Smartphone Market

Smartphone Market Outlook (2024 to 2034)

The smartphone market is estimated to be valued at US$ 802.1 billion in 2024. The market is expected to expand at a CAGR of 7.30% through 2034. Anticipated growth is set to propel the market to an impressive size of US$ 1,615.6 billion by 2034.

The growing connectivity and mobile internet penetration are significant factors driving the growth of this market. The widespread adoption of smartphones in the general population around the world has opened new doors for smartphone manufacturers to capitalize on a vast and continuously expanding market.

Various reasons can be attributed to this exponential expansion of the smartphone market in the international marketplace. The integration of smartphones into various aspects of work and lifestyle is considered one of the main reasons for this. Individuals are increasingly relying on smartphones for their day-to-day chores, right from calling to making payments and buying essential items.

Ongoing innovations in the smartphone industry are also one of the prominent reasons for the growth of this market. The emergence of 5G technology, enabling faster internet speed and enhanced connectivity, is attracting a plethora of individuals, especially the younger demographic to the market. Features like powerful processors, improved cameras, and vibrant screens have garnered the attention of individuals worldwide.

The smartphone market generated an estimated revenue of US$ 308.1 billion in 2019. In five years, the market grew at a pace of 21.08% CAGR and added a staggering revenue of US$ 494 billion.

Report Attributes	Details
Estimated Market Value (2024E)	US$ 802.1 billion
Forecasted Market Value (2034F)	US$ 1,615.6 billion
Global Market Growth Rate (2024 to 2034)	7.30% CAGR
Online/e-Commerce Segment Growth Rate (2024 to 2034)	63.10%
iOS Smartphones Segment Growth Rate (2024 to 2034)	31.40%
North America Market Share (2024)	25.80%
East Asia Market Share (2024)	30.70%
Key Companies Profiled	Apple Samsung Google Sony Huawei Motorola Nokia Xiaomi Vivo Oppo LG HTC OnePlus Asus

What is Driving the Global Surge in Demand for Smartphones?

“Mobile Internet Penetration and Integration of Smartphones in Daily Life”

The rise in the accessibility of mobile internet, even in the developing and underdeveloped parts of the world, is contributing to the market’s growth. Telecommunications infrastructure has improved drastically in emerging countries, leading to affordable mobile data plans. This has drastically changed the way one used to access information, connect with others, and engage with the digital world.

The growing reliance on smartphones for daily chores is also positively affecting the market. Smartphones have evolved beyond mere communication devices and have become one of the most essential components of people’s lives. Their demand in the international market is attributed to their ability to make calls, find directions, monitor physical activities, provide on-the-go-entertainment, etc. These functionalities have made smartphones an inseparable part of individuals’ lives.

“Advanced Features and Functionalities and Technological Innovations to Amplify Market Growth”

The consumer demand for smartphones is also driven by the advanced features and functionalities introduced by key players in the market. Smartphone users across the world seek sophisticated features that not only enhance the overall user experience but also are durable. Companies in the market bring high-quality cameras for photography and video recording, advanced sensors for health tracking, and immersive displays to cater to these demands.

Besides this, continuous technological innovations are also driving the market growth for smartphones. Improved processors, advancements in camera technology, and enhanced screen resolutions have all contributed to the growing popularity of smartphones in the general population. The introduction of the 5G network enables faster internet speeds and connectivity, which has also been one of the prominent factors in the widespread acceptance of smartphones.

Which Factors Present Challenges to the Expansion of the Smartphone Market?

“Privacy and Security Concerns, Cost Constraints, and Competition from Other Devices to Slow Down Market Growth”

One of the major concerns slowing down the smartphone market is the privacy and security of users and their data. In the past few years, numerous cyberattacks and identity thefts have highlighted the vulnerabilities associated with smartphone usage, leading to heightened apprehensions among consumers. Besides this, the cost of premium smartphones is also higher, leading to a slowdown in market growth in regions where per capita income is low. This also faces rigorous competition from its counterparts, such as tablets, iPads, and other electronic devices. 

Country-wise Insights

The North American smartphone market is poised for exceptional growth, projecting a modest CAGR of 7.5% through 2034. The surge is primarily attributed to the increasing demand for smartphones in key countries, notably the United States and Mexico. In 2024, the United States is estimated to dominate the industry with an estimated market share of 69.1%. Meanwhile, the East Asian smartphone market is anticipated to exhibit substantial progress, aiming for an 8.20% CAGR through 2034. In this region, China emerges as the key player in the industry, commanding a significant share of 63.50% in 2024.

