PUBLISHER: Koncept Analytics | PRODUCT CODE: 1350685
PUBLISHER: Koncept Analytics | PRODUCT CODE: 1350685
The 5G Smartphone is a mobile phone that primarily supports the fifth standard network, with advanced features and capabilities that go beyond basic functions like texting and calling. Consumer interest in 5G devices is rising, thus chipmakers are pushing businesses to include 5G processors in their new smartphone lineup.
The rise in urban population, increased consumer awareness regarding rising mobile device usage, surging integration of AR technology, and expanding over-the-top (OTT) platform subscriptions would drive market expansion in the coming years. The global 5G Smartphone market is expected to reach US$162.90 billion in 2023, witnessing growth at a CAGR of 124.89%, during the forecasted period.
According to this report, the global 5G Smartphone market is divided into four regions, namely Asia Pacific, North America, Europe and Latin America, Middle East & Africa. The countries covered in Asia Pacific region include China, India and Rest of Asia Pacific, while North America includes the US, Canada, and Mexico. Moreover, UK, Germany, France, Spain, Italy and Rest of Europe are included in the European region.
Asia Pacific dominated the market with largest share of the global 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 maximum share in the market due to the accelerating economic growth, and digital technologies. Further, in North America, Mexico is expected to be the fastest growing region in the forecasted period.
Top Impacting Factors:
Smartphones are increasingly becoming the source of media and entertainment. Growing number of mobile devices like smartphones and tablets have promoted effective communication between patients living in remote areas and healthcare providers. Increasing penetration of mobile devices has led to the adoption of 5G smartphones as 5G is now a standard feature in premium smartphones, especially in the major regions like the U.S., China, Japan and South Korea. Hence, growing usage of mobile devices has encouraged the global 5G smartphone market growth.
Majority of the 5G smartphones come with big batteries owing to the increased power consumption of early 5G modems and connectivity. A 5G capable smartphone will need about 5 times more processing power, consume 2.5 times more power and see board sizes increase by around 1.3 times. This more-than-expected power consumption leads to a noticeable increased OpEx for the operators and ultimately an increased subscription cost which may slow down the widespread deployment of 5G. Therefore, massive power consumption may hamper the overall market growth.
An Internet of Things (IoT) platform is the support software that connects edge hardware, access points and data networks to other parts of the value chain which are generally the end-user applications. Rising demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as smart home products and energy management is anticipated to propel the adoption of 5G smartphones because these smartphones have better features like greater bandwidth, enhanced battery performance, faster processor, etc. Furthermore, with the growth of both residential and industrial Internet of Things (IoT) devices, smartphones play the role of a personalized authentication device for enhanced security purposes. Thus, the rising trend of connected IoT devices is estimated to fuel the growth of the global 5G smartphone market in coming years.
The COVID-19 Analysis:
The outbreak of the COVID-19 pandemic has notably hampered the overall electronics manufacturing industry across key countries, such as China, Japan, Taiwan and several other Asian countries. The pandemic has also affected the exports and imports of electronic and other products globally, owing to the shutdown of borders of key countries. However, the growing number of COVID-19 cases across the globe increased the usage of smartphones as a result of sedentary lifestyle during lockdown and it is expected to boost the 5G smartphone market growth.
Analysis of Key Players:
The global 5G smartphone market is highly consolidated, with a few number of large scale manufacturers accounting for a major revenue share. The key players in the global 5G Smartphone market are:
Some of the strategies among key players in the market for 5G smartphones are mergers, acquisitions, and collaborations. For instance, in 2022, Lenovo Group Limited and PCCW Limited entered into definitive agreements to establish a strategic partnership to create a technology solutions business in the Asia Pacific region. And, in 2022, Motorola Solutions launched WAVE PTX, an instant communication service via broadband subscription, with nationwide coverage, allowing companies to connect their different work teams instantaneously and reliably in order to keep operations up and running, independent from network technology.