PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397101
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1397101
Smartphone Market size was valued at USD 490,320 Million in 2022, expanding at a CAGR of 8.5% from 2023 to 2030.
The handheld electronic device known as a smartphone enables users to connect to a cellular network and offers a wide range of advanced features. These features include the ability to play audio and videos, display images, browse the Internet, and send emails. Despite having smaller screen sizes compared to desktop computers, smartphones are capable of performing all the functions of a computer. They are equipped with touch screens that allow users to interact with them and can operate on various mobile operating systems such as Windows Mobile, iOS, Android, Symbian, and BlackBerry OS. This versatility enables users to run a variety of applications, including those for business purposes, gaming, and personal use. One of the most popular smartphones available today is the Apple iPhone, as depicted in the accompanying image. For instance, there is a wide range of smartphones available in the market that utilize the Android operating system. Android supports various Google products such as Google search, Google Drive, and Gmail.
The market is anticipated to experience growth due to the surge in urban population and heightened consumer consciousness regarding the utilization of mobile devices.
In recent times, the majority of the world's population utilizes smartphones due to their extensive range of applications. Despite the numerous advantages they offer, the addiction to smartphones among students is steadily rising, currently standing at 24.8%-27.8% and increasing annually. The mobile phone has become the primary means of accessing information and communication technology. The detrimental effects of excessive smartphone usage have garnered attention from sociologists, psychologists, and education scholars. As of 2022, there are approximately 6.8 billion smartphone users globally (Statista, 2022), which accounts for over 80 percent of the global population of 8 billion. It is projected that smartphone usage will continue to rise, surpassing seven billion in 2024 and reaching 7.5 billion by 2026, according to Mobile device statistics. Additionally, the growth of e-commerce, mobile banking, digital entertainment, and various online services presents opportunities for the smartphone market. However, consumers are becoming increasingly concerned about privacy and data security issues, which can impact trust and influence the adoption of new technologies.
The Global Smartphone Market is segmented on the basis of Operating system, Distribution Channel, and Region.
The market is divided into two categories based on Operating system: Android and iOS. iOS dominates the market growth. Apple's mobile devices, namely the iPhone and iPad, operate on a proprietary operating system called iOS. This platform is the second-most utilized mobile device operating system globally, trailing only Android. iOS is a significant contender in the smartphone market, renowned for its high-end branding, intuitive interface, strong security measures, and seamless integration with the broader Apple ecosystem.
The market is divided into three categories based on Distribution Channel: Retailers, OEMs stores and E-commerce. E-commerce segment is expected to dominate the market growth. The growth of the smartphone market is anticipated to be dominated by the e-commerce segment. Numerous e-commerce enterprises have created specialized applications for smartphones, which provide customers with a user-friendly interface and functionalities that simplify shopping, product comparison, review reading, and transaction completion on their mobile devices.
Geographically, this market is widespread into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. The market growth is dominated by the Asia Pacific region, primarily due to its highly developing telecom sector and large customer base. Several countries in the Asia Pacific, such as China and India, have been rapidly expanding and upgrading their telecom infrastructure. This includes the implementation of 4G and 5G networks, which offer faster and more reliable connectivity, thereby driving the adoption of smartphones. In 2022, China's telecommunications industry experienced steady expansion, with emerging businesses and new infrastructure growing at a rapid pace, as indicated by official data. The revenue generated by firms in this sector exceeded 1.58 trillion yuan (equivalent to 233.38 billion U.S. dollars), marking an 8 percent year-on-year increase, according to the Ministry of Industry and Information Technology. The market's expansion in the upcoming years is expected to be fueled by the increasing integration of AR technology and the growing number of over-the-top (OTT) platform subscriptions. China has topped 2.31 million 5G antennas by the conclusion of 2022, which represents 60% of the world's total, with around 887,000 of them created in the same year. According to the government, the number of 5G smartphone users has reached 561 million, accounting for one-third of China's smartphone users. Europe as well as North America are expected to drive market expansion during the forecast period, owing to higher disposable incomes, the growth of telecommunications networks, and the availability of low-cost smartphones..
The smartphone industry is characterized by intense competition, as various brands and companies strive to gain a larger market share. Unlike many other industries, there are no specific regulations governing smartphones. As a result, the market is flooded with numerous brands, with Apple and Samsung emerging as the leading premium manufacturers. While it is possible to estimate market share, it is crucial to consider the qualitative aspects of competition within this industry. The competitive landscape is constantly evolving, with companies continuously innovating and introducing new models to meet the ever-changing demands of consumers. For instance, Apple recently unveiled the iPhone 15 Pro and iPhone 15 Pro Max, which boast a cutting-edge design featuring aerospace-grade titanium. This material not only provides exceptional strength but also ensures that these models are the lightest Pro versions ever produced by Apple. Additionally, the new design incorporates contoured edges and a customizable Action button, enabling users to personalize their iPhone experience.
On August 2023, Samsung, a major player in India's smartphone industry, is now excited about growing its presence in the nation's $1,000 (Rs 80,000) and above ultra-premium class. Samsung now holds a sizable 40% share in this group of products for the first half of the year (H1), with plans to boost it to 50% by December end.