Global 5G smartphone market to reach $4 billion by 2027, report
The global 5G smartphone market in 2021 was valued at $32.21 billion. The market is expected to reach $4167.07 billion by 2027 according to a report by Research and Markets.
The 5G Smartphone is a mobile phone with advance features and functionality beyond traditional functionalities such as sending text messages and making calls and primarily support the fifth standard network. The consumers interest in 5G devices has been growing, therefore chipmakers are also pushing brands to use 5G chips in their new line-up of smartphones.
Due to the rise in urban population, growth in consumer awareness about the increasing usage of mobile devices, surging integration of AR technology, expanding over-the-top (OTT) platform subscriptions would propel the market growth in the forthcoming years. The market is expected to grow at a CAGR of 124.90 % during the forecast period of 2022-2027.
The report provides the bifurcation of the market into two segments based on the component: offline and online. In 2021, offline held a major share of more than 61% in the market. The common offline sales channels include variety of outlets, including retailer outlets, hypermarkets, mobile stores, and brand stores. A large number of consumers prefer to buy electronics and consumer goods from local authorized brand stores as these stores enable consumers to have the touch-and-feel experience of a phone before purchase.
The report further provided the analysis based on the shipments: The shipment of 5G smartphones is predicted to increase during the forecast period owing to the surging demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as smart home products and growing integration of Augmented Reality (AR) & Virtual Reality (VR) technology.
The report provides insight into the 5G Smartphone market based on the regions, namely Asia Pacific, North America, Europe and Latin America, Middle East & Africa. Asia Pacific held the major share of more than 65% in the market, owing to the increasing middle class, along with higher levels of disposable income, has boosted internet access and smartphone ownership.
Many major countries such as India and Vietnam would switch on their 5G networks in the near future, which would contribute to the total 5G smartphone count. In the Asia Pacific region, China held almost 58% share in the market owing to the accelerating economic growth, and digital technologies. In North America, Mexico is expected to be the fastest growing region in the forecasted period.