May 26, 2024
Global Smartphone Market

The Global Smartphone Market Driven By Increasing Demand For Advanced Features

The smartphone market has witnessed steady growth over the past decade owing to the rising adoption of technologically advanced smartphones across various regions globally. Smartphones provide a range of features and applications that cater to both personal and professional needs of consumers. Features such as high resolution cameras, long lasting batteries, advanced processors and ample storage allow users to seamlessly carry out tasks such as photography, videocalling, gaming and content streaming on a single portable device. The easy availability of affordable smartphones with premium functionalities have made them a necessity for both personal and work purposes.

The global Smartphone Market is estimated to be valued at US$ 1.45 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The smartphone industry will see key innovations in 5G networks, artificial intelligence powered devices, improved cameras and new form factors in the forecast period. 5G network rollout is expected to accelerate across major world economies by 2025. This will drive the demand for 5G enabled premium smartphones featuring applications requiring high speed internet connectivity. Manufacturers are also integrating AI capabilities in devices to enable enhanced photography, voice assistants, predictive analysis and spam filtering. Camera technologies will continue to advance with features like enhanced zoom, low light photography and advanced image stabilization. New dual screen and folding display smartphones are likely to gain popularity offering larger screen experiences and multi-tasking capabilities in compact designs.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the smartphone market is moderate as it requires huge investment to establish a brand and distribution channels. However, new players can partner with telecom operators.

Bargaining power of buyers: The bargaining power of buyers is high in the smartphone market as there are numerous brands offering a variety of models at different price points. Buyers can easily switch between brands.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as smartphone manufacturers depend on a limited number of suppliers for key components like processors, screens, and memory chips. However, companies try to diversify their supplier base.

Threat of new substitutes: The threat of new substitutes is low as there are no close substitutes that can provide mobility and connectivity like a smartphone. Devices like tablets, PCs, and laptops offer partial functionality of a smartphone.

Competitive rivalry: The smartphone market is highly competitive with companies launching new models regularly with innovative features. Players try to differentiate through specifications, design, brand value, and Aftersales support.

Key Takeaways

The Global Smartphone Market Size is expected to witness high growth over the forecast period supported by increasing internet and broadband penetration. The emergence of 5G networks will fuel the demand for 5G enabled smartphones.

Regional analysis: Asia Pacific dominates the global smartphone market with China being the largest country. India is the fastest growing market in the region supported by growing disposable incomes, increasing digitization, and cheap data plans. North America and Europe are mature markets while African and Latin American markets offer growth opportunities.

Key players: Key players operating in the smartphone market are Vidyo, Sightcall, Sinch, GENBAND, Twilio Inc., TokBox, Agro.io, and Xura. Players focus on partnerships, mergers, and new launches to strengthen their market presence and portfolio of 5G enabled models. They also invest heavily in R&D to introduce breakthrough technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile i