A study by Future Market Insights has revealed that the mobile phone accessories market is likely to grow at a CAGR of 6.7% through 2031.
The study also revealed that smartphone shipments increased from 1.1 billion units in 2013 to 1.2 billion units in 2014, with around 45% of these being shipped to China.
In line with these increasing trends, FMI expects the rising smartphone ownership will create secondary demand for products that are not usually included in the box, such as power banks and protective cases.
They say that the inability of modern-day smartphone batteries to withstand heavy usage has led to robust demand for power banks in particular. Owing to this increased demand, the power bank segment is expected to gain 230 BPS during the forecast period and further increase its market share.
A significant demand for products and accessories was seen in Asia, along with a spate of mergers and acquisitions.
FMI’s analysis has also revealed that compared to multinational brands, local players are offering fewer mobile accessories in their offerings in a bid to keep prices competitive.
Owing to this, a majority of consumers are buying mobile accessories from the local market or from eCommerce sites.
The study goes on to report that mushrooming of multi-brand distributors and retailers has given mobile phone accessory manufacturers the opportunity to target a more extensive customer base.
Furthermore, sales of mobile phone accessories through e-tailers is also contributing to the growth of the market globally. FMI says it expects both multi-brand stores and eCommerce stores to expand during the forecast period.
While FMI maintains a positive outlook on the global mobile phone accessories market, there are a few factors mentioned that are said to possibly restrain the growth during the forecast period.
The lack of control and monitoring of pirated accessories is said to be eating into the revenue share of key stakeholders in the market. Pirated mobile accessories are offered at much lower prices than the original products, making it difficult for manufacturers to compete with them.
There was also found to be a lack of standardization in technology and components used for manufacturing mobile accessories. Undefined standards in the market can lead to high product and price differentiation, possibly further preventing the growth of the mobile accessories market.
In closing, it was clear from the study that diversification of product portfolio and product advancement is one of the major trends in the global mobile phone accessories market. It is continuing to grow due to its range and scope.
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