The global feature phone market size was valued at USD 7.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of -10.6% from 2021 to 2028. This can be accredited to the rising adoption of smartphones in developing countries such India, Malaysia, and Japan and other developed countries. Recently adoption of smartphones is growing among users, but smartphones have difficult user interference for usage. So, the older population or people who are using a phone for the first time, require a phone that is easy to use and understand. Thus, these factors make this feature phone a compatible choice for the users. Additionally, the lower purchasing power of users in developing regions and the tough build of feature phones are some factors that make this phone popular among users.
Rising economic uncertainty and unemployment rates due to the COVID-19 pandemic continue to change customer buying patterns towards feature-rich and affordable products such as feature phones. Furthermore, feature phones offer numerous benefits over smartphones in spite of the noticeable limitations. Such as they offer a longer battery life and are very affordable. The feature phones have a lot of buyers in top-tier urban users and developed markets. These phones are frequently used as companion phones in the field or on travel as simpler communication devices and also due to their extensive battery life.
Increasing investment by key players in the latest technologies to launch innovative and affordable products is further expected to increase the industry sales. However, the rising adoption of smartphones is hampering the market. Owing to the COVID-19 pandemic the demand for feature phones has been steady.
The mobile phones in a classical sense type segment dominated the market and accounted for the largest revenue share of more than 85.0% in 2020. This growth is attributed to the increasing demand for such mobile phones. Mobile phones in a classical sense are affordable and have longer battery life coupled with easy-to-use features. Furthermore, growing demand for mobile phones in a classical sense from Africa, Bangladesh, and other developing nations due to their affordability may further expand this type segment during the forecast period. Also, these inclinations of consumers towards this type of feature phone are anticipated to continue in the coming years.
The dumb phones type segment is expected to register a slower growth rate from 2021 to 2028. This can be attributed to the latest technological advancements affecting feature phones. Besides with economical unlimited data, the lower price tag of these dumbphones and demand from emerging regions around the globe may support the segment during the forecast period.
The offline distribution channel segment dominated the market and accounted for the largest revenue share of more than 80.0% in 2020. The segment includes specialty stores, hypermarkets, supermarkets, independent retail stores, etc. Outline of the organized retail sector has guaranteed better visibility of consumer electronic products. Additionally, the growing organized retail sector in emerging economies such as India, Bangladesh, and Brazil is further expected to enhance the demand for feature phones during the forecast period.
The online segment is expected to register the highest CAGR from 2021 to 2028. This can be attributed to its growing usage. Prominent feature phones manufacturers are tying up with online retailers with an objective to reach out to the new buyer’s base. Similarly, an upsurge in sales of feature phones primarily through e-commerce platforms such as Amazon and Walmart or company’s own websites are further projected to propel the growth of the online distribution channel segment during the forecast period.
Asia Pacific dominated the feature phone market and held the largest revenue share of more than 35.0% in 2020. This can be attributed to the rising demand for feature phones from developing countries such as India and Bangladesh. Moreover, the growing middle-class working population in this region may also expand this market. This expansion can be attributed to the presence of major feature phone manufacturers, such as Samsung Electronics Co., ZTE Corporation, and Micromax in the region.
In Middle East and Africa, the market is anticipated to show growth from 2021 to 2028. This can be endorsed to the adoption of these feature phones in emerging nations owing to its affordability and long battery life of this phone. Additionally, the growing demand for dumbphones from this region is anticipated to upkeep the market size.
Market players are focusing on introducing new advanced and affordable products to meet increasing demand from developing nations. Moreover, key players are collaborating with small players to increase their expansion in the market along with investing in new manufacturing plants to increase their production capacity. Samsung leads the market in India by offering various models at an affordable rate coupled with rigidity. Some of the prominent players in the feature phone market include:
|
Report Attribute |
Details |
|
Market size value in 2021 |
USD 6.7 billion |
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Revenue forecast in 2028 |
USD 3.1 billion |
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Growth Rate |
CAGR of -10.6% from 2021 to 2028 |
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Base year for estimation |
2020 |
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Historical data |
2017 - 2019 |
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Forecast period |
2021 - 2028 |
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Quantitative units |
Revenue in USD million and CAGR from 2021 to 2028 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Type, distribution channel, region |
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Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
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Country scope |
U.S.; Germany; U.K.; France; India; Bangladesh; South Africa; Brazil |
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Key companies profiled |
Samsung Electronics Co. Ltd.; LG Electronics Inc.; Toshiba Corporation; Haier Electronics Group Co. Ltd.; Nokia Corporation; ZTE Corporation; Micromax |
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Customization scope |
Free report customization (equivalent up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope. |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Million Insights has segmented the global feature phone market report on the basis of type, distribution channel, and region:
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