The Global Smartphone Market: Where Is The Demand?

Introduction

The smartphone market is one of the most dynamic and competitive markets in the world. In the past decade, we have seen a major shift in the dynamics of the market, with new players emerging and old players exiting. The smartphone market is now dominated by a few large players, with the majority of the market share being held by Apple and Samsung. 

The global smartphone market is expected to grow at a CAGR of 2.3% during the period 2019-2024. The Asia-Pacific region is expected to be the largest market for smartphones, with a market share of over 50%. North America and Europe are also expected to be significant markets for smartphone manufacturers. 

In this blog post, we will take a look at the global smartphone market and try to understand where the demand is coming from.

The Context

The smartphone market has changed drastically over the past few years. From a market mainly dominated by Apple and Samsung, we now see a number of different players competing for market share. Since the launch of the iPhone in 2007, smartphones have become increasingly more powerful and feature packed, allowing for more complex and robust applications. Moreover, the cost of smartphone hardware and software has decreased, allowing for the proliferation of devices. This has resulted in an influx of new players in the market. In addition to traditional smartphone makers, there are now a host of Chinese manufacturers such as Huawei, Xiaomi and Oppo, who have taken a sizable chunk of the market share. 

The Present Scenario

As of 2019, the global smartphone market is estimated to be approximately $50 billion, with Asia-Pacific accounting for over 50% of the market share. North America and Europe are also big players in the market, accounting for over 20% of the market share each. Apple and Samsung continue to hold the majority of the market share, with the two companies combining for a market share of over 40%. The next largest player is Huawei, with a market share of about 13%. After these three companies, the market share drops off significantly, with other brands such as Xiaomi, Oppo and Vivo commanding a combined market share of about 8%. In terms of growth, the market is expected to grow at a CAGR of 2.3% during the period 2019-2024, with Asia-Pacific and North America being the two key driving regions. 

The Future of the Smartphone Market

Going forward, the smartphone market is expected to continue to grow, albeit at a slower rate. Despite the overall growth, the market share of Apple and Samsung is expected to decline, as newer players such as Huawei and Xiaomi continue to gain ground. The way people interact with their smartphones is also expected to change. Augmented Reality (AR) and Virtual Reality (VR) will become more prominent, allowing users to have richer and more engaging experiences. There is also a growing trend towards 5G technology, which is expected to improve the speed and stability of wireless networks. 

Conclusion

The global smartphone market is one of the most dynamic and competitive markets in the world. Over the past few years, we have seen a major shift in the dynamics of the market, with new players emerging and old players exiting. The smartphone market is now dominated by a few large players, with the majority of the market share being held by Apple and Samsung. The market is expected to grow at a CAGR of 2.3% during the period 2019-2024, with Asia-Pacific and North America being the two key driving regions. Going forward, the market is expected to continue to grow, albeit at a slower rate, while technologies such as AR, VR and 5G become more prevalent.