Global Smartphone Market Size, Share, and COVID-19 Impact Analysis, By Operating System (Android, iOS & Others), By Price Range (Low range, Medium range & Premium range), By Distribution Channel (OEMs, Retailers & Online), and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa) Analysis and Forecast 2022-2030

KEY MARKET INSIGHTS

The Global Smartphone Market was valued at USD 507.2 billion in 2021 and is projected to grow USD 982.8 billion in 2030, at a CAGR of 4%.

A smartphone is a type of mobile phone that differs from a feature phone in terms of hardware and software capabilities, as well as a variety of mobile operating systems. Smartphones offer a variety of services, including multimedia (music, video, game, and photography), voice and video calls, internet (including online browsing), and a variety of software functions.

A smartphone can run on a variety of operating systems, including iOS (Apple), Android (Google), Windows (Microsoft), Blackberry Operating System, and others. Smartphone usage has surged as a result of the growth of social media platforms such as Facebook and Twitter.

Smartphones have progressed significantly over-time and are now equipped with cutting-edge technologies such as the global positioning system (GPS), gyroscope, flash memory, optical fingerprint sensors, near field connection (NFC), augmented reality, and virtual reality.

The smartphone industry has been continually evolving and rising over the period. By 2021, it is expected that 40% of the world's population will own a smartphone. According to Ericsson, the number of smartphone subscriptions worldwide has surpassed six billion, with several hundred million more predicted in the next years. The countries with the most smartphone users are China, India, and the United States.

COVID-19 ANALYSIS

The Covid-19 outbreak has thrown the smartphone market's supply-and-demand equation into disarray. Because China is the worldwide production center for most of these gadgets and components, the smartphone manufacturing sector has been negatively impacted by delayed shipments and slowed development of next-generation products as a result of the state-wide lockdown.

In addition, the country has been cut off from its suppliers, labor, and logistics networks. Furthermore, consumer demand for smartphones has decreased, particularly in the premium category, as a result of customers' desire to cut back on luxury spending and focus on fundamentals as a result of the epidemic.

LATEST TREND

Growing Usage of Smartphones in Developing Economies

Smartphone adoption is far higher among urban residents than rural residents, resulting in increased demand for smartphones in developed countries. The incorporation of Artificial Intelligence (AI) technologies in many mobile phones has increased demand for smartphones.

Major players in the market, like as Apple, Samsung, and Huawei, are releasing strong smartphone AI chips that can execute up to 5 trillion operations per second while using significantly less power.  

DRIVING FACTORS

Proliferation of 5G Network creating the Demand of Smartphones

The introduction of 4G LTE technology and 5G network in a number of emerging countries is projected to boost smartphone sales in those countries. Various smartphone makers are focusing on releasing 5G devices in order to meet the growing demand for 4G and 5G smartphones among tech-savvy consumers. As demand for 5G devices grows, costs for 4G smartphones are likely to fall, resulting in increased sales volume.

Increasing Disposable Income Aiding the Market Growth

Consumers' disposable income has increased among population over the world, which has improved their ability to spend on media, entertainment, mobile communication devices, and networking. Electronic gadget purchases, such as cell phones, laptops, tablets, and gaming consoles, have increased significantly in recent years.

According to an independent poll conducted among electronic device suppliers in early 2016, demand for smartphones has surged significantly as consumers' disposable income has increased, particularly in emerging markets. As a result, rising disposable income is predicted to drive growth in the worldwide smartphone market over the forecast period.

RESTRAINTS

Stagnating Demand in High-End Markets

Apple Inc. and Samsung which are premium smartphone manufacturers offers high-end phones, which have seen increased demand in recent years, particularly in wealthy countries such as the United States, Canada, and Europe. Consumers in price-sensitive regions like China and India, on the other hand, demand smartphones with the same functionality as high-end smartphones but at a lower cost.

SEGMENTATION

The global smartphone market is segmented by Operating System (Android, iOS & Others), by Price Range (Low range, Medium range & Premium range), by Distribution Channel (OEMs, Retailers, and Online) and Region. Based on the operating system, the market is categorized android, iOS, and others. Based on price range, the market is categorized into low range, medium range & premium range. Based on distribution channel, the market is categorized into OEMs, retailers and online. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, South America, Middle East and Africa.

Operating System Insights

Based on the operating system segment, the global smartphone market is categorized into android, iOS & others. The android segment has dominated the market share in 2020 of global smartphone market owing to the most preferred operating system among application developers and smartphone manufacturers. Android offers apps mostly free of cost as compared to other operating systems. However, it provides in-app purchases which generates more revenue for this segment.

Price Range Insights

Based on the price range segment, the global smartphone market is categorized into low range, medium range & premium range. The medium range segment has dominated the market share in 2020 of global smartphone market owing to the increasing disposable income among the millennials and shifting focus from low range to medium range smartphones as it offers better features and specifications are few factors aiding the market growth.

Distribution Channel Insights

Based on the distribution channel segment, the global smartphone market is categorized into OEMs, retailers & online. The retailers segment is dominated the market share in 2020 of global smartphone market owing to the easy availability and consumer preference as they believe to touch and check before buying. The significant consumer preference for buying products from major retail outlets, where consumers are offered an abundance of alternatives in terms of brands and pricing, can be ascribed to this dominance.

The online segment is anticipating the fastest CAGR of global smartphone market over the next few years due to the huge popularity of e-commerce platforms as it provides discounts and huge offers coupled with exchange of old smartphones.

REGIONAL INSIGHTS

Asia Pacific region is dominating the market share of global smartphone market owing due to reasons such as rising per capita and disposable income in the region, the presence of a large population with increasing disposable income, and a growing interest among the public to adopt new technologies and services, the smartphone market in Asia Pacific is booming.

In India, companies like Jio, Airtel, and others are slowly growing smartphone use while also raising demand by delivering data at the lowest feasible cost. Increased demand from developing countries in the region, such as India and Indonesia, where smartphones are quickly infiltrating rural regions as local governments push for a digital and mobile economy, is projected to fuel demand for smartphones at the entry-level price points. For example, the Government of India's Digital India programme is a flagship initiative aiming at converting India into a digitally enabled society. However, North America region is anticipated to grow over the next few years of global smartphone market owing to the increasing launches of new brands by key players and presence of major players in the region are projected to boost market growth. To grow their businesses, key players and startups are utilizing techniques similar to those used by major luxury companies.

PLAYERS PROFILED:

• Apple Inc.
• Google LLC
• Sony
• BBK Electronics Corp. LTD
• Huawei
• Motorola (Lenovo)
• Nokia (HMD Global)
• LG Electronics
• HTC Corporation
• ASUS
• SAMSUNG
• Others

Key Developments:

July 2021- Samsung has launched a new smartphone, Galaxy A22 5G. It offers 11 bands’ support for 5G experience and two-year OS upgrades in India.

August 2021- Lenovo has expanded their manufacturing facility for the manufacturing of smartphones by partnering with Dixon Technologies at Noida, Uttar Pradesh.

SEGMENTATION

By Operating System

• Android
• iOS
• Others

By Price Range

• Low range
• Medium range
• Premium range

By Distribution Channel

• OEMs
• Retailers
• Online

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy
• Asia-Pacific- China, Japan, India
• Latin America- Brazil, Argentina, Colombia
• The Middle East and Africa- United Arab Emirates, Saudi Arabia