Global Smartphone Market (Updated Version Available)

Key Market Overview:

The global smartphone market is projected to grow at a CAGR of 6.86% from 2023 to 2030, reaching a value of USD 826.44 Billion by 2030, up from USD 485.98 Billion in 2022. This growth is driven by increasing consumer demand for smartphones, technological advancements, and rising adoption of 5G technology. Factors such as increasing internet penetration, expanding e-commerce industry, and growing digitalization are expected to fuel the growth of the market over the forecast period.

A smartphone is a portable gadget that provides access to digital functions such as digital video along with internet-based services including email and web browsing. The smartphone has advanced features such as touchscreens, high-speed internet connectivity, cameras, GPS navigation, and app stores that allow users to download various applications. Smartphones have revolutionized the way of communication and interaction with the world and have become an essential requirement in todays world. Moreover, smartphones facilitate easy communication, online banking, navigation, and entertainment driving the growth of the market.

The growing trend of social media platforms such as Facebook, Instagram, and Twitter is driving the demand for smartphones. Additionally, the rising popularity of social media influencers is contributing to the demand for smartphones, particularly among younger generations. Influencers use smartphones to create and share content, leading to the adoption of new features and technologies, such as high-quality cameras and video editing software. For instance, in January 2023, Samsung Electronics Co., Ltd. launched the Galaxy S23 smartphones series that has improved cameras allowing users to explore the world\'s fastest mobile graphics. The Galaxy S23 offers HD videos and the best sound quality of the Samsung series driving the growth of the market.

Global Smartphone Report Coverage:

Report Attributes	Report Details
Study Timeline	2017-2030
Market Size in 2030 (USD Billion)	826.44 Billion
CAGR (2023-2030)	6.86 %
Base Year	2022
By Operating System	Android, iOS, Windows, and Others
By Display Technology	LCD, OLED, AMOLED, and IPS
By Screen Size	Small Screens (Less Than 5 Inches) and Large Screens (Greater Than 6.5 Inches)
By Price Range	Low Range, Medium Range, and High Range
By Distribution Channel	OEMs Stores, Retailer, and E-commerce
By End Use	Retail, Restaurants, Media & Entertainment, Healthcare, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	Samsung Electronics Co., Ltd., Apple Inc., Vivo Communication Technology, Guangdong Oppo Mobile Telecommunications Corp., Ltd, Xiaomi Corporation, Lenovo Group Limited, OnePlus Technology Co. Ltd, Microsoft Corporation, Nokia Corporation, Huawei Technologies Co. Ltd

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Market Dynamics:

Driver:

The growth of smartphones is driven by a combination of technological advancements, including mobile operating systems, high-speed mobile internet, camera technology, and mobile payment technology. Mobile operating systems such as Apples iOS and Googles Android provide a platform for developers to create apps from social networking to gaming that run on smartphones. Additionally, the ability to make payments using a smartphone has remarkably contributed to the growth of the smartphone market. The increasing adoption of mobile payment technology by consumers to pay for goods and services has increased the demand for smartphones which in turn is fueling the market growth. For instance, in March 2023, Huawei XMAGE 2.0 announced the launch of the P60 Series which is designed to enhance mobile payments with Huawei smartphones. Also, XMAGE 2.0 include improvements to image processing algorithms, increased processing power, and other new features designed to improve the user experience.

Restraint:

The smartphone market is mainly dominated by China, India, the U.S., South Korea, and Japan. However, the changing relationship between China and US is hampering the growth of the market as the supply chain is disrupted. The disruption in the supply chain is leading to unavailability of the raw materials, especially semiconductor components. The shortage of raw materials has created competition among the manufacturers, increasing the cost of smartphones and hindering the growth of the market.

