Rapid phone market growth drives demand for accessories

by Melanie Victoriano (Content Editor)

Image source: Shutterstock

Global smartphone shipments reached 1.38 billion units in 2021, up 7.7 percent from 2020 when there was a decline due to lower discretionary spending among end users at the height of the COVID-19 pandemic. This upward trend is expected to continue from 2022 to 2027, with shipments increasing at a CAGR of 3.7 percent.

Geographically, the fastest growth takes place in China and Asia Pacific, with year-on-year growth rates of 30 percent and 28 percent, respectively. These are also the world's largest smartphone shipment regions with a mix of 4G phones, including 4G flip phones, as well as 5G units.

As important tools for mobile application services, mobile phones have been upgraded with the continuous development of technology. Larger screens, high-definition display, multi-core CPU, multi-mode and multi-frequency functions are among key upgrades.

Alongside the growth in smartphones is a parallel one for peripheral products or accessories, as well as for mobile phone components. Accessories are more varied and include wired, wireless, and portable chargers; mobile phone cases; and screen protector films. True wireless earbuds and noise-cancelling headphones are among popular smartphone accessories. Mobile phone components include LCD screens for Apple iPhone as well as Android phones.

Mobile phone chargers

Besides wired, wireless and portable chargers, other charging products available for sourcing are: charging heads, charging cables, and power banks. Charging heads have developed from being able to charge only a single electronic device to now having the ability to charge multiple devices simultaneously. Power bank capacities have increased from less than 1000mAh to 20000mAh or higher.

Wireless chargers, valued at $9 billion in 2020, will increase to $13.4 billion in 2025 at a CAGR of 8.1 percent. The number of wireless charging enabled smartphones is expected to exceed 2.2 billion units by 2026, with Asia Pacific and Western Europe accounting for the highest shares.

Fast chargers are on an uptrend, aided by technology development in the form of GaN switches and flat-panel transformers. The fast chargers market was valued at $15.5 billion in 2022 and is forecast to have a CAGR of 40 percent in the next three years.

 Smartphone cases

The smartphone case market is expected to reach $990 million by the end of 2026 with a CAGR of 5.4 percent from 2021 to 2026. In 2022, the global demand for smartphone cases is forecast to exceed 1.49 billion units.

Mobile phone case designs will tend to follow consumer preferences, allowing for personalization to make their phones look unique. Since drop resistance is also a key demand of users, this will also be a product differentiator among mobile phone cases.

Screen protector films

The smart phone screen protector film market continues to grow with the development of mobile phones. As smartphone screens get bigger, the cost of replacing phone screens is correspondingly higher and screen protector films become important peripheral products. Smart phone screen protector films are constantly evolving. In addition to basic protection features like making units water-resistant, screen protector films are now of varied types, including privacy or anti-peeping films, matte films, gaming films, and anti-blue light films.

LCD screens

The increase in 5G smart phone shipments is driving the steady growth of LCD screens as mobile phone components. Early in 2022, 5G phones, including Android smartphones, surpassed sales of 4G models for the first time, accounting for 51 percent of devices sold. As such, smart phone LCD screen purchases by OEMs are forecast to remain stable.