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The smartphone market size is forecast to increase by USD 77.05 billion at a CAGR of 3.43% between 2023 and 2028. The global market is witnessing significant growth, driven by the increasing adoption of advanced technologies such as Artificial Intelligence (AI) and sensor fusion technology. AI integration in smartphones is revolutionizing user experience through features like voice recognition, facial recognition, and predictive text. Sensor fusion technology, which combines data from multiple sensors, enhances device functionality and improves battery life. However, ongoing trade wars are posing challenges to market growth by disrupting supply chains and increasing production costs. These factors, along with the continuous evolution of technology and consumer preferences, are shaping the future of the market.
The global market is experiencing significant growth due to improved telecom infrastructure and the availability of affordable handsets. With the increasing adoption of 5G gadgets, chipmakers are focusing on developing 5G chips to power mobile handsets. The mobile phone user base continues to expand, fueled by the widespread availability of internet-based facilities and the digital functions offered by smartphones. Android and Windows phone operating systems dominate the market, with third-party originators gaining traction. Budget-centric product launches catering to feature phones are also driving growth. The integration of artificial intelligence, 4G and 5G Technology network technologies, and advanced hardware and software capabilities have expanded the functionality of smartphones, enabling users to enjoy web browsing, music, video, gaming, and camera capability on the go. Governmental assistance and ongoing investment in telecom infrastructure are expected to further boost market growth.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The android segment is estimated to witness significant growth during the forecast period. The mobile communications market is dominated by various mobile operating systems, with Android, offered by Alphabet Inc. (Google), being a leading choice for consumers worldwide. The Android OS provides access to over 2.5 million apps via the Google Play Store, enabling users to download digital functions for multimedia functionality, voice calls, text messaging, and Internet-based facilities. Google's OS also offers additional features such as smart reply for messaging apps, focus mode options, and Wi-Fi sharing via QR codes. Moreover, Google's search engine, Maps, YouTube, and other web services are accessible to users free of cost, enhancing the overall user experience.
Moreover, the popularity of Android OS can be attributed to its extensive feature set. Telecom infrastructure continues to evolve, with budget-centric product launches incorporating 5G technology, artificial intelligence, and human-computer interaction. Mobile handsets are increasingly being integrated into various sectors, including automobiles, fleet management operations, healthcare devices, smart metering, personnel traffic, and infrastructure security systems. Component shortages and semiconductor emissions are challenges faced by mobile phone manufacturers, necessitating the development of low-power consumption and fast charging capabilities. Virtual and augmented reality technologies are also gaining traction, further expanding the technology market's potential.
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The android segment accounted for USD 199.72 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The digital information age has significantly transformed the mobile phone industry, with large organizations investing heavily in consumer electronics, particularly in the development and production of smartphones. These advanced electronic gadgets offer superior hardware and software capabilities, including face recognition and fingerprint sensors, dual-camera systems, and high-speed network access. The telecom industry plays a crucial role in providing high-speed connectivity for web browsing, music, video, gaming, and camera capability. Fake sensors and low-quality components are a concern for some in the market, leading to increased scrutiny and governmental assistance in ensuring authenticity. OEMs and retailers have responded by establishing their own stores and partnering with e-commerce and m-commerce platforms for online shopping.
Furthermore, the premium class phones, with their multimedia features and cloud storage capabilities, have become popular for content subscription and entertainment. Electronic devices such as gaming consoles, laptops, and tablets continue to face competition from these versatile smartphones. Picture processing and audio capabilities are also significant factors in the market's growth. Overall, the mobile phone industry's evolution is driven by the consumer's disposable cash and the desire for advanced networking and entertainment solutions.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing adoption of AI in smartphones is the key driver of the market. The market is experiencing significant growth due to improved telecom infrastructure, making high-speed data connectivity more accessible to mobile phone users. This has led to an increased demand for 5G gadgets, with chipmakers like Qualcomm introducing 5G chips to power next-generation products. Engineering institutes and laboratories are collaborating to develop advanced applications for 5G networks, including AR technology, social media, utility applications, and lifestyle apps. Budget documents indicate that affordable handsets continue to dominate the market, with operating systems like Android and iOS leading the charge. Application developers are focusing on in-app purchases and subscriptions to monetize their offerings, while next-generation products are integrating IoT applications for connected computers.
Furthermore, the premium segment is prioritizing handset design, functionality, and hardware capabilities, such as high-speed processors like Snapdragon and advanced camera configurations. Logistics networks are streamlining the distribution of smartphones, with customs duties and over-the-top platform subscriptions impacting pricing. The telecom sector is investing heavily in R&D to offer innovative features and enhance user experience. As AI continues to evolve, it is being integrated into smartphones to offer advanced functionality, including facial recognition, emotion recognition, and device management. C++ and Java are popular programming languages for developing AI applications, with in-app courses and subscriptions offering users continuous learning opportunities. Battery power remains a key concern for consumers, with manufacturers focusing on improving efficiency and extending battery life.
