Smartphone Market is Estimated to Witness High Growth Owing to Opportunity of Increasing Digitization

Smartphones have become an essential part of people's daily lives with their ability to access the internet, digital payments, mobile banking, navigation and entertainment like music and video streaming. Smartphones offer various advantages over traditional phones like large storage, high quality cameras, gaming capabilities and easy access to a wide variety of apps. The growing demand for these multifunctional devices along with increasing internet penetration in developing countries is fueling the growth of the global smartphone market.

The Global Smartphone Market Size is estimated to be valued at US$ 1.68 trillion in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:
The increasing penetration of internet and rising adoption of digital technologies across industries is creating abundant opportunities for smartphone market growth. More people are now accessing internet on their smartphones for various online activities like social media, online shopping, e-commerce, video streaming etc. The growing trend of digitization in businesses offers scope for development of various smartphone apps and technologies that can help improve efficiency. For example, smartphone based payment apps and digital wallets are witnessing higher adoption. Similarly, many industries are utilizing location based services and augmented reality offered by advanced smartphones. This growing trend of digitization and connectivity is expected to boost the demand for high-end smartphones with powerful processors and large screens in the coming years.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as setting up a smartphone manufacturing plant requires substantial investment. However, emerging players can collaborate with existing manufacturers.

Bargaining power of buyers: The bargaining power of buyers is high given the availability of various brands and models in the market. Buyers can easily switch to other brands based on price and features.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as major smartphone manufacturers source parts from different suppliers globally. Switching costs are also low.

Threat of new substitutes: The threat of substitutes is low as smartphones have become an integral part of our daily lives. No product offers similar functionality.

Competitive rivalry: The competitive rivalry is high among existing players given the lucrative size of the market. Players compete on price, innovation, and marketing.

SWOT Analysis

Strengths: Growing adoption of smartphones for applications like social media, online shopping, gaming etc. Rapid technological advances and frequent new launches.

Weaknesses: Market saturation in developed markets. High dependency on a few contract manufacturers exposing business to supply chain risks.

Opportunities: Penetration of 5G technology and edge computing will open new opportunities. Emerging markets in Asia Pacific and Latin America offer scope for growth.

Threats: Trade wars and political instability impact supply chains. Increasing regulations around data privacy and security pose compliance challenges. Intense competition affects pricing and margins.

Key Takeaways

The global smartphone market is expected to witness high growth driven by emerging economies in Asia and Latin America. Rapid urbanization and rising incomes will expand the consumer base in these regions. The global Smartphone Market is estimated to be valued at US$ 1.68 trillion in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2024-2031.

Regional analysis: Asia Pacific dominates the global smartphone market with China and India being the fastest growing markets. Lower average selling prices and strong domestic brands attract price-sensitive consumers in these countries. North America and Western Europe are mature markets but demand for premium models continues.

Key players: Key players operating in the smartphone market are Vidyo, Sightcall, Sinch, GENBAND, Twilio Inc., TokBox, Agro.io, and Xura. Manufacturers focus on product differentiation, strategic partnerships, and fostering an ecosystem of apps and services around their devices.