The “Global 4G (LTE) Devices Market, by Device Type (Smartphones and Tablets), by Pricing Range (Low, Medium, and Premium), by Distribution Channel (Multi-brand Store is further sub-segmented into (Organized and Independent), Single Brand Store, and Online), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa) - Global Forecast to 2027”, is expected to grow at a CAGR of 6.7% during the forecasted period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Mobile devices are portable, compact, and lightweight electronic devices that may or may not feature touch screen display with optional mini-keyboard. A smartphone is a type of mobile phone with advanced features such high-resolution touchscreen display, an operating system with the ability to run software applications, and web browsing capabilities. Furthermore, a tablet is also a type of mobile phone, which is larger than smartphone through smaller than laptop or computer. Generally, screen size of tablets is around 8-10 inches. These devices are available at single brand store, multi-brand store, and online platforms.
The global 4G (LTE) devices market was valued at US$ 429.7 Bn in 2018 and is expected to grow at a CAGR of 6.7% during the forecasted period (2019-2027)
Growing consumption of HD video content worldwide is expected to drive growth of the global 4G (LTE) devices market over the forecast period
The use of smartphones has evolved over the years from accessing news and social media to streaming high quality video. Increasing data traffic coming from HD video has led to deployment of LTE networks, in order to cater to demand for improved user experience and faster network. These factors are expected to boost the global 4G (LTE) devices market growth over the forecast period. For instance, in January 2016, VoD-4G (LTE) was launched across the African market (North Africa and South Africa), including 24 countries, owing to growing demand for deployment of 4G (LTE) network in the regions.
Increasing demand for low-budget smartphones in emerging economies is expected to offer significant growth opportunity
Consumers from emerging economies are preferring low-budget 4G-LTE smartphones that feature advanced applications. Therefore, key manufacturers in the market are offering low-cost 4G LTE smartphones, in order to expand their consumer base. For instance, in April 2016, Philcomm Communication Company Ltd. introduced its cheapest smartphone ‘Philcomm Clue 360’ in the India market and was priced at US$ 60. Furthermore, according to Global System for Mobile Communications Association (GSMA)’s consumer survey in countries such Brazil, Mexico, Kenya, China, and India, consumers often prioritize data reception over processor speed, camera resolution, memory capacity, and screen size. This, in turn, is expected to pose lucrative growth opportunity for market players.
Regulatory uncertainties in certain countries are expected to hinder the global 4G (LTE) devices market over the forecast period
Certain countries around the world are imposing extra tax on imported smartphones and other electronic gadgets. This scenario is quite prevalent in price-sensitive economies, which in turn, is expected to restrain the global 4G (LTE) devices market growth over the forecast period. For instance, in July 2015, the Indonesian Government mandated the use of locally manufactured hardware and components for production of smartphones. It also imposed an additional tax of 20% on imported mobile phones. The consumers were needed to pay more for imported brands of 4G-enabled smartphones. These factors are expected to hamper the market growth in the near future.
Evolving infrastructure from coverage to capacity expansion
Previously, network service providers were focused on expansion of geographical network coverage. However, advent of high-speed 4G LTE network has compelled service providers to shift their focus from geographical coverage to expansion of network capacity. For instance, in February 2016, Qualcomm Technologies collaborated with Nokia and T-Mobile to launch 4G (LTE)-Cellspot, in order to offer high-speed internet connections for personal as well as home use.
High adoption of smartphone in the region
Smartphone adoption has been significantly high in Asia Pacific countries in the recent past. Japan and South Korea has shown relatively high penetration rates of 4G (LTE) devices as compared to countries such as India, China, Indonesia, and Malaysia. However, this gap is reducing rampantly, owing to advent of cost-effective 4G smartphones and tablets by local manufacturers such as OnePlus, Huawei, Gionee, and Xiaomi. For instance, in October 2016, Nokia collaborated with Bharti Airtel to deploy 4G across nine circles in India, in order to meet the increased capacity demands. Furthermore, Reliance Jio Infocomm has invested over US$ 23.9 billion in 4G infrastructure, in order to secure license for airwaves in both 2300 MHz and 1800 MHz spectrum band.
Middle East & Africa
The Telecommunications Regulatory Commission (TRC) announced in April 2014 that Zain Group – mobile telecommunication company, secured 4G License in Jordan and paid an installment of USD 76.75 million, as well as a USD 270 million license fee for 4G (LTE)spectrum and additional 3G frequencies. Zain has commercially launched its 4G (LTE) services in Feb 2015. Following Zain, Orange Jordan acquired the 4G license for (10+10) MHz frequencies on the1800 MHz spectrum at a cost of USD 100 million, and started offering its services end of May, 2015. Recently Umniah has acquired the 4G license. The TRC floated a bid in June 2013 offering new spectrums to allow the entry of a fourth mobile operator and a new provider for Fixed Broadband Wireless Access (FBWA); a fourth mobile operator has not been selected. The spectrums include; 800 MHz, 1800 MHz, 2100 MHz, 2300 MHz, and 2600 MHz.
Key players operating in the global 4G (LTE) devices market are Apple Inc., ASUSTeK Computer Inc., Huawei Technologies Co., Ltd., Lenovo Group, LG Electronics, Panasonic Corporation, Samsung Electronics Co., Ltd., Xiaomi Inc., and ZTE Corporation