The increasing application of mobile phones and the expansion of 5G technology to ease operations and help in the smoother functioning of these devices are expected to have significant impact on mobile phone accessories market. According to a study by an ESOMAR-certified market research and consulting firm, the market will surpass US$ 86.80 Bn by 2021.
With the incorporation of IoT in households, a swift rise in the demand for mobile phone accessories has been witnessed, and this trend will continue in the near future. The emergence of 5G technology will also boost the demand for mobile phone accessories that work on augmented reality and virtual reality technology.
The high speed of 5G technology will provide a better experience of devices that are connected through wireless technology and will play a major role in driving the demand for wireless connectivity devices.
In addition, growth in smart homes and smart appliances sales has been a complementing factor for mobile phone accessories. The demand for protective cases and covers is expected to be significantly high. Nearly 20% of mobile phone accessories sales are expected to concentrate in this segment.
With the advent of 5G technology, consumers will have a better experience at the usage of smart devices owing to better connectivity and high-speed Internet, which is estimated to fuel the demand for smart devices in the near future.
Key Takeaways from the Mobile Phone Accessories Market Study
· Study has forecast the market to rise at a CAGR of ~6.7% between 2021 and 2031
· The U.S. is expected to register impressive growth, accounting for above 78% of overall sales in North America
· The U.K. is expected to register nearly 4% Y-o-Y growth in 2021
· The demand from Germany and France is expected to rise considerably in response to the expansion of 5G networks
· While China will remain leading market in East Asia, the demand from South Korea and Japan too is expected to rise at a swift pace
“Market players are focusing on the expansion across eCommerce platforms such as Amazon, Walmart, and others to expand their footprint. Besides this, their investment towards innovation is increasing as well to launch products with advanced features,” says a study analyst.
Increasing Focus on the Miniaturization of Electronic Devices
Companies are focusing on introducing compact electronic components for printed circuit boards. This is intended to enhance the performance of devices such as smartphones as well as reduce the overall production cost.
Moreover, they are expanding their footprint, especially in high-growth markets such as India and China through various mergers and acquisitions. Mobile phone accessories are increasingly adopted for improving the end-user experience of mobile phone users, which has contributed to the growing demand for mobile phone accessories.
Impact of COIVD-19 & 2020 Market Analysis
The COVID-19 outbreak has encouraged governments and organizations to take exceptional measures to deal with the ongoing crisis. Such measures have led to the implementation of various restrictions on movement and business, transitory closure of organizations, and required physical distancing for extended period of time.
The COVID-19 pandemic has fundamentally reduced worldwide monetary action and has caused critical instability across various sectors. The COVID-19 pandemic and the measures taken by nations in response have adversely affected the mobile phone accessories business across the world.
Who is winning?
Some of the key players operating in the mobile phone accessories market are Samsung Electronics Co. Ltd., Logitech International S.A., Harman International Industries Incorporated, Plantronics Inc., Apple Inc., Sony Corporation, GN Group, Incipio Group, Western Digital Corporation, Kingston Technology Company Inc., Cambridge Soundworks Inc., Bscstore Inc., The Case Factory, TYLT, Ballistic, Moftware Inc., Seidio Inc., Skullcandy Inc., SincoCase International Industrial, Case Mate Inc., and among others. In order to gain competitive advantage, the market players are focusing on product launches. For instance:
· In May 2020, Skullcandy Inc. had launched its new True Wireless earbuds-Push Ultra, Indy Evo, Indy Fuel, and Sesh Evo. This would help the company to attract more customers as the company had also added new features like wireless charging, solo bud use and Tile technology which would help the customer to experience unlike any other in the market.
· In December 2020, Apple Inc. had launched AirPods Max, wireless headphones. The new AirPods Max has advanced software to power computational audio for a breakthrough listening experience with adaptive EQ, active noise cancellation, transparency mode, and spatial audio. This would help the customers to have a breakthrough listening experience.