July 24, 2024
Smartphone Market

Increasing Demand For Cutting-Edge Technology To Drive Growth In The Global Smartphone Market

Market Overview:

Smartphones are portable computing devices that combine the functionality of a personal digital assistant (PDA), portable media player, and mobile phone and allow for fully-featured internet connectivity. They are commonly larger than feature phones but also include capabilities like apps, internet connectivity, digital cameras, and larger touchscreens. Advancements in processing power, memory capacity, and internet connectivity have driven demand for newer models with cutting-edge specifications. 5G network connectivity allows for faster data transfer speeds and supports emerging technologies like augmented reality/virtual reality, edge computing, and the internet of things.

The smartphone market is estimated to be valued at US$ 1.45 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in the global smartphone market is the rising adoption of dual and triple rear camera setups in mid-range and flagship devices. Multiple cameras allow for improved photography capabilities like optical/digital zoom, wide-angle shots, depth sensing for enhanced bokeh effects and more natural portrait shots. Another trend is the increasing integration of advanced artificial intelligence capabilities like facial recognition for biometric security, image recognition for augmented reality apps, and AI-powered virtual personal assistants. Foldable/flexible display technology is also witnessing rapid innovation with slimmer phones that can be folded into compact sizes for better portability. Ongoing R&D initiatives are expected to bring down manufacturing costs and make these novel designs more affordable over the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the smartphone market is dominated by few major brands. However, introducing new features at competitive prices can attract consumers.

Bargaining power of buyers: The bargaining power of buyers is high in this market due to presence of many brands providing a variety of options at different price points. Buyers can easily switch to substitutes if a particular brand fails to meet their demands.

Bargaging power of suppliers: Chipset providers being few in number hold significant power over smartphone OEMs. However, OEMs try to mitigate this power through integrating capabilities.

Threat of new substitutes: Products like tablets, laptops and other smart devices pose threat of substitution. However, smartphones are increasingly becoming a daily necessity device.

Competitive rivalry: Intense competition exists among major brands like Samsung, Apple etc. to launch latest features and innovative designs frequently to attract consumers.

Key Takeaways

The global Smartphone Market Growth is expected to witness high growth, exhibiting CAGR of 4.1% over the forecast period of 2023 to 2030, due to increasing digitization and adoption of advanced technologies. The market size for 2023 is estimated to be US$ 1.45 Bn.

Regional analysis indicates Asia Pacific as the fastest growing region owing to rising disposable incomes in developing economies like India and China. North America and Europe continue to hold prominent shares in the overall smartphone market due to early adoption of latest technologies.

Key players operating in the smartphone market are Samsung Electronics, Apple Inc., Huawei Technologies Co., Ltd., Xiaomi Corporation and Vivo Communication Technology Co. Ltd. Samsung with wide distribution network dominates the global market, however competition is intensifying with Chinese brands offering feature-rich smartphones at competitive prices. These companies focus on continuous innovation and providing unmatched after-sales services to consumers.

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