Smartphone Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Smartphone Market is projected to expand from USD 641.59 Billion in 2025 to USD 1.11 trillion by 2031, registering a Compound Annual Growth Rate (CAGR) of 9.61%. A smartphone is defined as a handheld mobile unit that integrates cellular communication with personal computing capabilities, utilizing an operating system that supports internet connectivity and external applications. This market growth is largely driven by the ongoing deployment of advanced telecommunications infrastructure and the growing reliance on digital services for professional and financial tasks. As reported by the International Telecommunication Union, 5G network coverage was estimated to encompass 51% of the global population in 2024, a broadening connectivity landscape that fundamentally underpins the demand for device upgrades and increased data usage.

However, the industry faces a substantial hurdle due to market saturation in developed economies, where consumer replacement cycles have become significantly more protracted. This maturation is exacerbated by economic inflation and a decline in hardware differentiation, factors that collectively suppress new unit shipment volumes. Consequently, manufacturers encounter challenges in maintaining rapid growth rates, as they are compelled to compete for retention within an established user base rather than acquiring new first-time purchasers.

Market Drivers

The incorporation of sophisticated on-device generative AI is fundamentally transforming the Global Smartphone Market, shifting the competitive emphasis from hardware specifications to intelligent user experiences. Manufacturers are aggressively embedding neural processing units to facilitate features such as context-aware automation and real-time translation directly on handsets, thereby enhancing privacy and reducing latency. In a significant development, Samsung Electronics confirmed in its 'Samsung AI Roadmap' announcement in September 2025 that it intends to expand Galaxy AI features to over 400 million devices by the end of the year. This rapid deployment demonstrates how software-defined differentiation is becoming the primary mechanism for retaining users and encouraging premium upgrades in a saturated hardware landscape, as consumers increasingly value functional intelligence over minor physical improvements.

Simultaneously, the accelerated commercialization of 5G networks serves as a critical infrastructure driver, motivating consumers to replace legacy 4G devices to access superior connectivity speeds and bandwidth-intensive applications. As network operators broaden standalone 5G coverage and affordable compatible chipsets become available at lower price tiers, the transition to next-generation cellular standards has intensified globally. According to the 'Ericsson Mobility Report June 2025' released by Ericsson in June 2025, the telecommunications sector gained 145 million new 5G subscriptions in the first quarter of 2025 alone. This surge in connectivity adoption underscores the broader economic reliance on mobile platforms, a trend further supported by the GSMA in 2025, which reported that mobile services and technologies contributed $6.5 trillion to the global economy, validating the essential role of modern mobile ecosystems.

Market Challenges

The principal challenge obstructing the Global Smartphone Market is the extensive saturation within developed economies, which has significantly extended consumer replacement cycles. Since the vast majority of the population in these regions already owns a functional device, the pool of potential first-time buyers has dwindled, forcing manufacturers to pivot their strategies from acquisition to retention. This maturation is further compounded by economic inflation and a lack of substantial hardware differentiation, which collectively discourage consumers from upgrading their devices frequently. As a result, shipment volumes have stagnated as companies face the arduous task of persuading an existing user base to purchase new models in an environment where perceived value improvements are marginal.

This ceiling in market expansion is underscored by recent industry statistics highlighting near-total penetration in wealthy nations. Data from the International Telecommunication Union indicates that in 2024, mobile phone ownership exceeded 95 percent among individuals aged ten and older in high-income economies. This statistic confirms that the sector has effectively reached its limit for user growth in these key regions, leaving manufacturers with no option but to compete intensely for market share within a fixed demographic rather than capturing new demand.

Market Trends

The development of foldable and flexible display ecosystems is emerging as a crucial strategy for manufacturers to differentiate hardware in the premium tier. As conventional designs reach a plateau, brands are prioritizing malleable form factors that offer expanded screens and enhanced multitasking capabilities. This shift enables vendors to justify higher price points and engage consumers seeking novel experiences, effectively countering the commoditization of standard handsets. The commercial momentum for this segment is strong; Samsung Electronics reported in its 'Third Quarter 2025 Earnings Conference Call' in November 2025 that its foldable smartphone revenue and volume both achieved double-digit year-over-year growth, confirming rising demand for these innovative devices.

Concurrently, the adoption of circular economy practices and the growth of the refurbished device market are reshaping market dynamics. Driven by sustainability targets and consumer cost-consciousness, the industry is pivoting toward extending product lifecycles through certified resale programs. This transition compels OEMs to adopt trade-in models as essential revenue drivers rather than relying solely on new unit sales, effectively monetizing the existing installed base. The financial impact of this secondary market is substantial; according to the GSMA's 'Mobile Phone Circularity: Growing Momentum' report from February 2025, the global market for circular devices and services is projected to exceed $150 billion by 2027, illustrating the sector's evolution toward sustainable value retention.

Key Players Profiled in the Smartphone Market

• Samsung Electronics Co. Ltd.
• Apple Inc.
• BBK Electronics Corp. Ltd.
• Xiaomi Corp.
• Transsion Holdings
• Huawei Technologies Co. Ltd.
• Lenovo Group Ltd.
• Google LLC
• Sony Corp.
• ZTE Corp.

Report Scope

In this report, the Global Smartphone Market has been segmented into the following categories:

Smartphone Market, by Operating System:

• Android
• iOS
• Others (Microsoft
• Blackberry
• etc.)

Smartphone Market, by Display Technology:

• LCD
• OLED
• AMOLED
• Others (FHD+
• LCD+FHD
• etc.)

Smartphone Market, by Distribution Channel:

• Multi-brand store
• Exclusive Store
• Online
• Others

Smartphone Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smartphone Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

This product will be delivered within 1-3 business days.