Smartphone Market – Size, Share & Trends Forecast Report 2021-2028 (PDF)

Share This Article

Share on facebook
Share on twitter
Share on linkedin
Share on email

Market Overview

The smartphone market saw 1,366.14 million units shipped in 2020. It is projected to grow to 1,556.67million units by 2026. This will register a CAGR (1.69%) during the forecast period (2021-2026). The growth of the smartphone market is being driven by factors such as rising disposable income, developing telecom infrastructure, budget-centric smartphones, and increasing product launches.

  • In terms of both market size and model offerings, the smartphone industry is steadily growing and developing. According to global projections, 40% of the world’s population will own a smartphone by 2021. Ericsson estimates that six billion people subscribe to smartphones worldwide. This number is likely to rise by hundreds of millions over the next few years. The countries with the highest proportion of smartphone users are China, India, USA. The number of smartphone subscribers is expected to rise to 7516 million by 2026.
  • The Covid-19 pandemic has seriously disrupted the supply-demand balance in the smartphone market. China is the world’s largest manufacturer of components and devices, so the country has been locked down nationwide. This has caused delays in shipments and reduced the development of next-generation smartphones. The country has also been isolated from workers and suppliers. Due to the pandemic, customers are less inclined to spend on luxury items and more on essentials. This has led to a drop in consumer demand for smartphones, particularly premium segments.
  • The Consumer Technology Sales and Forecast Study, conducted by the Consumer Technology Association (CTA), estimated that smartphones generated revenue of USD 77.5 billion in 2019. CTA forecast revenue at USD 71 billion in 2019, a decrease of 6% from the previous year due to the pandemic. CTA predicts that the smartphone industry will rebound in 2021 and generate more than USD 78 billion in new shipments.
  • Xiaomi India claims that it now has seven manufacturing plants, surpassing Samsung, the dominant smartphone seller in India. Xiaomi India claims that 99 percent of its phones are made in India. Although limited quantities are available, the company also exports devices to Bangladesh (and Nepal)
  • In 2021, smartphones sales will rise due to a better consumer outlook, continued learning, and the ability to work from home. As the pandemic situation improved globally, and new markets opened, consumers began to spend on discretionary goods. The global shortage of chips could have a negative impact on the smartphone industry. As demand and supply are not equal, this could increase the average selling price for smartphones worldwide.

Scope of the Report

Smartphones with powerful hardware capabilities, wide-ranging mobile operating systems, more incredible software applications, internet and multimedia functionality (music videos, gaming, etc.) are all included in the scope. Core phone functions like voice calls and text messaging are also considered. Smartphones used for industrial purposes (also known as rugged phones) are not included in the scope. Geographical and operating system segments define the market.

Key Market Trends

The Android Operating System is expected to grow significantly.

  • The sales of Android smartphones have outpaced those of iOS smartphones. According to industry sources, Samsung was the largest smartphone seller in the first quarter of 2021. This is compared to the 57 million iPhone sales globally. This shows that Android smartphones are more popular and user-friendly than iOS smartphones.
  • Many Android OS developers prefer Android OS for developing gaming/entertainment apps, social media applications, and mobile utility applications. This is because it requires developers to be proficient in languages such as C++ Kotlin Java. Google offers various tools such as Android Jetpack and Firebase to help developers create a user-intuitive interface.
  • The platform also allows users to download apps for free, but the applications can be purchased or enrolled in in-app subscriptions. This has generated more revenue in Google Play Stores than in Apple Stores. According to Air now PLC, the revenue generated in April 2021 by coin master was approximately USD 61.02 million through Google Play Stores. The GarenaFree Fire- World series and PUBG Mobile-Karakin generated USD 38.56 and 37.76, respectively, in April 2021.
  • 5G smartphones will be more popular due to the increasing demand for high-speed connectivity for IoT (Internet of Things), applications such as energy management, and smart homes. In January 2021, OPPO India stated that it plans to launch six more 5G-enabled smartphones in India. This is in response to the increasing importance of 5G-ready products and the Internet of Things (IoT) for Indian smartphone makers.