Opportunities:

The growth of wearable technology, particularly smart watches, and fitness trackers, is expected to offer an opportunity for smartphone manufacturers to create new products that integrate with such devices. Smartphone manufacturers are projected to create companion apps for the device that integrate with wearable technology. The apps provide users with access to additional features and functionality that are not available on the wearable device itself. For instance, a fitness tracker provides basic information about the users activity level, but a companion app is expected to provide more detailed data such as nutrition tracking.

Global Smartphone Market Competitive Landscape:

The Qatar smartphone Market is highly competitive, with several key players competing for market share. The market is also characterized by rapid innovation and technological advancements, and companies must constantly innovate and adapt to stay ahead of the competition. Key companies are:-

• Samsung Electronics Co., Ltd.
• Apple Inc.
• Vivo Communication Technology
• Guangdong Oppo Mobile Telecommunications Corp., Ltd
• Xiaomi Corporation
• Lenovo Group Limited
• OnePlus Technology Co. Ltd
• Microsoft Corporation
• Nokia Corporation
• Huawei Technologies Co. Ltd

Recent Developments:

• In October 2022, Samsung Electronics announced an expanded agreement with Google to advance smart home interoperability. Users of Samsung Galaxy phones and tablets will be able to quickly add Matter-compatible products to both the SmartThings and Google Home ecosystems in the coming months.

• In August 2021, Samsung introduced the ‘Galaxy Z Flip3 5G\' and ‘Galaxy Z Fold3 5G\', the innovative foldable mobile phone. With iconic design, both devices are built with flagship innovation, offering a unique user experience to work, play and watch.

Smartphone Market Segmentation:



By Operating System

The operating system is classified into Android, iOS, Windows, and Others. Android dominates the market as android is an open-source operating system and is available on a wide range of devices, from smartphones to tablets. Additionally, android offers a high degree of customization, allowing users to personalize the devices with different themes, launchers, and widgets. Moreover, android is closely integrated with Google services, such as Gmail, Google Maps, and Google Assistant that is easy for users to access the services on the devices. For instance, according to the StatCounter report released on January 2022, Android remains the worlds most popular mobile operating system, with a market share of 72.26%. The iOS operating system is anticipated to register the fastest CAGR owing to the rising demand for Apple phones. Additionally, Apple phones are witnessing growing demand from developing countries, such as India, China, and South Africa, especially from the young population. Furthermore, iOS is known for robust security and privacy features, which have become increasingly important to users in recent years. Therefore, the demand for the iOS operating system is expected to increase as more users are becoming concerned about data privacy and security. For instance, in March 2023, Apple launched iPhone 14 and iPhone 14 Plus with the iOS operating system that comes with a range of communication applications, such as the Phone app, iMessage, FaceTime, and Mail. The apps allow users to connect with friends and family, share photos and videos, and keep up with news and trends.

By Display Technology

The display technology segment is categorized into LCD, OLED, AMOLED, and IPS. The LCD dominates the market as LCDs are more affordable than other display technologies such as AMOLED and IPS. Additionally, LCDs reproduce colors accurately and vividly, gaining application in areas where color accuracy is important, such as photography, graphic design, and gaming. Moreover, LCDs are highly durable and energy-efficient as LCDs consume less power than other display technologies, driving the growth of the market. The OLED display technology is anticipated to register the fastest CAGR as OLED displays offer superior image quality with high contrast ratios, deep blacks, and vibrant colors. OLEDs also display true blacks because each pixel emits its light, unlike LCDs that require a backlight. Additionally, OLED technology is flexible and is used to create curved or foldable displays that are expected to create new possibilities for product design and user experience. For instance, in January 2023, Samsung unveiled a new OLED display with a peak brightness greater than 2000 nits at the SID (Society for Information Display) Display Week. The display is one of the brightest OLED displays ever made and delivers high-quality images even in bright sunlight.

