Report

The Smartphones Market size is estimated at USD 1.57 billion in 2025, and is expected to reach USD 1.92 billion by 2030, at a CAGR of 4.1% during the forecast period (2025-2030).

Factors such as increasing disposable income, the development of telecom infrastructure, the emergence of budget-centric smartphones, and an increasing number of product launches contribute to the smartphone market growth in Asian countries.

- The smartphone industry has steadily developed and grown in market size and models. According to BankMyCell, by January 2024, there would be 6.93 billion mobile phone users worldwide, representing 85.74% of the world's population. The number of people who own a smart and feature phone is 7.41 billion, making up 91.68% of the world's population.

- The key players in the market are involved in strategic partnerships to improve their service offerings and remain competitive. In January 2024, Ncell introduced an enticing collaboration with Samsung for the pre-order launch of the Galaxy S24 series smartphones. As part of that partnership, Ncell is offering its users attractive bundled services and special facilities exclusively. The Ncell LUX number of their choice will be available to the initial 500 customers who pre-book a Samsung Galaxy S24 series smartphone.

- Consumer interest in 5G devices is growing. Thus, chipmakers are pushing manufacturers to include 5G chips in their new smartphone lineup.

- The government is taking appropriate actions on network development and expansion. For instance, in February 2023, the Central Government of India planned to set up 100 laboratories in engineering institutes all over India to develop 5G applications for different sectors.

- According to the budget documents for 2023-24, the Centre also provided INR 5.56 Crore (USD 680.48 Million) to set up a 5G test site. For the financial year 2023, the Centre for Development of Telematics and Research and Development of the Department of Telecommunications will receive INR 550 Crore (USD 673.14 Million), compared to INR 500 Crore (USD 611.95 Million) for the financial year 2022-23.

- The COVID-19 pandemic severely disrupted the smartphone market's balance between supply and demand. Since China is the global manufacturing center for most of these devices and components, and with the nationwide lockdown, the smartphone manufacturing sector has been adversely hit by delayed shipments and weakened development of next-generation products. The country also witnessed being choked off by suppliers, workers, and logistics networks. Moreover, consumer demand for smartphones, especially in the premium segment, declined due to customers' tendency to cut down on luxury spending and focus on essentials due to the pandemic.

- Smartphones are experiencing rapid growth due to various factors, such as lower product costs, improved handset design and functionality, the expansion of global mobile email and browsing services, the emergence of 4G and 5G network technologies, rising competition among mobile carriers, and the standardization and upgrading of operating systems.

- Smartphones played an incredibly important role amid the widespread coronavirus pandemic, and this continued even after the pandemic was over, as almost all government services, health, education, financial services, and so on went online, with smartphones serving as a more accessible and more affordable gateway to access these services.

Smartphones Market Trends

Android Operating System is Expected to Grow Significantly

- According to a StatCounter report released in December 2023, Android remained the world's most popular mobile operating system, with a market share of 70.48%, while iOS accounted for roughly 28.8%.

- Furthermore, many application developers prefer Android OS to develop gaming/entertainment applications, social media applications, mobile utility applications, and lifestyle applications, as it requires the developers to know languages such as C++, Kotlin, and Java, among others. Moreover, Google also offers various development tools, such as Android Jetpack, Firebase, and AndroidSDK, to assist developers in building a user-intuitive interface.

- Additionally, the platform allows users to download applications free of cost. However, the applications are designed to offer in-app purchases and in-app course subscriptions that have generated more revenue in Google Play Stores than in Apple Stores.

- The increasing demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as energy management and smart home products, is anticipated to propel the adoption of 5G smartphones.

- In December 2023, POCO unveiled its new Series named POCO M6 with 5G support, which raises the bar for smartphone imaging and luxurious design. POCO M6 5G delivers a screen size of 17.12 cm (6.74 inches) HD+ display with a Mobile Height of 168 mm, Depth of 8.19 mm, and Weight of 195 g. POCO M6 5G packs with 50MP AI Dual-Camera System and 5MP Front Camera. POCO M6 5G powered by the MediaTek Dimensity 6100+ Octa Core Processor. The smartphone comes with 4GB RAM and 128GB Storage, which is expandable up to 1TB.

Asia-Pacific is Expected to Hold a Significant Market Share

- Asia-Pacific is one of the significant markets for smartphones, primarily owing to the highly developing telecom sector and large customer base. Furthermore, the region is increasingly investing in the mobile network. Countries such as India, Japan, Australia, Singapore, and South Korea are increasingly investing in developing the domestic telecom market, which is also expected to drive the market in the region.

- The demand for smartphones at the entry-level price points is expected to be driven by the increasing demand from the developing countries in the region, such as India and Indonesia, where smartphones are increasingly penetrating rural areas as local governments push for digital and mobile economies. For instance, the Digital India program is a flagship program of the Government of India primarily aimed at transforming the country into a digitally empowered society.

- Various schemes and incentives have been implemented to support India's electronics manufacturing sector. These measures include incentives for significant investments in the electronics value chain, promotion of exports, and action to promote semiconductor production.

- Further, the Government of India has reduced customs duties on parts of smartphones in the Union budget of 2023 to 2024 to boost local production; in the case of the production of smartphones, this will further increase domestic value addition. Mobile phone production in India had increased from 5.8 crore units valued at about INR 18,900 crore in 2014-15 to 31 crore units valued at over INR 2,75,000 crore in the last financial year (2022-23) because of various initiatives of the government, including the Phased Manufacturing program.'

- The key vendors in the smartphone market are focusing on improving their product offerings and introducing new products across this region. For instance, in October 2023, Google launched the Pixel 8 Series, OnePlus launched its first foldable OnePlus Open, Vivo launched the Vivo V29 Series, and Samsung made the Galaxy S23 FE official.

- The rise in the urban population, increased consumer awareness regarding mobile device usage, the surging integration of AR technology, and expanding over-the-top (OTT) platform subscriptions are expected to drive the market's expansion in the coming years.

- In mainland China, rising smartphone adoption and the availability of 4G have resulted in a surge in mobile internet usage that supports the country's movement up the digital society value chain. More than 990 million people use mobile internet services, which is expected to increase by 200 million by 2025.

Smartphones Industry Overview

The smartphone market is highly consolidated, dominated by established players such as Samsung, Huawei, Apple, and Xiaomi. Most players launch new models with small technology changes such as battery power, camera configuration, and processor. Some of the recent developments are:

- January 2024: Apple Inc. announced the opening of a brand-new office in Bengaluru, India. Apple is a major beneficiary of the central government's Production Linked Incentive Scheme. The company reportedly churned out iPhones worth INR 1 lakh crore in 2023, the highest for any smartphone maker in India. Apple�s supply partner, Foxconn, recently got approval to invest USD 1 billion in its newest iPhone factory, which is coming up at Doddaballapura, near Bengaluru's Kempegowda International Airport.

- February 2023: Qualcomm Technologies Inc. and Samsung Electronics partnered to bring the fastest Snapdragon to the Galaxy S23 series globally. Qualcomm Technologies, Inc. announced that the latest flagship Galaxy S23 series is powered by a premium Snapdragon 8 Gen 2 Mobile Platform for Galaxy worldwide. The new Snapdragon 8 Gen 2 design accelerates performance by making it the fastest processor in its class and defining a new standard for connected computers. Both companies are committed to delivering the highest quality consumer experiences on flagship Galaxy devices, so they have launched the S23 series.

Additional Benefits:

• The market estimate (ME) sheet in Excel format


• 3 months of analyst support