A study by Future Market Insights revealed that the mobile phone accessories market is expected 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, of which around 45% were shipped to China.
In line with these rising trends, FMI expects growing smartphone ownership to create secondary demand for products that aren’t typically included in the box, such as power banks and protective cases.
They say the inability of modern smartphone batteries to withstand heavy use has led to high demand for power banks in particular. Due to this increased demand, the power bank segment is expected to gain 230 BPS over the forecast period and further increase its market share.
Strong demand for products and accessories was seen in Asia, along with a wave of mergers and acquisitions.
FMI’s analysis also revealed that compared to multinational brands, local players offer fewer mobile accessories in their offerings in an effort to keep prices competitive.
For this reason, the majority of consumers purchase mobile accessories from the local market or from e-commerce sites.
The study goes on to indicate that the proliferation of multi-brand distributors and retailers has given manufacturers of mobile phone accessories the opportunity to target a wider customer base.
Additionally, sales of mobile phone accessories through online retailers are also contributing to the growth of the market globally. IMF says it expects multi-brand stores and e-commerce stores to grow over the forecast period.
Although IMF maintains a positive outlook on the global mobile phone accessories market, some mentioned factors may possibly restrain the growth during the forecast period.
Lack of control and monitoring of pirated accessories would eat away at the revenue share of major players in the market. Pirated mobile accessories are offered at much lower prices than the original products, which makes it difficult for manufacturers to compete with them.
It also turned out that there was a lack of standardization in the technology and components used to manufacture mobile accessories. Undefined standards in the market can lead to strong product and price differentiation, possibly further impeding the growth of the mobile accessories market.
In conclusion, it is clear from the study that product portfolio diversification and product advancement is one of the key trends in the global mobile phone accessories market. It continues to grow due to its range and reach.