Why is the United States Leading the Smartphone Market in the North American Region?

“High Disposable Income Early Adoption of Technology in the Country to Augment Growth”

Attribute	Details
Market Value in 2024	US$ 206.9 billion
CAGR (2024 to 2034)	7.5%

The North American market stood at US$ 206.9 billion in 2024, acquiring a revenue share of 25.8%, and is further projected to expand at a CAGR of 7.5% through 2034. The United States smartphone industry is estimated to be worth US$ 143 billion in 2024 and is projected to grow at a CAGR of 7.6% through 2034.

The United States is blessed with several drivers, making it the leading country in the smartphone market. The country has one of the most advanced manufacturing hubs for smartphones and electronic devices. The presence of companies, such as Apple, Google, and Microsoft, in the Silicon Valley of America, facilitates easy access to smartphones at affordable prices. The disposable income of people residing in the country also plays a crucial role in the expansion of the market in the country. All these factors have collectively positioned the United States as one of the leading countries in this market.

Why is China Commanding the East Asian Smartphone Market?

“Local Brands' Success and eCommerce Boom to Help Market Expansion”

Attribute	Details
Market Value in 2024	US$ 156.4 billion
CAGR (2024 to 2034)	8.40%

The smartphone market in China is estimated to be worth US$ 156.4 billion in 2024, garnering a share of 63.5% in the East Asian region. The sales of smartphone services are likely to record a CAGR of 8.40% through 2034.

China is home to one of the largest populations in the world. The sheer enormity of the population is enough to make it one of the leading markets in the East Asian region. Besides this, the country is blessed with a multitude of local brands, such as Xiaomi, Oppo, Vivo, Huawei, etc. These brands have a loyal consumer base and are some of the largest companies in the global smartphone market. Also, the e-commerce boom in the country, enabling the online sale of smartphones, can be considered one of the major drivers for the remarkable growth of this market in China.

Category-wise Insights

Based on the sales channel, the online sales segment is estimated to hold a 63.10% market share in 2024. Simultaneously, the physical retail stores segment is anticipated to secure a 36.9% share, contributing significantly to the market's resource diversity and stability. Based on operating systems, the android segment marks its dominance in the smartphone industry, with a share of 25.70% in 2024.

Why is the General Population Relying on Online Platforms for Buying Smartphones?

“Convenience, Variety, and Online Offers Making Online Platforms a Perfect Choice”

Attribute	Details
Market Share in 2024	63.10%

The eCommerce sector, in the last few years, has grown at an outstanding rate, not just in developed economies but in developing and underdeveloped countries as well. This boom has also benefited the smartphone market. Consumers prefer online platforms so that they can browse through millions of options and buy phones according to their preferences. Consumers are also opting for these platforms as they introduce offers and discounts regularly.

Apart from this, the convenience offered by online platforms is considered to be one of the main reasons people choose them over retail shops and stores. Consumers can also get online reviews and ratings on these platforms, making it easier for them to make a choice. People are also buying phones from these channels so that, with just a few clicks, they can get the smartphone delivered to their doorsteps.

Competitive Landscape

The global smartphone industry is filled with several international brands, such as Apple, Samsung, Nokia, Oppo, Vivo, Xiaomi, etc. These companies introduce numerous phones, in all price ranges and functionalities, to cater to the demands of a diverse consumer base. Continuous research and innovations drive market growth, and brands have to constantly keep up with new trends and updates to maintain their dominance. Small companies in the market, too, have tremendous scope for growth. These companies are usually the first ones to bring new features and updates to this ever-growing market.

Recent Developments

• Recently, OnePlus launched the OnePlus 12 in China on December 4 during its 10-year anniversary celebration event. The phone succeeded the OnePlus 11 5G, launched in February with notable specifications.
• Apple unveiled the iPhone 15 Pro and iPhone 15 Pro Max, featuring a robust and lightweight titanium design with contoured edges, an upgraded Action button, powerful camera enhancements, and the A17 Pro for next-level performance and mobile gaming.
• Samsung expanded its F series smartphone range in India with the launch of the Galaxy F34 5G. The company unveiled the device on August 7, offering consumers new features and capabilities.

Smartphones Industry Segmentation

• By Operating System:

  • Android Smartphones
  • iOS Smartphones
  • Others

• By Price Range:

  • Low-range Smartphones (Below $200)
  • Mid-range Smartphones ($200-$500)
  • Premium Smartphones (Above $500)

• By Sales Channel:

  • Online/e-Commerce
  • Physical Retail Stores (Offline)

• By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa (MEA)