Smartphone Market Is Expected to Witness CAGR of 7.6% During the Forecasted period (2019-2027) - Coherent Market Insights

The “Global Smartphone Market, by Operating System (Android, iOS, Windows, Blackberry operating system, and Other (Sailfish, Tizen, and Ubuntu)), by Distribution Channel (OEM, Retailer, and e-commerce), and by Geography (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, was valued at US$ 815,356.1 million in 2019, witnessing a CAGR of 7.6% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.

Overview

Smartphones are mobile phones with highly advanced features. A typical smartphone features high-resolution touch screen display, Web browsing capabilities, WiFi connectivity, and other abilities to complete sophisticated tasks. The majority of smartphone devices run on Android, iOS, BlackBerry OS, Windows OS, and others (Ubuntu, etc.). Moreover, smartphone is expected to have a more powerful CPU, more RAM, more storage space, greater connectivity options, capabilities of video calls, and larger screen than a regular feature phone. Modern smartphones are capable of high-end gaming, 4K video streaming, augmented and virtual reality videos, and GPS. High hardware such as gyroscopes is included, in order to support motion-based navigation.

The global smartphone market is estimated to account for US$ 815,356.1 Mn in terms of value and 1,794.7 Mn units in terms of volume by the end of 2019

Market Driver

Expanding e-commerce industry is expected to drive growth of the global smartphone market during the forecast period

Continuous expansion of e-commerce industry has increased preference of consumers to purchase their smartphones through these platforms. These products range from consumer products to lifestyle products, which is one of the key factors expected to fuel growth of the global smartphone market during the forecast period. For instance, in 2014, Alibaba, a China-based e-commerce company, invested US$ 25 Bn on initial public offerings (IPO).

Market Opportunity

Constantly decreasing cost of smartphones is expected to present lucrative growth opportunity in the near future

Advanced technology enables manufacturing of high-tech machinery and equipment for the manufacture of smartphones and various other electronics devices at a higher rate of production than conventional machinery and equipment. As a result, the cost of producing smartphones and various other electronics devices decreases moderately. Moreover, manufacturers can also offer these products at lower prices to consumers and end users, which results in increased demand for smartphone, etc.

Market Restraint

Increasing replacement cycle is expected to hinder the global smartphone market over the forecast period

The smartphone market has been developing around the devices themselves as well as the platforms they run on. Continuous technological innovation in the field of electronic devices such as smartphones has resulted in consumers anticipating launch of advanced devices in the market. Over the past three to four years, slowdown in technological innovations has resulted in smartphone manufacturers offering smartphones with more-or-less that same standard features. This has resulted in consumers postponing decision to purchase new smartphones and settling for the devices they already have, or until newer upgraded models are launched.

Market Trends

1. Latin America Trends

High demand for low-end smartphones

2G smartphone shipments are expected to boost between 2008 and 2020, which in turn, is expected to drive the demand for low-end smartphones in Latin America. For instance, in 2009, 2G mobile device shipments in Latin America accounted for 15% of the global shipments and reached 20% in 2015. This is despite availability of various technology upgrades – such as from 2G to 4G. Although market share of 2G smartphones in Latin America is decreasing, its share with regard to global 2G shipments is increasing. Latin America was one of the most dynamic and fast growing regions for digital advertising investment, especially in terms of smartphone Internet ad spending in 2015.

2. Eastern Europe Trends

Subsidies on high-end smartphones are a major trend in the market.

Several manufacturers in Eastern Europe offer leasing options and device upgrade programs, especially for customers eager to purchase the latest edition of smartphones. In upgrade programs, either a third-party or the manufacturer finances the device and the consumer pays for it over a stipulated period of time.

Competitive Section

Key players operating in the global smartphone market are Samsung Electronics Co., Ltd., Vivo Communication Technology Co. Ltd, Apple Inc., Lenovo Group Limited, ZTE Corporation, Huawei Technologies Co., Ltd., TCL Communication Technology Holdings Limited, and LG Electronics Inc.

Key Developments

1. Key players in the market are focused on collaborations and partnerships, in order to gain competitive edge in the market. For instance, in January 2016, Huawei Technologies Co., Ltd. collaborated with TIM in Brazil to introduce NFV-based 4G HD audio and video communication in Latin America.
2. Major market players are involved in product launches, in order to expand their product portfolio. For instance, in June 2016, Lenovo launched PHAB2 Pro, the first Tango-supported smartphone in the world. The company also launched full-sized PHAB2 and dual-camera PHAB2 Plus smartphones.

Segmentation

Market Taxonomy:

1. By Operating System
   • Android
   • iOS
   • Windows
   • Blackberry operating system
   • other (Sailfish, Tizen, and Ubuntu)
2. By Region
   • Asia Pacific
   • North America
   • Europe
   • Latin America
   • Middle East & Africa
3. By Distribution Channel
   • OEM
   • Retailer
   • e-Commerce