Strong Growth Expected in the Smartphone Market for 2025
The smartphone market is gearing up for a robust year in 2025, driven by several key factors including product portfolio refreshes from leading handset manufacturers, an increasing consumer interest in innovative artificial intelligence (AI) features, and a growing demand for affordable 5G devices.
According to the latest data from IDC, the global smartphone market achieved a significant milestone, reaching 1.21 billion units shipped in 2024, reflecting a 4% increase compared to 2023. This growth trajectory highlights the resilience and adaptability of the smartphone industry in meeting evolving consumer needs.
IDC reports that the sales of affordable Android smartphones are witnessing rapid growth in emerging markets, while premium markets are enthusiastically embracing the introduction of new AI features. As we move into 2025, the adoption of 5G technology is anticipated to accelerate across Africa, further enhancing the connectivity landscape.
The IDC forecast indicates a notable surge in 5G investment throughout Africa, encompassing spectrum auctions, pilot programs, and commercial launches. With smartphone manufacturers increasingly leveraging the latest systems on chips (SoCs), there is a rising availability of affordable 5G-ready smartphones in the market. This shift is setting the stage for accelerated 5G adoption across the continent in 2025. IDC projects a 13.2% growth in global sales of 5G-powered devices in 2025, following a nearly 16% growth in 2024.
Furthermore, the advent of Generative AI is poised to drive the next wave of smartphone innovation, with chipmakers like MediaTek already integrating next-generation generative AI capabilities into their SoCs. Consumers can look forward to a range of exciting AI-driven features becoming commonplace in smartphones. These include AI-generated subtitles for video calls, real-time translations across multiple languages, and AI-assisted note-taking that offers summaries and proofreading. The productivity gains from these innovations in classrooms, workplaces, and personal life are expected to be substantial. According to IDC, AI-powered devices are projected to be the fastest-growing segment within the smartphone category, with growth expected to reach an impressive 73% in 2025.
By 2028, global shipments of generative AI smartphones are anticipated to reach 912 million units, representing a remarkable compound annual growth rate (CAGR) of 78.4% from 2023 to 2028. This growth trajectory underscores the transformative impact of AI technology on the smartphone industry and its potential to redefine user experiences in the coming years.