Emergence of sensor fusion technology is the upcoming trend in the market. The market is witnessing significant advancements with the advent of Improved Telecom Infrastructure and the availability of Affordable Handsets. The increase in Mobile Phone Users worldwide is driving the demand for 5G Gadgets, which are powered by advanced 5G Chips. Chipmakers and laboratories are engineering next-generation products with 4G Network Technologies and 5G Network Technologies to cater to the evolving needs of consumers. Handset design is a crucial aspect, focusing on Functionality, Operating systems like Android Operating System and iOS, and Application developers creating Social media applications, Mobile utility applications, and Lifestyle applications. C++ and Java are popular programming languages used for developing these applications, with In-app purchases and In-app course subscriptions as monetization strategies.
Furthermore, high-speed data connectivity is essential, with Integrated IoT applications becoming increasingly popular. The Telecom sector is experiencing a transformation, with Budget documents outlining the importance of Customs duties and AR technology in the development of Over-the-top platform subscriptions. Battery power and Camera configuration are key considerations for consumers, with Processors like Snapdragon leading the market. Connected computers and Hardware capabilities are also essential features, making Sensor fusion technology a critical component. Sensor fusion enables smartphones to combine data from various sensors, such as gyroscopes, compasses, and accelerometers, to provide accurate results for elevation, linear translation, gravity, direction, and rotation. companies are continuously developing algorithm solutions for efficient sensor interoperability and data collection. Bosch Sensortec GmbH offers FusionLib, a complete 9-axis fusion solution, to facilitate this technology's integration.
Ongoing trade wars affecting smartphone sales is a key challenge affecting the market growth. The market is witnessing substantial growth due to improved telecom infrastructure, which enables high-speed data connectivity. This, in turn, is driving the demand for affordable handsets with advanced features such as 5G chips and 5G gadgets. Mobile phone users are increasingly seeking next-generation products with integrated IoT applications and AR technology. Chipmakers and laboratories are engineering institutes are investing heavily in research and development to bring 5G network technologies to the mass market. Budget documents reveal that the premium segment of the market is expected to grow significantly, with a focus on handset design, functionality, and operating systems such as Android and iOS.
Furthermore, application developers are creating innovative mobile utility applications, lifestyle applications, social media applications, and over-the-top platform subscriptions to cater to the diverse needs of consumers. However, The market faces challenges due to government interventions, such as customs duties and trade restrictions. For instance, the US-China trade war has led to tariffs on electronic products, increasing their average selling price and the cost of manufacturing components like processors, such as Snapdragon. The logistics networks are also affected, leading to delays in the delivery of 4G and 5G network technologies. Despite these challenges, the telecom sector remains optimistic about the future, with a focus on battery power, camera configuration, and hardware capabilities.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc: The company offers pixel 6A smart phone which is designed with gorilla glass 3 display screen and have 6.1 inch screen display.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing significant growth due to improved telecom infrastructure and the availability of affordable handsets. With the emergence of 5G gadgets and the integration of 5G chips, mobile phone users are increasingly opting for next-generation products. Chipmakers, laboratories, and engineering institutes are investing heavily in research and development to create advanced handsets with superior functionality and operating systems like Android and iOS. Application developers are focusing on creating innovative applications for social media, utility, lifestyle, and AR technology, driving the demand for high-speed data connectivity. Budget documents indicate that the premium segment of the market will continue to dominate, with a focus on handset design, battery power, camera configuration, and processor capabilities.
Moreover, logistics networks are also crucial in ensuring the timely delivery of these next-generation products. The telecom sector is facing challenges such as customs duties and over-the-top platform subscriptions, but the potential for integrated IoT applications and connected computers is vast. C++ and Java are popular programming languages for developing mobile applications, with in-app purchases and in-app course subscriptions providing additional revenue streams. Overall, the market is poised for growth, with 4G network technologies giving way to 5G network technologies and the continued evolution of hardware capabilities.
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Market Scope |
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Report Coverage |
Details |
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Page number |
197 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.43% |
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Market growth 2024-2028 |
USD 77.05 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.31 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 51% |
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Key countries |
China, India, Germany, US, and Brazil |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Acer Inc., Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., Guangdong OPPO Mobile Telecommunications Corp. Ltd., Honor Device Co. Ltd., HTC Corp., Huawei Technologies Co. Ltd., Kyocera Corp., Lava International Ltd., Lenovo Group Ltd., LG Corp., Micromax Informatics Ltd., Nokia Corp., Samsung Electronics Co. Ltd., Shenzhen Transsion Holdings Co. Ltd, Sony Group Corp., TCL Electronics Holdings Ltd., Xiaomi Communications Co. Ltd., and ZTE Corp. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by Price Range
8 Market Segmentation by Screen Size
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
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