PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1552406
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1552406
The global smartphones market is poised for significant expansion in the upcoming years, driven by a range of factors that continue to influence consumer behavior and technological advancements.The global smartphone market is set for considerable expansion, projected to grow from $590 billion in 2024 to $982.8 billion by 2031, at a compound annual growth rate (CAGR) of 7.60%. The increasing trend of e-Commerce and m-Commerce, especially among the working population, is a primary driver behind this growth. As more people gain access to the Internet, smartphone vendors are capitalizing on the opportunity by increasing their marketing activities. Additionally, the growing number of social media subscriptions is further fueling the demand for smartphones across the globe.
In recent years, the economic slowdown resulting from the COVID-19 pandemic led to a surge in demand for budget-friendly smartphones. However, as the global economy recovers, rising disposable incomes are expected to drive consumer spending on media, entertainment, and mobile communication. This, in turn, is anticipated to boost the sales of consumer electronics such as smartphones, tablets, laptops, and gaming consoles.
When comparing the consumption trends of smartphones from previous years with future market projections, a noticeable increase in demand is evident. This growth is largely attributed to the integration of Artificial Intelligence (AI) technology in smartphones. Major players in the market, including leading brands, are introducing advanced AI chips in their devices, enabling them to perform a higher number of operations per second while consuming less power.
Fairfield Market Research highlights that North America and Asia Pacific are the leading regions in the smartphones market. The growth in North America is supported by the presence of advanced telecom infrastructure, rapid deployment of 5G technology, and the concentration of key smartphone manufacturers in the region. Overall, the global market for smartphones is set to experience steady growth over the forecast period.
Key Drivers of Demand for Smartphones
The introduction of 4G LTE technology and the ongoing rollout of 5G services in various developing countries are expected to significantly drive smartphone sales. Manufacturers are increasingly focusing on launching 5G-enabled smartphones to cater to the growing demand from tech-savvy consumers. As 5G technology becomes more widespread, the prices of 4G smartphones are expected to decline, further driving sales volumes.
Smartphone adoption is particularly high among urban populations, which has led to a strong demand for smartphones in developed regions. In these areas, where the ratio of urban to rural population is higher than in developing regions, smartphones have become an essential tool for communication, work, and entertainment.
Regional Insights
In the United States, the smartphones market continues to grow at a robust pace, with one particular brand enjoying immense popularity. The market is expected to maintain its growth trajectory, supported by a strong consumer preference for premium smartphones. In terms of operating systems, the market is dominated by two major platforms, with one having a slight edge in terms of market share.
India, on the other hand, is emerging as a significant market for smartphones, particularly in the mid- to low-range segments. The country's rapid telecom infrastructure development and economic growth are driving demand for smartphones, especially in urban centers. The Indian market is expected to grow substantially, supported by the increasing availability of affordable electronic components and products.
In Europe, the U.K. stands out as the leading market for smartphones, with a particular focus on one operating system. The country is expected to experience considerable growth in the coming years, driven by substantial investments from consumer electronics manufacturers in the production of smartphones. The market is primarily dominated by two operating systems, with one leading the way in terms of market share.
Category-wise Insights
When it comes to operating systems, the Android platform continues to dominate the global smartphones market. This is largely due to the high demand for reasonably priced Android smartphones, which are popular among a wide range of consumers. However, the iOS platform is also expected to see substantial growth, driven by a growing preference for high-end smartphones.
In terms of pricing, mid-range smartphones are experiencing the highest demand. These devices, which fall within a specific price range, are particularly popular among budget-conscious consumers who are looking for a balance between performance and affordability. As a result, more companies are launching smartphones in this segment to capture a larger share of the market.
Impact of the COVID-19 Pandemic
The COVID-19 pandemic had a significant impact on the global smartphones market. The electronics manufacturing industry, in particular, faced major disruptions due to the pandemic, with many companies struggling to meet the increasing demand for semiconductor components and chips. Smartphone shipments declined during the height of the pandemic, as manufacturers faced challenges in sourcing the necessary labor and materials for production.
Despite these challenges, the market is expected to recover as the global economy stabilizes. Manufacturers are expected to ramp up production to meet the growing demand for smartphones, particularly in regions that are witnessing rapid technological advancements and infrastructure development.
Competitive Analysis
The competitive Analysis of the smartphones market is characterized by intense competition among key players, who are investing heavily in innovation, research, and development to meet the rising demand. Technology continues to play a crucial role in the development of smartphones, with manufacturers focusing on enhancing the quality and customer experience to capture a larger share of the market.
Market players are also adopting various strategies to stay ahead of the competition. These include acquisitions, new product launches, and software updates for mobile apps, all aimed at offering advanced smartphones to consumers. Among the leading players, certain companies dominate the market in specific regions and product segments, with one particular brand leading the global Android-based market, and another enjoying a strong presence in developed countries with its premium smartphones.
Key Companies Profiled
Smartphones Industry Survey by Category