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5G is a unified, more capable air interface. It has been designed with an extended capacity to enable next-generation user experiences, empower new deployment models and deliver new services.
With high speeds, superior reliability and negligible latency, 5G technology is expected to expand the mobile ecosystem into new realms. 5G is likely to impact every industry, making safer transportation, remote healthcare, precision agriculture, digitized logistics and more, a reality.
Qualcomm is the primary provider of modem chips for the vast majority of phones that can hook to 5G networks, which are designed to transfer data 10 to 100 times faster than current 4G technology.
The global 5G Smartphone market was valued at USD xx billion in 2019 and is expected to grow at a CAGR of xx% during the forecast period. There was a considerable market demand for 5G smartphones in 2019, reaching nearly 12.42 million units, however there was a steep reduction in the first two quarters of 2020 owing to the global pandemic.
The market has gained traction from Q3 2020 onwards is expected to maintain its momentum during the upcoming years.
5G models have increased at breakneck speeds, from just around 50 models in Q1 2020, there are more than 200 models with 5G network available in the world. 5G Models have also been extremely attractive to buyers, the sales of 5G models have grown by almost threefold.
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.
The smartphone shipments in China are forecasted to grow by 6 percent and 3.5 percent in the US. 5G development in both markets and the success of iPhone 12 series are expected to boost smartphone shipments this year. Therefore, more than 40 percent of global volume of smartphone shipments in 2021 could be 5G smartphones Market. This is further expected to grow to 69 percent by 2025. Additionally, average selling price (ASP) for 5G smartphones Market is expected to drop to $404 (roughly Rs. 29,400) by the end of 2025 due to competition in the 5G Android space.
Rising demand for high-speed data connectivity for integrated IoT (Internet of Things) applications, such as smart home products, energy management, is estimated to propel the adoption of 5G smartphones market in various domains over the forthcoming period.
5G smartphones market are characterized based on aggressive pricing, increased data transfer rate, technology and designs, innovative features such as compatibility with smart devices. These factors are also responsible for the growth of the market.
US-based Gorilla Glass maker Corning, which works with almost all handset makers in India and globally, said that 5G will accelerate the replacement cycle.
To know more about US 5G Infrastructure Market, read our report
The smartphone market is expected to return to a full recovery in the coming years on the back of strong 5G push.
The factors boosting the overall market growth are its ability to provide high speed internet connectivity, coverage, and reliability in comparison to its 4G based smartphones, new product launches by 5G enabled smartphones manufacturer, huge untapped market in the emerging economies, particularly China and India.
The share of 5G-enabled phones, out of total smartphone sales, will touch 20-25% in 2021. As Chinese smartphone brands, Oppo and Realme aggressively push their 5G portfolio in India.
The key functional drivers favoring market growth are increased mobile broadband, reliable low latency communication, high level of security, and power efficiency.
Furthermore, the emerging trend of smartphone-connected automobiles, healthcare devices, and fleet management operations is also anticipated to drive the fifth-generation smartphone demand in the near future. Smartphone connectivity also finds its application in smart metering, personnel traffic, 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 applications operations to cloud networks, which can be seamlessly accessed with 5G smartphones over a centralized network across the globe, thus boosting the product adoption.
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.
Although, the smartphone manufacturers are working together with their supplier network to address these tough challenges in terms of production and operations. This is a key factor that acts as a hurdle for the growth of the market.
Higher price of the product initially also led to a lower than expected consumer demand for the product in its initial phase. But this is likely to be overcomed as many mid range product launches are lined up for the coming year.
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, China’s exports had shown a rapid decline by nearly 17% in the first two months of 2020 as compared to the last year. However, China is coming closer to its recovery phase in the late quarters of 2020, which will reduce the impact of this pandemic on the growth of China’s market.
The advent of 5G technology has revolutionized the smartphone industry, offering faster connectivity, low latency, and enhanced user experiences.
Several smartphone companies have been at the forefront of this technological shift, releasing 5G-enabled devices and driving the adoption of 5G networks.
Apple launched its first 5G-enabled smartphones, the iPhone 12 series, in late 2020. The iPhone 12 series introduced Apple’s proprietary 5G modem and featured advanced camera systems, powerful processors, and high-resolution displays.
Apple’s commitment to 5G technology is evident in its focus on optimizing device performance, software integration, and building a robust ecosystem of 5G-compatible apps. The company continues to innovate and improve its 5G offerings with each new iPhone release.
Samsung has been a key player in the 5G smartphone market, offering a wide range of 5G devices across different price segments. The company’s flagship Galaxy S21 series, released, featured 5G capabilities and introduced cutting-edge technologies like advanced camera systems, high refresh rate displays, and powerful processors.
Samsung has also been actively collaborating with network carriers to expand 5G coverage and improve network speeds.
Huawei has been a significant player in the 5G smartphone market, leveraging its expertise in telecommunications infrastructure. The company’s flagship P40 and Mate 40 series launched, showcased Huawei’s advanced 5G technology, powerful Kirin processors, and high-quality cameras.
However, due to ongoing geopolitical challenges, Huawei’s access to key components and software has been restricted, impacting its ability to compete globally in the 5G smartphone market.
Xiaomi has gained prominence in the 5G smartphone market by offering feature-packed devices at competitive prices. The company’s Mi 11 series introduced 5G connectivity, powerful processors, high-refresh-rate displays, and advanced camera systems. Xiaomi has also been actively expanding its presence in global markets, capitalizing on the growing demand for affordable 5G smartphones.
OnePlus has established itself as a premium smartphone brand, with a focus on delivering flagship-level features at relatively lower prices. The OnePlus 8 and OnePlus 9 series, respectively, introduced 5G capabilities, high-refresh-rate displays, and powerful processors. OnePlus has been leveraging partnerships with network carriers to promote its 5G devices and provide a seamless 5G experience to its users.
Oppo has been actively expanding its 5G smartphone portfolio, offering devices with innovative features and designs. The Find X3 series showcased Oppo’s commitment to 5G technology with its powerful processors, high-resolution displays, and advanced camera systems. Oppo has also been investing in research and development to improve 5G network performance and deliver a seamless user experience.
Overall, smartphone companies are striving to capitalize on the potential of 5G technology by releasing feature-rich devices and expanding their 5G product portfolios.
The market for 5G smartphones 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, however, adopting various strategies, including new product development, Mergers & Acquisitions, and technological collaborations, to attain a competitive edge in the market.
Most of the leading models under the 5G smartphone category are from Chinese Original Equipment Manufacturers, considering over 60% of the global 5G market is situated in China. However, with growing penetration of 5G devices globally, a varied group of smartphone manufacturers have emerged owing to the presence of Vivo and OPPO budget segment Y and A series phones in the top-seller list.
This indicates that 5G, which was once considered a flagship only commodity, is now trickling down to the budget segment phones, attributable to the availability of newer, cheaper chipsets from Qualcomm and Mediatek.
The global 5G smartphone market is estimated at $XX Million in 2022 growing at –% CAGR till 2030.
