IT Device Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The IT device market is expected to grow at a CAGR of 2.4% during the forecast period. The market is expected to witness growth in the forecast period owing to the higher demand for mobile devices. During the COVID-19 epidemic, there was an increase in demand for PCs due to businesses' and consumers' growing flexibility and mobility requirements.

Key Highlights

• The demand for mobile phones has been growing over the past several years as consumer spending has increased globally. Notably, the smartphone demand has been continuously expanding in terms of models and market size. It was projected that 40% of people owned a smartphone last year. According to Ericsson, the number of smartphone subscribers globally has surpassed six billion and is projected to increase by several hundred million more over the next several years. China, India, and the United States are the top three nations with the most smartphone users.
• Notably, laptop sales are escalating in major countries, such as the United States and China. Major laptop manufacturers have reported an increase in sales of computers following the COVID-19 pandemic. Due to the continuous updates of graphics, connectivity, weight, and portability, the demand for the latest technology device is always anticipated.
• However, the higher demand for laptops has caused personal computer sales to be contracted across the globe. Also, after the pandemic, due to the work-from-home and social distancing norms, there was an upswing in demand for PCs. However, with everything back to normal, people have returned to their offices and institutions. Thus, the need for personal computers has slowed. Also, further contraction is expected in PC sales worldwide for the forecast period.
• China is leading the global IT device market, followed by the United States, Japan, and India. China had the highest revenue in the phone segment for the last year. At the beginning of this year, China had 1.63 billion mobile phone connections, according to data from GSMA Intelligence. During the second financial quarter of this year, Honor and Vivo held the highest smartphone market share.
• During the COVID-19 pandemic, the global demand for IT devices like PCs, laptop tablets, and phones grew. The surged demand mainly backed this growth for networking devices owing to social distancing and work-from-home regulations worldwide. However, the demand for personal computers fell with the gradual withdrawal of restrictions and the reopening of offices and institutions. Notably, the demand for mobile phones, especially smartphones, is expected to stabilize during the post-COVID-19 period.

IT Device Market Trends

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.

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.

IT Device Market Competitor Analysis

The IT Device market is highly fragmented as it currently consists of many players. Several key players in the market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their global footprints in developing regions to consolidate their positions in the market. The major players in this market include Dell Inc., Lenovo Group Limited, Apple Inc., Samsung Electronics Co., Ltd, and Microsoft Corporation.

In November 2022, Microsoft launched new Surface devices that ushered in the next phase of computing for Windows PCs. With the introduction of the new Surface products, Microsoft's top features are combined on a single gadget, allowing all users to participate, be heard, seen, and creatively express themselves.

In October 2022, Samsung Electronics Co., Ltd, the market leader in advanced memory technology, confirmed that the most recent LPDDR5X DRAM, which boasts the best performance in the industry at 8.5 gigabits per second (Gbps), has been approved for usage on Snapdragon mobile platforms. Samsung surpassed the previous maximum speed of 7.5Gbps in March, reiterating its dominance in the memory industry.

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