Surging smart phone sales, along with the expansion of 5G technology are expected to have a significant positive impact on the growth in sales of mobile phone accessories. This is according to a study by Future Market Insights (FMI), who have reported that the market will surpass US$86.80bn (eds: approx. €76bn) in 2022, and grow at a CAGR of 6.7%, reaching US$166bn (€157bn) by 2031.
In its report, FMI asserts that mobile phone accessories have become essential for consumers and they are willing to pay for advanced features. A reduction in the prices of smartphones has further created attractive opportunities for their sales. Some of the companies have launched state-of-the art technologies to turn these accessories into smart audio systems and smart computers.
Their efforts are evident in increasing the frequency of innovations. For instance, the launch of wireless headphones with advanced sound quality and noise cancellation technology offered remarkable improvement over their wired predecessors. Active noise-cancelling headphones that electronically remove unwanted ambient noise are therefore high in demand, according to FMI.
Premium brands in high demand across the globe
In Latin America, portable speakers are high in demand, especially in Brazil and Mexico, and this trend is expected to continue over the forecast period. Rising spending power of consumers and smartphone penetration are projected to boost the mobile accessories market during the forecast period.
Innovation in design and the introduction of premium smartphone accessories, especially in the US and Canada, are expected to continue in the future. The demand for power banks is high in North America and this trend is expected to continue over the next few years.
Premium mobile phone accessories are gaining traction, especially in Germany, France, and the UK, due to the significant demand for high quality, durable, and unique features in gadgets. The purchase of mobile phone accessories through online channels is gaining popularity in Western Europe due to the high penetration of mobile broadband in the region.
The pandemic has had a significant negative impact on sales because of the retail sector’s shutdown. Nevertheless, the increasing focus on the at-home experiences led to sales recovery Q3 onwards. During the mid-lockdown period, i.e. May 2020, the market witnessed a sluggish growth pattern owing to the crunch in available products, an aftereffect of stalled production during the lockdown period.
This after-effect continued to impact the market in the post-lockdown period, leading to sluggish growth in sales. However, boosted by e-commerce, the sales of well-known home appliance brands soared in the post-lockdown phase. Nonetheless, the supply chain got hampered owing to the lockdown. The effect was, however, a short-lived one and companies are prepping to bounce back with higher sales in the coming time period.
While China will continue to be the largest market in East Asia, demand from South Korea and Japan is likely to grow rapidly as well, FMI said. However, the US continues to hold 78% of total sales in North America.
Meanwhile, it is believed that India’s digital economy can possibly arrive at $1 trillion by 2025, driven by expansion of personal digital assets (PDAs), increasing internet penetration, growth of mobile broadband, and web-based media. It is the attention on broadband and looming innovative move to 5G in the area that is expected to serve as the “impetus”. It is expected that current situation will support digitisation by the introduction of new administrations & products, and new intermediaries. In South Asia, India is expected to account for considerable market share.
In the UK, a rise in the demand for wireless-based audio devices such as portable Bluetooth speakers, sound-bars, headphones, and microphones is enabling growth. Also, consumer preference for music-on-the-go, coupled with advancements in wireless technology is fuelling the demand for wireless headphones/earphones.
Among countries in the Oceania, Australia is estimated to account for majority in terms of revenue share at 4/5th in 2021. New Zealand mobile phone accessories market is anticipated to expand at a CAGR of 8.1% and is expected to register higher growth in terms of value in the coming foreseeable future, FMI says.
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