Market Trends of IT Device Industry
This section covers the major market trends shaping the IT Device Market according to our research experts:
Robust Contribution from Mobile Segment
- In many densely populated nations, such as China and India, the smartphone penetration rate is still around 70%, giving the market for smartphones significant room for development. Despite stagnant unit sales over the past several years, the worldwide smartphone market's revenue has increased because the average selling price of smartphones has increased.
- The mobile phone market is vast and will likely keep expanding and influencing many more markets. The improvement of wireless connectivity makes it easier to integrate cutting-edge technologies like IoT, AI, AR, and cloud computing into mobile devices. Thereby, there is a rapid demand shift in the market for these IoT-enabled devices from traditional wireless phones.
- People worldwide now have access to connections on the back of a significant mobile network. According to a GSMA report, globally, there were 4.2 billion subscribers to mobile internet last year. This number is expected to grow to 5 billion by 2025. The increased demand for internet subscribers has escalated the market for smartphones across the globe.
- As per Mobile Economy's this year's report, the number of unique mobile subscribers as of last year was 5.3 billion, which is expected to grow to 5.7 billion by the end of 2025. Also, the global sim connection is expected to grow remarkably from 8.3 billion last year to 8.8 billion in 2025. Notably, the global smartphone penetration is anticipated to increase from 75% last year to 84% in 2025.
- The GSMA's report predicts that by 2025, there will be 2 billion 5G connections worldwide, surpassing the current level of 1 billion connections. In the smartphone industry, 5G has also become a significant player, and it is expected to change how people use their phones today. Over the past several quarters, the shipment of devices with 5G capabilities has grown significantly worldwide.
- According to GSMA, the mobile industry contributed USD 4.5 trillion to the global GDP last year, or 5% of the entire global GDP. According to the forecast, the mobile industry is expected to witness a contribution of USD 4.9 trillion by 2025.
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Asia-Pacific Holds a Significant Share
- Densely populated countries of the Asia-Pacific are expected to witness rising demand for IT devices during the forecast period. This growth is mainly attributable to the increasing levels of internet use, more disposable incomes, greater consumer awareness of the advent of cutting-edge technology, and, most importantly, the expanding population in this region. Such factors are driving the market's expansion.
- The Asia-Pacific region's economy continues to benefit significantly from the mobile ecosystem, which now accounts for 5% of the regional GDP and USD 770 billion in additional economic value. According to GSMA, the expected number of unique mobile subscribers in the Asia-Pacific would increase from 1.6 billion or 59% last year to 1.8 billion or 62% in 2025. Also, the number of mobile internet users in the region is anticipated to surge from 1.2 billion or 44% last year to 1.5 billion or 52% in 2025. From the upswing of mobile internet users, it can be forecasted that the demand for smartphones will be observed for the upcoming period.
- Additionally, as per the GSMA report, the smartphone adoption rate in the Asia-Pacific is expected to increase from 74% previous year to 84% in 2025. Also, from 2020 to 2025, there would be an expected addition of half a billion new mobile subscribers globally, which the Asia-Pacific alone would contribute to approximately 188 million additional subscribers. However, there is a substantial usage gap in the population's mobile internet connectivity in the region, which leaves scope for further growth in smartphone penetration.
- China is currently the No. 1 owner of the fastest supercomputers in the world for the eighth time since November 2017, owing to the inclusion of 186 Chinese supercomputers on the most recent list of the world's Top-500 supercomputers, which makes up about 40% of all those on the list. By 2025, the Chinese government may use up to 10 exascale supercomputers. Supercomputers have developed quickly in recent years due to the rising need for processing capacity.
- Encouragingly, through the projected period, countries like China and India are anticipated to propel market expansion on the back of increased government initiatives to enhance laptop manufacturing and lower import taxes on spare parts. Also, technological advancement and changing trends, the need for faster updates, and compatibility with emerging technologies are driving the laptop market in APAC.
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