By Screen Size

The screen size is bifurcated into small screens (less than 5 inches) and large screens (greater than 6.5 inches). Large screens dominate the market as large screens provide a better viewing experience to users for watching videos, browsing photos, or playing games. Additionally, large screens increase productivity by allowing users to view and edit documents, spreadsheets, and presentations more easily, particularly for business users who work on their phones. For instance, in February 2022, OPPO launched the Find X5 series, designed to capture stunning images and provide a superior user experience. The smartphone has a screen size of 6.55 inches that makes multitasking easier on the phone by enabling users to switch between multiple screens easily. In addition to the advanced camera system, the Find X5 series boasts a true billion-color 120Hz display, offering a vivid and immersive viewing experience. The small screens are projected to witness the fastest CAGR as small screens are more portable and easier to handle than larger screens. The demand for small screens is more among users who prioritize mobility and convenience hence, driving the growth of small screens. Additionally, smaller screens are less expensive to produce as compared to large screens which in turn is expected to fuel the growth of the small-screen smartphone market.

By Price Range

Based on price range the smartphones are trifurcated into low range, medium range, and high range. The low-range smartphones (below USD 200) dominate the market as low-range smartphones offer affordability and accessibility to a wide range of consumers. Low-range smartphones have basic features such as a camera, internet connectivity, and messaging capabilities that are essential for the users. Additionally, the market for low-range smartphones is growing in developing countries, where consumers are price-sensitive and cannot afford more expensive devices. The medium-range smartphones are predicted to register the fastest CAGR as mid-range smartphones offer a balance between features and affordability and offer features such as high refresh rate displays, 5G connectivity, and advanced camera systems. Additionally, smartphone manufacturers are shifting the marketing strategies towards mid-range devices that are expected to increase demand for mid-range smartphones. For instance, companies including Samsung and Xiaomi are focusing more on mid-range smartphones, which is an attractive option for consumers who are looking for a high-quality device at a reasonable price.

By Distribution Channel

The distribution channel is trifurcated into OEMs Stores, retailers, and E-commerce. OEMs dominate the market as OEMs have established strong relationships with consumers over the years, hence gaining a significant advantage in the market. Also, OEMs have invested heavily in building brand recognition, to establish a loyal customer base and consumers tend to purchase a smartphone from a reputable OEM compared to an unknown brand. Furthermore, OEMs offer a wide range of smartphone models at different price points, which is attractive to consumers therefore, OEMs dominate the market by distribution channel. For instance, in March 2021, Vivo Mobile Communication Co., Ltd. stated that the company is opening 150 exclusive stores in India to drive the smartphone market share. The company aims to strengthen its presence and provide a premium shopping experience to customers through exclusive stores. E-commerce is projected to witness the fastest CAGR as E-commerce offers convenience by allowing customers to shop from the comfort of the homes. Also, E-commerce enables consumers to compare prices, read product reviews, and then make purchases. Moreover, E-commerce companies provide a personalized shopping experience to customers and include features such as recommendations based on browsing history and purchase history, as well as targeted promotions and discounts. The aforementioned factors are expected to drive the growth of the E-commerce distribution channel during the forecast period.

By Region

Asia-Pacific dominates the smartphone market owing to the increasing investment in mobile networks with 5G technology and the internet of things (IoT) which in turn is propelling the market growth. Additionally, the improved digital infrastructure, intensifying acceptance of E-commerce, surging internet usage, and 5G-compatible phone production in countries like India are driving the market growth. For instance, in September 2022, according to the India Brand Equity Foundation, smartphone exports increased to USD 1.7 billion in India during April-September 2021. The increase in sales in turn is bolstering the growth of the smartphone market in Asia-Pacific.



North America is expected to witness the fastest CAGR due to the presence of key players such as Apple, Inc., SAMSUNG, and Huawei Device Co., Ltd. that are emphasizing product expansion across various countries. The key players constantly apply innovations to strengthen the market position and apply strategic mergers and investments to expand the market presence. For instance, in April 2021, Apple announced it to invest USD 430 billion in the United States over the next five years. The investment includes a range of initiatives such as building a new campus in North Carolina, expanding its data centers across the country, and strengthening Apple\'s market position.