Boom in Asia Pacific Mobile Phone Accessory Market Projected to Continue as Rising Disposable Income Allows Consumers to Explore Premium Products
Rising disposable income and proliferation of e-commerce websites in Asia Pacific are expected to contribute to higher sales of mobile phone accessories in the next decade, according to a new research report by Future Market Insights (FMI).
Asia Pacific Excluding Japan (APEJ) is the largest market globally, accounting for US$ 27.74 Bn in 2014; the global market was valued at US$ 58.55 Bn. FMI expects the Asia Pacific Excluding Japan mobile phone accessories market to reach a valuation of US$ 29.82 Bn by the end of 2015.
FMI has segmented the APEJ market into China, Indonesia, India, South Korea, and Rest of APEJ. China accounted for nearly half of the APEJ market value share in 2014, and FMI expects it to reach US$ 14.95 Bn by end of 2015.
China’s huge consumer base, coupled with rising disposable income and urbanisation trend are fuelling the demand for mobile phone accessories. Protective cases remain the sought-after accessory in China; FMI expects protective case segment to reach US$ 3,289.5 Mn in 2015, up from 3,053.4 Mn in 2014.
Power Banks Gain Traction as Battery Life Remains a Concern
As is the case in the West, consumers in China are looking for ways to address concerns about low battery life, considered to be the Achilles’ heel of today’s smartphones. Power banks are gaining traction in the China mobile phone accessory market; FMI expects power banks to expand at 11.2% CAGR through 2025.
North America mobile phone accessories market was valued at US$ 9,643.1 Mn in 2014; FMI expects it to witness Y-o-Y growth of 4.54% in 2015 over 2014. The U.S. dominates the North America mobile phones accessories market, accounting for 8,269.7 Mn in 2014, out of the total US$ 9,643.1 Mn.
Protective cases remain the sought-after accessory in the U.S. as well, accounting for nearly 20% of the market currently. Portable speakers represent the least lucrative product segment, representing nearly 6% of the market. Like China, power banks are expected to amplify at the highest growth rate.
Sales of mobile accessories is fast gaining traction in the U.S., owing to favourable conditions, such as high smartphone ownership and fast internet speeds. Sales through online stores represented 28% of market share in 2014; FMI expects it to increase to 33% by 2025.
The Latin America mobile phone accessories market is expected to witness a CAGR of over 7% through 2025. The key countries covered by FMI in its research report are Brazil, Mexico, Argentina, and Rest of Latin America.
Brazil is the most lucrative market for mobile phone accessories in Latin America, accounting for a market share of nearly 35% in 2014. FMI expects Brazil mobile phone accessories market to witness an incremental opportunity of US$ 150 Mn in 2015 over 2014.
Western Europe mobile phone accessories market is expected to expand at a healthy single-digit CAGR during the forecast period 2015-2025. In terms of absolute $ opportunity, the market in the region is projected to account for an incremental value of US$ 6,033.5 Mn between 2014 and 2025.
United Kingdom is the most lucrative market for mobile phone accessories in Western Europe. The market in U.K. is expected to witness a Y-o-Y growth of approximately 4.3% in 2015 over 2014.
Other markets analysed by FMI in its research report are Germany, France, Italy, and Rest of Western Europe. The Western Europe mobile phone accessories market is expected to reach US$ 14.32 Bn by the end of 2025.