Foldable Smartphone Market Analysis (2024 – 2030)

The foldable smartphone market exhibited a valuation of USD 24.52 billion in 2023. Projections for the period spanning 2024 to 2030 indicate a robust growth trajectory, with estimations foreseeing a rise to USD 100.06 billion by 2030, reflecting a notable compound annual growth rate (CAGR) of 22.25%.

Overview of Foldable Smartphones

The inception of foldable smartphone concepts dates back as early as 2008 with Nokia's "Morph," followed by Samsung Electronics' introduction in 2013, leveraging flexible OLED displays. These devices typically feature a folding mechanism along a vertical axis, transitioning from a compact form to a wider tablet-like configuration. Notable examples include the RoyoleFlexPai and Huawei Mate X, which adopt a design where the display wraps around to the back when folded, or models such as the Samsung Galaxy Fold series, utilizing a booklet-like structure with an expansive interior screen complemented by an external display for interaction without unfolding.

Characterized by a distinct foldable display, these smartphones amalgamate the functionalities of large-screen tablets with the portability and versatility of conventional smartphones. Pioneering companies such as Samsung and Huawei spearhead the innovation in this domain.

Key Market Dynamics:

Foldable smartphones feature flexible, plastic OLED displays as opposed to traditional glass, offering the requisite bend radius for foldability. However, plastic displays are prone to scratches and blemishes, unlike their glass counterparts. Despite advancements in flexible glass technology like Corning's Willow Glass, challenges persist, including manufacturing complexities and susceptibility to damage from salt solutions used in the process.

The burgeoning demand for cutting-edge electronics and the proliferation of internet users are pivotal factors propelling the foldable smartphone market's expansion. Furthermore, the surge in Phablet demand contributes positively to market growth. Nevertheless, impediments such as the exorbitant costs associated with advanced technology and manufacturing intricacies of foldable displays restrain market progression. Nonetheless, diversifying smartphone vendors' product portfolios presents lucrative growth avenues.

Drivers Shaping the Foldable Smartphone Market:

Escalating Internet Penetration Stimulates Market Growth:

The ubiquitous presence of the internet catalyzes consumer awareness and adoption of foldable smartphones. Online platforms serve as potent marketing channels, amplifying product visibility and influencing consumer purchase decisions. Endorsements from celebrities and influencers further bolster product appeal, driving adoption among enthusiasts.

Advancements in OLED Display Production and Smartphone Technologies:

The proliferation of OLED displays, integral to foldable smartphone production, underscores market dynamism. Companies intensify production endeavors to meet escalating demand fueled by technological advancements and evolving consumer preferences. Notably, the fusion of advanced features with sleek design aesthetics enhances the allure of foldable smartphones, positioning them as multifunctional alternatives to traditional tablets.

Furthermore, the competitive landscape fosters innovation, prompting companies to introduce upgraded iterations and novel features to sustain market relevance.

Restraints and Challenges:

Manufacturing foldable displays entails intricate processes and necessitates continuous research and development initiatives to address existing limitations and enhance product quality. Sustaining market competitiveness mandates a holistic approach encompassing innovation beyond display technology.

Moreover, the premium pricing of foldable smartphones poses affordability concerns for consumers. Repair costs in the event of damage are substantially higher compared to conventional smartphones. Additionally, the form factor of foldable smartphones necessitates cautious handling to mitigate the risk of damage, prompting deliberation on the cost-benefit aspect of investment in such devices.

Foldable Smartphone Market Segmentation: By Panel Type

• Flip
• Fold

Within the Panel Type category, the Flip segment commands the largest portion of the foldable smartphone market. In comparison to foldable smartphones, it offers a more economical option. Conversely, the fold segment is poised for future growth, driven by modern electronic consumer demands. Its tablet-like form factor provides versatile utility for tasks such as document editing and entertainment, fostering its appeal. Additionally, foldable smartphones present enhanced features, including larger screen displays, compared to their flip counterparts.

Foldable Smartphone Market Segmentation: By Sales Channel

• Offline
• Online

Following the COVID-19 pandemic, a notable shift towards online sales channels has been observed due to their convenience and the availability of discounts and offers. Online platforms afford consumers the flexibility to purchase and receive products from any location seamlessly. Conversely, offline channels, such as brick-and-mortar stores, offer limited discounts and necessitate physical visits, often inconveniencing busy consumers in their decision-making process.

Foldable Smartphone Market Segmentation: Regional Analysis

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

The Asia-Pacific region emerges as the dominant market for foldable smartphones, propelled by key players like Samsung and Xiaomi Corporation based in China. With China exhibiting a projected CAGR of 22.1% by 2023, bolstered by its stature as a leading global electronics manufacturer, the region underscores significant growth potential. Additionally, India is anticipated to witness substantial growth, notably since Samsung established the world's largest mobile factory in Noida in 2018. Meanwhile, North America is poised for rapid growth, with the United States expected to account for 18% market share expansion.

COVID-19 Pandemic: Impact Analysis

The COVID-19 pandemic exerted a dual impact on the foldable smartphone market. Manufacturing and import-export activities faced disruptions for several months, leading to supply chain challenges. Moreover, pricing dynamics were affected by the implementation of additional safety measures during production. However, the pandemic provided an opportunity for companies to enhance product offerings through dedicated R&D initiatives, contributing to product refinement and advancement.

Latest Trends/ Developments:

Technological advancements continue to drive growth in the foldable smartphone market, facilitating the production of more robust and sophisticated products. Enhanced technology integration enables manufacturers to deliver superior iterations compared to previous models, thereby propelling market expansion.

Key Players:

The foldable smartphone market is led by the following key players:

1. Samsung
2. AsusTek Computer Inc.
3. LG Electronics Inc.
4. vivo Mobile Pvt Ltd
5. Royole Corporation
6. Huawei Technologies Co., Ltd.
7. Microsoft Corporation
8. Motorola Mobility LLC
9. ZTE Corporation
10. Xiaomi Corporation

• In 2020, Huawei introduced the Mate Xs, an updated iteration of the original Mate X, which entered the global market. Enhancements included a sturdier display, enhanced functionality, and a redesigned cooling system. Concurrently, Samsung unveiled the Samsung Galaxy Z Fold 2.
• The following year, 2021 witnessed the launch of various new products by several companies, such as the Huawei Mate X2 and the Xiaomi MIX Fold. Samsung expanded its portfolio with the introduction of two additions: the Samsung Galaxy Z Fold 3 and the Samsung Galaxy Z Flip 3. Towards the end of the year, OPPO revealed the OPPO Find N.

In 2022, Vivo debuted the X-Fold, while Xiaomi and Samsung also introduced new offerings. These included the Xiaomi MIX Fold 2, Samsung Galaxy Z Fold 4, and Samsung Galaxy Z Flip 4 (Galaxy Unpacked edition). Subsequently, the Galaxy Z Fold 4 and Galaxy Z Flip 4 were officially launched. Additionally, Moto Razr made its debut in the Chinese market during the same year. In 2023, Motorola Mobility announced the introduction of the new Razr and Razr+ to the U.S. market.