Smartphones have become ubiquitous devices that people use every day to stay connected through voice calls, messages, email, and access internet & apps on the go. Advancements in technologies like 5G networks, artificial intelligence capabilities, and foldable displays are driving innovation in smartphones. Smartphones offer entertainment, productivity and convenience through abundant digital content and services available at user's fingertips.
The global Smartphone Market is estimated to be valued at US$ 1.45 Billion in 2024 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 Opportunity:
Increasing customer demand
The market opportunity lies in the increasing customer demand for latest smartphone models and features. With technological advancements, smartphones are becoming more powerful and versatile personal devices. Customers are upgrading their devices more frequently to access better camera capabilities, more storage space, longer battery life and new form factors like foldable screens. Smartphone vendors aim to identify emerging customer preferences and accelerate new product launches that offer enhanced experiences. This growing customer demand for advanced smartphones will drive the market growth over the forecast period. However, the report does not include any details about key players.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as the smartphone market is well established with major brands controlling a major market share. However, new players need to invest significantly in R&D, marketing and manufacturing capacities to compete.
Bargaining power of buyers: The bargaining power of buyers is high given the availability of variety of brands, specifications and price points for buyers to choose from. Buyers can easily switch between brands based on specifications, price and after-sales service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as smartphone brands work with a limited number of suppliers for components like chipsets, memory chips, display panels etc. However, well-established brands negotiate better contracts leveraging their scale of operations and supply commitments.
Threat of new substitutes: The threat of new substitutes is moderate as other smart connected devices like tablets, smartwatches offer some substitute functionality. However, high innovation and continuous upgrades makes smartphones verysticky for consumer needs.
Competitive rivalry: The competitive rivalry is high considering the presence of tech giants like Samsung, Apple, Xiaomi, OPPO, vivo that spend heavily onR&D and marketing for differentiation and gaining market share. Frequent new launches further intensifies competition.
SWOT Analysis
Strengths: Strong brand recognition of leading players, a constant stream of new model launches, rapid technological advancements attract consumers to upgrade regularly.
Weaknesses: Rising costs of components leads to increased prices, high dependence on a few suppliers makes the industry vulnerable to supply chain disruptions.
Opportunities: Penetration of 5G technology and IoT will boost demand, focus shifting towards emerging markets especially Asia-Pacific provides headroom for growth.
Threats: Trade wars and geopolitical tensions pose risks, growing traction of affordable smart devices like smartwatches temper demand for premium smartphones.
Key Takeaways
Global Smartphone Market Size is estimated to be valued at US$ 1.45 Billion in 2024 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030.
The global smartphone market is expected to witness high growth in Asia Pacific region led by countries like China and India. In China, brands like Xiaomi, vivo and OPPO have massive domestic market share and are growing exports as well. In India, smartphone penetration is rising rapidly with affordable models and e-commerce driving adoption in smaller towns.
Regional analysis shows Asia Pacific dominating over 40% of the global market share led by China which is the world's largest smartphone manufacturer as well as market. Other high growth regions include Latin America and Middle East & Africa.
Key players operating in the smartphone market are Vidyo, Sightcall, Sinch, GENBAND, Twilio Inc., TokBox, Agro.io, and Xura. Samsung and Apple have largest global market share while Xiaomi leads the Chinese market. In India, companies like Xiaomi, Samsung, vivo and Realme have significant presence addressing various price points.
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