Global Smartphone Market to Grow at a CAGR of 6.04% During the Period 2017-2021

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The global smartphone market to grow at a CAGR of 6.04% during the period 2017-2021. The latest trend gaining momentum in the market is Upcoming possibilities with 5G. While the launch of 5G is 3-4 years away, 5G is being viewed by smartphone vendors as the technology that will get more people to use the Internet for daily tasks. 5G will be capable of delivering up to 100 times the speed customers are currently getting with 4G LTE, which is up to 1 Gbps in an ideal situation. It will also be capable of accommodating many more devices that are expected to connect to networks due to the expansion of the Internet of things. Accordingly, smartphone manufacturers have started conducting research on the network technology and are preparing phones for 2020, when 5G is expected to debut

According to the report, one of the major drivers for this market is Rising income levels and increasing consumer spending in emerging markets. The smartphone market is facing saturation in developed countries. Thus, the growth in the smartphone market will be driven by emerging countries, such as India, Indonesia, the Philippines, and Vietnam. These countries are experiencing an economic boom, which is leading to a rise in the per capita income. Consumers' income levels are increasing, and smartphones are becoming more affordable because of the entry and penetration of low-cost Chinese alternatives, such as OPPO, Vivo, and Xiaomi. These factors in emerging markets are expected to drive the growth of the smartphone market. Vendors are expected to see an increase in shipments in these countries.

Further, the report states that one of the major factors hindering the growth of this market is developed countries reaching market saturation. The smartphone market has been witnessing a slowdown in the recent years. Developed countries such as the US and the UK, which were the biggest markets for smartphones, are now coming to a steady halt as the pool of first-time buyers is shrinking rapidly, and sales are now primarily coming from phone upgrades. With only incremental improvements in each new generation of phones, it is becoming difficult to convince smartphone owners to shift to new models.