GLOBAL WI-FI PHONES MARKET SIZE (2024 - 2030)

Estimations suggest that the Wi-Fi Phones market is projected to reach a value of USD 13.04 billion by 2023 and USD 29.68 billion by 2030, with a compound annual growth rate (CAGR) of 17.8%.

Industry Overview:

The escalating global demand for smartphones and electronic devices has propelled the need for Wi-Fi Phones, which are devices capable of connecting to Wi-Fi networks. Offering reliable connectivity services, Wi-Fi Phones have witnessed significant growth in workplaces, schools, and universities where Wi-Fi networks are prevalent. The ease of access to the internet through these networks has contributed to the rising number of internet users worldwide. This surge in accessibility, coupled with decreasing internet costs, has been a pivotal factor in the sector's expansion. However, despite its rapid growth, the industry faces several challenges hindering its progress. Concerns regarding privacy and security have deterred some individuals from transitioning to Wi-Fi Phones. Addressing these apprehensions could convert potential customers. Organizations worldwide are proactively developing robust systems to safeguard against data theft.

COVID-19 Impact:

The Wi-Fi phones market experienced a significant impact from the COVID-19 pandemic. In efforts to curb the virus spread, numerous countries implemented lockdowns, disrupting global supply chains and affecting the availability of crucial raw materials such as semiconductors for phone production. Consequently, the supply of smartphones decreased, creating a supply-demand gap that resulted in substantial losses for the industry. However, the Wi-Fi phones market saw a surge in demand due to increased internet usage and a notable rise in e-commerce activities during the pandemic. With people adhering to social distancing measures, online shopping became more prevalent, leading to a boost in the market for electronic devices like Wi-Fi Phones. Some mobile manufacturers, such as Samsung, experienced unprecedented profits during this period, credited to their resilient supply chains and effective strategies. As lockdowns eased, the industry gradually returned to normalcy, exhibiting steady growth as supply chains stabilized. Companies are now strategically diversifying their vendors to mitigate risks from potential future events similar to the COVID-19 pandemic.

Market Drivers

The growth of the Wi-Fi Phones market is primarily fueled by an increase in consumer disposable income and rising living standards.

The affordability of mobile phones has played a pivotal role in driving market growth. With consumers experiencing a steady increase in disposable income, their purchasing power has expanded. Additionally, as people's living standards improve, there is a noticeable shift towards trendy and tech-related products such as smartwatches, contributing significantly to the industry's growth.

The rising demand for Wi-Fi-enabled phones is another key driver propelling the growth of the Wi-Fi Phones Market.

A consistent increase in demand for Wi-Fi phones has been observed, largely due to the expanding internet penetration globally. Wi-Fi Phones have become indispensable for everyday tasks, particularly highlighted during the pandemic when schools transitioned to remote learning. This significant role in facilitating education has been a major factor driving the market's growth.

Market Restraints

Privacy concerns and the risk of data theft pose significant restraints to the Wi-Fi Phones Market's growth.

Operating on cutting-edge technology, the Wi-Fi Phones market demands a high level of technical expertise. However, the industry faces a shortage of skilled professionals, limiting its ability to meet market demands. This shortage impedes technology adoption, thereby negatively affecting industry growth. Additionally, various security and privacy issues further restrain market expansion.

The shift towards cheaper alternatives in the phone market presents another restraint to Wi-Fi Phones' growth.

Consumers are increasingly turning to more economical phone options, such as simpler devices with basic features. These alternatives cater to market segments unable to afford Wi-Fi Phones, posing a competitive challenge to the industry. Unless addressed, Wi-Fi Phones risk losing market share to these budget-friendly alternatives. These simpler mobile phones provide essential communication and messaging services through cellular networks, which offer various subscription plans. The ease of subscribing to these services through payment applications like GPay, Paytm, and PhonePe has contributed to the growth of these alternatives, hindering the Wi-Fi Phones Market's expansion.

Segmentation – By Operating System

• Android
• iOS

In terms of operating systems, mobile phones fall into two primary categories: Android and iOS. Android devices are globally the most utilized phones. Their operating system is open-source and readily accessible to the developer community. Android was introduced following the launch of the iPhone into the market. Initially, the iPhone posed significant competition to Android due to its first-mover advantage in full-touchscreen mobile phones, but Android eventually caught up.

Wi-Fi Phones Market Segmentation – By Distribution Channel

• Online
• Offline

The phone market employs various distribution channels, including supermarkets, convenience stores, e-commerce platforms, and others. Traditionally, mobile phones have been distributed through supermarkets and convenience stores. However, due to the pandemic, there has been a shift from offline stores to online platforms. Consumers have benefited from significant discounts on e-commerce platforms, which do not have fixed costs associated with physical store installations and maintenance.

Wi-Fi Phones Market Segmentation – By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World
• Middle East and Africa

North America and Europe hold the largest market value shares. However, the Asia-Pacific region is experiencing rapid growth compared to other regions. The growth in Asia-Pacific can be attributed to an efficient supply chain, affordable labor, and a high number of manufacturing facilities. In India, the Wi-Fi phone market witnessed remarkable growth after the entry of Jio, offering free 4G internet. This development prompted major players to introduce similar pricing plans with enhanced data packages.

Wi-Fi Phones Market Segmentation – By Company

1. Cisco
2. Ericsson
3. Extreme Networks
4. Huawei
5. Juniper Networks
6. Panasonic
7. Fortinet
8. NETGEAR
9. Aruba
10. Alcatel-Lucent Enterprise
11. D-Link
12. Broadcom
13. Airtel
14. Orange Business Services

Key companies involved in phone manufacturing include Samsung, Apple, Sony, Xiaomi, among others. These companies primarily focus on Android devices emerging from Southeast Asia. Enhancements in production capacity and supply chains have facilitated industry growth. Furthermore, substantial investments in research and development by these companies have led to the introduction of innovative products such as flip and fold phones, recently launched by Samsung Electronics.

Recent Notable Events in the Wi-Fi Phones Market:

• In September 2020, Ericsson enhanced its capabilities in the 5G model, opening new revenue streams. The company aims to target the market with its 5G devices.
• In February 2020, Panasonic partnered with the Tata group's NELCO to introduce in-flight Wi-Fi services. This service enables the organization to offer value-added services to passengers, such as high-speed internet access. The lack of internet services often poses challenges for travelers.