Smartphones Market Poised For Significant Growth, Projected To Reach US$ 982.8 Bn By 2031

The global smartphones market is set to experience robust growth over the next decade, with a projected increase from US$ 578.8 Bn in 2024 to US$ 982.8 Bn by 2031. Expanding at a compound annual growth rate (CAGR) of 6.8%, the market’s growth is driven by advancements in mobile technology, growing e-commerce and m-commerce trends, and rising consumer demand for more affordable and feature-rich smartphones.

Key Insights:

Market Size in 2024: US$ 578.8 Bn
Forecasted Market Value in 2031: US$ 982.8 Bn
Growth Rate (2024-2031): 6.8% CAGR
Market Share of Top 5 Smartphone Manufacturers: ~75%

The demand for smartphones is propelled by factors such as increasing internet penetration, more extensive social media subscriptions, and intense marketing efforts by smartphone vendors. These trends, combined with a shift in consumer spending towards digital entertainment, media, and communication, are expected to fuel continued market growth.

Post-Pandemic Recovery and Future Trends:

While the COVID-19 pandemic initially led to a surge in demand for budget-friendly smartphones, the recovery is set to bring a rise in consumer spending. As disposable income increases, there will be a greater focus on premium consumer electronics, including smartphones, tablets, and gaming consoles. The growing adoption of Artificial Intelligence (AI) in smartphones is also expected to enhance performance, making mobile devices more powerful and efficient.

Regional Insights:

North America: North America remains one of the leading markets for smartphones, bolstered by advanced telecom infrastructure, rapid 5G adoption, and the presence of major smartphone manufacturers. The U.S. market, in particular, is expected to grow at a CAGR of 6.6% from 2024 to 2031. Apple’s dominance in the region, holding over 58% of the U.S. smartphone revenue share in 2020, continues to be a significant driver.
Asia Pacific: Asia Pacific, led by China and India, is also a key growth region. India, in particular, is set to see impressive growth, with the smartphone market expanding at a CAGR of approximately 9.5%. The rapid development of telecom infrastructure, an increasing demand for affordable smartphones, and a burgeoning middle class are major contributors to the market’s growth in India.

Key Drivers of Market Growth:

5G Technology: The increasing rollout of 5G services is a critical factor driving global smartphone sales. As more developing countries adopt 4G and 5G services, smartphone manufacturers are focusing on launching 5G-enabled devices to cater to the growing demand. This is also expected to drive down the prices of 4G smartphones, stimulating further sales.
Technological Advancements: The integration of AI technology into smartphones has significantly enhanced their capabilities, making them more efficient and feature-rich. With AI chips being incorporated into smartphones to reduce power consumption while increasing performance, consumers are increasingly attracted to these advanced devices.
E-Commerce and Social Media: The rise of e-commerce and m-commerce, coupled with increasing social media engagement, has further fueled smartphone demand, especially among younger, tech-savvy consumers. This trend is expected to continue growing as more people use smartphones for online shopping, communication, and entertainment.

Market Outlook and Future Projections:

The global smartphone market is on track to achieve substantial growth, with sales volume increasing significantly in both developed and developing regions. North America and Asia Pacific are anticipated to lead the growth, with India being a key contributor to the market’s expansion.

The market is projected to grow 2.5X in the next decade in countries like India, with a strong focus on low- to medium-range smartphones catering to a large segment of consumers. Meanwhile, the U.S. will continue to be a significant player due to the dominance of premium brands like Apple and the rapid adoption of new mobile technologies such as 5G.

Conclusion:

With the global smartphone market set to grow at a CAGR of 6.8% over the next decade, the industry is poised for significant expansion driven by advancements in mobile technology, increasing consumer demand, and regional shifts in mobile usage. As manufacturers embrace innovations like 5G and AI, and markets like India and North America continue to grow, the global smartphone market is expected to reach a value of US$ 982.8 Bn by 2031.