Get a sample report to understand key trends

Asia Pacific (excluding China) is expected to hold a significant market share.

  • Smartphones at the entry-level price point will drive the demand. This is due to the growing demand from developing countries such as India and Indonesia. In these countries, smartphones are more accessible to rural areas, as local governments push for digital and mobile economies. The Government of India’s flagship program, Digital India, is an example of this. It primarily targets the transformation of India into a digitally empowered country.
  • India also launched PLI Scheme, which provided 6-4% incentives for five years on incremental handset sales over 2019-2020. To claim the incentives, high-end multinational cell phone manufacturers, which produce handsets valued over USD 200, must sell goods above INR 400m in 2020-21. These initiatives are expected to increase the smartphone market in India.
  • Due to its large customer base and highly developed telecom sector, the Asia-Pacific region is a significant smartphone market. The region is also investing more in the mobile network. Countries such as South Korea, Japan, Australia, and Singapore are investing in developing the regional telecom market. This is also expected to drive the market.
  • As per government lockdown directives, Xiaomi and Lenovo Motorola had shut down their handset factories in India by March 2020. This was to prevent the spread of the coronavirus. Samsung, which has moved a large production facility to Vietnam, is currently experiencing production delays. The Ministry of Industry and Trade in Vietnam also highlighted that Samsung’s latest smartphones are being delayed in production. The country’s dependence on China for material and equipment makes it vulnerable to such an epidemic. This affected the sales of Samsung’s latest smartphones in the region.

Get a sample report to understand the trends in geography.

Competitive Landscape

The smartphone market is highly competitive, with established players like Apple, Samsung, Huawei, Apple, Xiaomi, and Apple dominating. These players continue to launch new models with minor technology changes, such as battery power, camera configuration, and/or processor. Here are some recent market developments:

  • July 2021 – Vivo Communication Technology Co. Ltd. has launched the powerful vivoY72 in India. The Y72 smartphone is priced at INR 20,990 and offers a superior smartphone experience with its robust features. It also has a distinct design that stands out in its class. The 8GB+4GB RAM expandable RAM prevents the smartphone from choking when multitasking.
  • July 2021 – Samsung India launches a new smartphone, Galaxy A22 5G. The device supports 11 bands for 5G and offers two-year OS upgrades. It features a 6.6-inch FHD+ display, versatile 48MP triple-camera, a 5000mAh battery, and countless other innovative features.
  • April 20, 2121 – Guangdong Oppo Mobile Telecommunications Corp., Ltd, introduced a new smartphone, the OPPO F19, in India under its renowned F series. The F19-series-compliant OPPO F19 features a minimalist, sleek device that charges the vast 5000mAh battery while maintaining a lightweight and sleek design.

Major Players

  1. Samsung Electronics
  2. Apple Inc.
  3. Huawei Technologies Co., Ltd.
  4. Xiaomi Corporation
  5. Vivo Communication Technology Co. Ltd

Recent Developments

  • Apple Inc. launched iPhone 12 Pro Max and iPhone 12 Pro Max in October 2020. These devices offer a powerful 5G experience with advanced technologies. The new design featured edge-to-edge Super Retina XDR displays that were the largest ever seen on iPhone. It was protected by the Ceramic Shield front cover, which offers the most significant increase in durability on iPhone. The Apple-designed A14 Bionic chip and all-new Apple ProRAW allow for greater creative control in photos. It also enables the Dolby Vision experience at 60 frames per second.
  • July 2020 – Samsung Electronics introduces the Galaxy Z Flip 5G. The Samsung Galaxy Z Flip 5G, the first Samsung Galaxy device to have the Qualcomm Snapdragon 865Plus 5G Mobile Platform, is now available. This platform maximizes 5G’s power with a revved-up performance that delivers faster on-device processing and sharper imagery via improved graphics rendering.

 

Related Reports