Rising smartphone ownership and mushrooming of multi-brand distributors and retailers is driving the global mobile phone accessories market, likely to grow at a CAGR of 6.7 percent through 2031 according to a report by Future Market Insights.
The mobile phone accessories market includes protective cases, headphone/earphones, charger, battery, memory card, power bank, portable speakers, and ‘other’ products.
The power bank segment is expected to gain 230 BPS and see the highest CAGR of the sector, growing at 6.7 percent during the 2021-2031 forecast period. There is robust demand for power banks, due to the inability of modern-day smartphone batteries to withstand heavy usage.
There is also a robust demand for protective cases, with this segment accounting for one-fifth of the overall market in 2014. The demand is expected to remain strong through the 2021-2031 forecast period.
Smartphone sales are buoyant in emerging economies, such as China, India, Brazil, and Indonesia. Smartphone shipments increased from 1.1 Bn units in 2013 to 2.1 Bn units in 2014, with around 45 percent of these shipped to China. Rising smartphone ownership can be attributed to the secondary demand for products that are not usually included in the box, such as power banks and protective cases.
In addition to multi-nation brands, the smartphone segment in emerging nations also includes regional players, such as Xiaomi and Micromax. These local players offer fewer mobile accessories in their offerings in a bid to keep the prices competitive. Owing to this, a majority of consumers buy mobile accessories from the local market or from e-commerce sites. An increase in the sales of smartphones made by local manufacturers is expected to provide an impetus to the mobile phone accessories market during the forecast period.
Mushrooming of multi-brand distributors and retailers has given mobile phone accessory manufacturers the opportunity to target a larger customer base. Furthermore, sales of mobile phone accessories through e-tailers is also contributing to the growth of the market globally. According to the report, both multi-brand stores and e-commerce stores are expected to expand during the forecast period, which in turn, is anticipated to provide an impetus to the global mobile phone accessories market.
Although FMI maintains a positive outlook on the global mobile phone accessories market, there are factors that can restrain the growth during the forecast period.
The lack of stringent checks on pirated accessories is eating into the revenue share of key stakeholders in the market. Pirated mobile accessories are offered at a fraction of the price of original products, making it difficult for manufacturers to compete with them.
Currently, there exists a lack of standardisation in technology and components used for manufacturing mobile accessories. Undefined standards in the market lead to high product and price differentiation, this may hinder the growth of the mobile accessories market to some extent.
Read the full report at futuremarketinsights.com/