5G Smartphone Market Size, Share & Trends Analysis Report By Operating System (IOS, Android, Windows), By Sales Channel (Online, Offline), By Region (APAC, MEA, Europe, North America), And Segment Forecasts, 2020 - 2027

Report Overview

The global 5G smartphone market size was valued at USD 12.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 129.6% from 2020 to 2027. It attained a market volume of 18.7 billion units in 2019 and is expected to reach a volume of 14,942.6 billion units by 2027. Constant technological advancements and growing demand for ultra-high bandwidth, ultra-low latency, and massive connectivity are expected to provide growth opportunities to the market. Rising demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as smart home products, and energy management, is estimated to propel the adoption of 5G smartphones over the forecast period. 5G smartphones are characterized based on aggressive pricing, increased data transfer rate, technology and designs, and innovative features such as compatibility with smart devices. These factors are also responsible for the growth of the market.

The fifth-generation smartphones allow the users to access the high-speed network and enjoy an enhanced experience in terms of data transfer speed. Moreover, high bandwidth with ultra-low latency offered by the 5G smartphones would improve the user experience while using 5G services for several use cases, such as ultra-high definition (UHD) videos streaming and seamless video calling, augmented reality, and Virtual Reality (VR) gaming among others. Besides, the availability of low-cost 5G smartphones with low-power consumption and fast charging capability is expected to aid in the increasing demand across the globe over the forecast period.

Furthermore, the growing integration of Augmented Reality (AR) & Virtual Reality (VR) technology across different verticals, such as automotive and retail, is also expected to fuel the product demand over the forecast period. The rising usage of enhanced graphical electronic devices to improve consumer experience is further anticipated to boost the growth of 5G Smartphone usage by 2027. Increasing adoption of technology, such as human system interaction to enhance the consumer experience, also favors the development of the market. Robust deployment of 5G networks, services, and infrastructure upgradation across the globe to deliver enhanced services to their customers are also estimated to propel the demand in the coming years.

Furthermore, the emerging trend of smartphone-connected automobiles, healthcare devices, and fleet management operations is also anticipated to drive the fifth-generation smartphone demand over the forecast period. Smartphone connectivity also finds its application in smart metering, personnel traffic, and infrastructure security systems connectivity, among others. Moreover, with the evolution of fifth-generation smartphones, various organizations around the world are focusing on integrating their infrastructure and devices with the new upcoming 5G integrated smart technologies. Also, several companies are integrating their existing on-premise application operations to cloud networks, which can be seamlessly accessed with 5G smartphones over a centralized network across the globe, thus boosting product adoption.

On the other hand, the outbreak of the COVID-19 pandemic has notably hampered the overall electronics manufacturing industry across key countries, such as China, Taiwan, Japan, South Korea, 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. For instance, according to the data released by the Chinese customs department, China’s exports have shown a rapid decline of nearly 17% in the first two months of 2020 as compared to the last year. However, China is coming closer to its recovery phase, which will reduce the impact of this pandemic on the growth of China’s market.

Operating System Insights

In terms of value, the android segment dominated the market with a revenue share of 94.4% in 2019 and is expected to continue its dominance over the forecast period. This is credited to its affordable costs, wide range of application compatibility, and ease of use. Consumers primarily prefer devices that are easy to understand and light on the pocket. Moreover, the latest Android-based devices can multi-task and are equipped with sensors and fingerprint security benefits, which act as a competitive edge over other operating systems. Android stores with a wide range of free applications for various purposes such as WhatsApp for chatting, and Netflix for video streaming, among others, also fuel the demand for android 5G smartphones.

The iOS is expected to witness significant growth over the forecast period owing to the popularity and brand value of Apple products. The increased demand for luxury smartphones is further boosting the growth of iOS devices. In addition, the iOS platform is highly preferred among high-end gamers and game developers, owing to its supporting features, such as processor speed and enhanced visual experience. Moreover, iOS provides an effective user experience and security to customers by delivering curated content.

Sales Channel Insights

In terms of volume, the offline sales channel segment dominated the market with a share of 63.3% in 2019 and is expected to grow considerably over the forecast period. The high share is attributable to the availability of a huge number and 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. In that way, consumers can understand various sections of the device, and thus make a clear decision.

The online sales channel is projected to expand at the fastest growth rate of 155% from 2020 to 2027 and is expected to attain a market volume of nearly 6,945 billion units by 2027. An E-commerce platform provides flexibility to consumers to shop anywhere, anytime. Also, it offers a wide range of brands with attractive prices. Therefore, online stores have been attracting consumers across the globe by providing door-step delivery and exchange & return facilities. Major e-retailers in this industry include Amazon, Flipkart, and Apple Store, among others.

Regional Insights

In terms of revenue, the Asia Pacific regional market is estimated to account for the largest revenue share of more than 40% in 2020. Moreover, APAC regional market is expected to register a CAGR of over 110% from 2020 to 2027. The growth can be attributed to the presence of leading smartphone manufacturers, such as Huawei Technologies Co. Ltd., Samsung Electronics Co., Ltd, and BBK Electronics Corporation, in the region. In addition, increasing investments by key telecom operators, such as China Telecom, KT Corporation, NTT Docomo, China Mobile, and Reliance Jio, in deploying 5G network infrastructure are estimated to boost the adoption of 5G-enabled smartphones in the region.

In terms of volume sales, Europe is anticipated to grow at the fastest CAGR of 153.7% from 2020 to 2027. This high growth can be attributed to the rising adoption of the 5G network in the region, which generates the need for high-speed data transfer compatible smartphones, thus fueling the demand for fifth-generation smartphones. Moreover, increasing demand for premium smartphones, along with the high disposable income of consumers in the region, is expected to support the market growth. High demand for new technology premium smartphones is also expected to augment the regional market growth over the forecast period.

Key Companies & Market Share Insights

The market is highly consolidated. The top 2 companies, Huawei Technologies Co. Ltd. and Samsung Electronics Co., Ltd., captured more than 70% of the overall share in 2019. Key market players are adopting various strategies, including new product development, M&A, and technological collaborations, to attain a competitive edge in the market. For instance, in April 2020, Samsung Electronics Co., Ltd announced to unveil the new Galaxy A51 and Galaxy A71 5G smartphones compatible with features such as an Infinity-O display, long-lasting battery, quad camera, and 5G-enabled connectivity.

In July 2019, Apple, Inc. acquired the majority of Intel Corporation’s 5G chipset modem business unit worth USD 1 billion. This strategy will help Apple Inc. to reduce the overall cost of manufacturing 5G smartphones and increase the overall productivity. Companies are also focusing on vertical integration to enhance their product portfolios with 5G-enabled devices. Some of the prominent players in the global 5G smartphone market include:

• Huawei Technologies Co. Ltd.

• Samsung Electronics Co., Ltd.

• BBK Electronics Corporation

• Apple Inc.

• Motorola, Inc.

• Others

5G Smartphone Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2027. For the purpose of this study, Grand View Research has segmented the global 5G smartphone market report on the basis of the operating system, sales channel, and region:

• Operating System Outlook (Revenue, USD Million, Million Units, 2019 - 2027)

  • Android

  • Windows

  • IOS

  • Others

• Sales Channel Outlook (Revenue, USD Million, Million Units, 2019 - 2027)

  • Online Sales

  • Offline Sales

• Regional Outlook (Revenue, USD Million, Million Units, 2019 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • France

    • Spain

    • Russia

    • United Kingdom

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa