDot, an Israel-based company, developed a new type of battery that can be recharged in just 30 seconds.
- Increasing demand for a protective case
Protective cases are in a massive demand since they have gained popularity as a fashion accessory in countries such as China and Indonesia. Companies are focused on manufacturing trendy protective cases to cater to the growing number of fashion-conscious consumers in these regions. Sales of protective cases are being driven by increasing number of multi-brand stores as these provide easy accessibility to consumers across the globe.
Major companies involved in the global mobile phone accessories market are Panasonic Corporation, JVC Kenwood Corporation, Sennheiser Electronic GmbH & Co. KG, Energizer Holdings, Inc., Sony Corporation, Plantronics, Inc., Samsung Electronics Co., Ltd., BYD Co Ltd., Apple Inc., and Bose Corporation.
- Major companies in the market are focused on product development, in order to enhance the product portfolio. For instance, in July 2017, Energizer Holdings, Inc., a U.S.-based consumer electronics company, introduced chargers, lightning cables, type C cables, USB hub stations, and mobile utility cables in the Indian market.
- Key players in the market are involved in capacity and business expansion, in order to gain a competitive edge in the market. For instance, in January 2020, Samsung Electronics Co., Ltd announced to establish India’s first smartphone display manufacturing unit in Delhi, India.