by Smartphones have become an integral part of daily lives. They are portable and powerful mini-computers available at affordable prices. They enable high-speed internet connectivity and access to a wide range of applications for communication, entertainment, productivity and more. Smartphones allow video calling, streaming videos online, social media engagements, online shopping, navigation, mobile payments and digital wallets on the go. The global smartphone market offers a multitude of devices across different price segments. Low-cost Android devices have fueled adoption in emerging markets while high-end flagship phones running iOS or Android attract consumer spending.
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 Dynamics:
One of the key drivers for the growth of smartphone market is the demand for high speed internet connectivity. As internet and broadband access become necessity, consumers rely on their smartphones as the primary device to access high speed mobile internet on the go. Expanding 4G and 5G infrastructure by telecom operators provide faster wireless internet speeds which enhances user experience of OTT applications, video streaming, social media etc on smartphones. This drives replacement and upgrade demand in the market. Further, e-commerce growth fuels compare and purchase behavior using phones anytime anywhere.
Segment Analysis
The global smartphone market is dominated by the mid-priced smartphone segment. Smartphones priced between $200-500 capture around 50% of the total market share due to their attractive features at affordable prices appealing to mass consumers. The premium smartphone segment (over $500) has also captured a significant share owing to rising brand consciousness among upper middle consumers and novel functionalities. However, the low-priced segment (under $200) faces strong competition from cheaper Chinese brands.
PEST Analysis
Political: Trade policies protecting local manufacturers and import tariffs on foreign products impact competitiveness. Favorable policies promoting digitalization and tech adoption can boost sales.
Economic: Rising disposable incomes in developing economies are driving demand. However, inflationary pressures and economic uncertainties may dampen spending.
Social: Younger demographics prefer latest innovations and connectivity options. Social media influence and virtual socializing increase replacement rates.
Technological: 5G networks, artificial intelligence, foldable displays are shaping new experiences. Cloud services, semiconductor advancements fuel product upgrades on existing models.
Key Takeaways
Global Smartphone Market Size is expected to witness high growth driven by emerging economies. The global smartphone market is estimated to be valued at US$ 1.45 Bn in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030.
The Asia Pacific region is projected to grow at the fastest pace during the forecast period owing to rising digitization and increasing disposable incomes in India and China. China will continue dominating the region’s smartphone sales spearheaded by players like Xiaomi, Oppo and Vivo offering value for money devices.
Key players operating in the smartphone market are focusing on new product launches integrated with latest technologies like 5G and AI powered cameras to attract consumers. Partnerships with telecom operators for bundled plans is another strategy to boost average selling prices and market share. Aggressive marketing campaigns especially during online sales further intensify competition.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
