5G smartphone market is anticipated to grow at a significant CAGR of 11.7% during the forecast period (2024-2031).5G Smartphoneis a mobile device equipped with hardware and software capabilities to connect to 5G cellular networks. These smartphones utilize 5G technology, the fifth generation of mobile networks, which offers significantly faster data speeds, lower latency, and greater network capacity compared to previous generations like 4G LTE.

Market Dynamics

Advancements in 5G Smartphone Technology

The network infrastructure upgradation by telecommunication firms to broaden coverage and deliver higher speeds with lower latency to enrich user experiences is a key factor driving the growth of the global market. Semiconductor manufacturers engages in developing 5G chipsets tailored for mobile devices, integrating components like modems and processors to facilitate connectivity and support advanced features such as multiple-input multiple-output (MIMO) and beamforming. Smartphone manufacturers and component suppliers are collaborating on advanced antenna design, employing technologies like massive MIMO and adaptive beamforming to enable faster data speeds and improved signal reception across diverse environments. For instance, in March 2024 Samsung unveiled the Galaxy F15 5G, featuring a segment-best sAMOLED display, 4 generations of Android upgrades, 5 years of security updates, and a powerful 6000mAh battery. This latest offering promises enhanced user experiences and longevity in performance, marking a significant leap forward in mobile technology.

Consumer Demand Driving 5G Smartphone Adoption: Transforming Connectivity and Experiences

Consumer demand propels the widespread adoption of 5G smartphones in the global market due to high-speed connectivity, as consumers rely on smartphones for bandwidth-intensive activities like streaming high-definition videos, online gaming, and video conferencing. 5G networks offer faster data speeds and lower latency, fulfilling the demand for seamless connectivity and real-time communication. Additionally, the allure of enhanced mobile experiences enabled by 5G technology, such as immersive AR and VR applications, ultra-high-definition streaming, and cloud gaming, resonates with consumers seeking advanced technology and premium features and also the introduction of 5G-enabled devices with advanced features and capabilities by smartphone manufacturers attracts consumers, who value the perceived benefits and unique attributes of 5G smartphones. For instance, in August 2022, Bharti Airtel (Airtel) unveiled its plans for 5G network deployment by announcing strategic agreements with industry leaders Ericsson, Nokia, and Samsung. The collaboration signifies a significant step towards realizing Airtel's vision of delivering cutting-edge 5G services to its customers. 

Market Segmentation

Our in-depth analysis of the global 5G smartphone market includes the following segments by operating system and by sales channel:

• Based on operating system, the market is sub-segmented into android, windows and IoS.

• Based on sales channel, the market is sub-segmented into online sales and offline sales.

Offline Sales is Projected to Emerge as the Largest Segment

Based on the sales channel, the global 5G smartphone market is sub-segmented into online sales and offline sales. Among these, the offline sales sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes the preference of many consumers for physical interaction and experience with smartphones before making a purchase decision.

Android Sub-segment to Hold a Considerable Market Share

The Android sub-segment is poised to maintain a substantial market share in the global 5G smartphone market due to its open-source platform, offering manufacturers the flexibility to customize devices to meet diverse consumer needs. With a wide range of smartphone options spanning various price points and specifications, Android appeals to a broad spectrum of consumers worldwide. Its integration with Google services and compatibility with third-party apps enhance user experience and accessibility. For instance, in September 2023, moto launched India’s Most Powerful 5G Smartphone g54 5G with 12GB RAM, MediaTek Dimensity 7020, and 6000mAh Battery.

Regional Outlook

The global5G smartphonemarket is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

North America's Rapid Growth in 5G Smartphone Market

North America emerged as the fastest-growing due to the early and widespread deployment of 5G networks, particularly in the US that laid the foundation for robust demand for compatible smartphones. With a population characterized by higher disposable incomes and a penchant for advanced technology, consumers in the region eagerly embrace the faster data speeds and enhanced mobile experiences offered by 5G networks. Additionally, North America boasts a vibrant smartphone ecosystem, fostering innovation and competition among manufacturers and carriers such as with increasing enterprise adoption and supportive government initiatives, accelerating the growth of the 5G smartphone market in the region. For instance, in April 2024, according to the US Department of Commerce, The Biden-Harris Administration announced a significant development in semiconductor manufacturing, revealing that the U.S. Department of Commerce and TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT). This agreement outlines plans to provide up to $6.6 billion in direct funding under the CHIPS and Science Act. The proposed funding aims to support TSMC's substantial investment of over $65 billion in constructing three state-of-the-art semiconductor fabrication facilities in Phoenix, Arizona. These facilities are set to manufacture the world's most advanced semiconductors, with applications spanning artificial intelligence (AI), high-performance computing, 5G/6G communications, and beyond. This proposed CHIPS investment represents a significant step towards bolstering domestic semiconductor production and enhancing America's technological capabilities.

Global 5G Smartphone Market Growth by Region 2024-2031

Asia-Pacific Holds Major Market Share

Among all the regions, Asia-Pacific holds a significant share due to the early adoption of 5G technology, particularly in countries like China, South Korea, and Japan, that has led to the widespread availability of 5G networks and devices. With a large and tech-savvy consumer base, coupled with a highly competitive market landscape, there is significant demand for 5G smartphones in the region. Additionally, supportive government policies and investments in infrastructure further fuel the growth of the market. For instance, in March 2024, realme launched two smartphones realme 12 5g and realme 12+ 5g in India that has the Android 14 operating system and are powered by MediaTek chipset.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global 5G smartphonemarket includeApple Inc., Google, Samsung Electronics, China Mobile, Huawei Technologies Co., Ltd. and others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in January 2024, Reliance Jio and OnePlus announced a partnership aimed for 5G innovation in India that will focus on unlocking the full potential of 5G technology in India.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global 5G smartphonemarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.