In the telecommunication industry, 5G is the fifth-generation technology for broadband cellular networks used by cellular companies as a successor to 4G networks to offer better connectivity to most cellphones. It is the latest development in the telecommunication industry, offering wireless technology for higher multi-Gbps peak data speed while bringing everything & everyone together. It also brings massive network capacity, negligible latency, and improved availability, ultimately offering an unparalleled experience in terms of performance & efficiency.
As the penetration of the Internet & smartphones is escalating swiftly, the demand for 5G technology is increasing. In different connected services, 5G supports, mission-critical communication, upgraded mobile broadband, and the complex IoT are the most significant aspects of this technology. Perhaps it is one of the many reasons why 5G exemplifies substantial potential to support & provide life-changing experiences to customers using services in the future.
The Latin America 5G Smartphone Market is projected to grow at a CAGR of around 8% during the forecast period, i.e., 2022-27. The market is driven by rapidly increasing technological advancements & growing demand for facilities like ultra-high bandwidth, ultra-low latency, & massive connectivity for the users. It, in turn, is stimulating the demand for 5G smartphones and generating lucrative opportunities for the leading players to increase their production & distribution capacities and cater to the rising needs throughout Latin America.
Besides, the increasing requirement for high-speed data connectivity for integrated IoT (Internet of Things) applications like smart home devices & energy management are the other aspects backing the adoption of 5G smartphones. Since these smartphones are based on increased data transfer rate, technology, and designs, aggressive pricing, & features like high compatibility with other smart devices, more people are attracted to using smartphones supported by 5G technologies. Hence, such factors are positively influencing the market growth.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Country Covered||Brazil, Chile, Argentina, Rest of Latin America|
|Key Companies Profiled||Samsung, Apple, Vivo, Xiaomi, Motorola, Sony, Oppo, Google, Lenovo, and OnePlus.|
|Unit Denominations||USD Million/Billion|
Moreover, as more businesses & industries are moving toward digitalization and procuring connected devices, such organizations have a lot to attain from 5G technologies. In fact, it is anticipated to be implemented as a catalyst for Industry 4.0 & digital transformation. Hence, industries like manufacturing, seaports, mining, airports, warehouses, & energy plants, among others, are likely to emerge as prominent consumers for 5G technology-based smartphones, bringing cutting-edge solutions for private networks.
Furthermore, a swift elevation in the integration of advanced technologies like Augmented Reality (AR) & Virtual Reality (VR) into different verticals like retail & automotive is also paving the way for the adoption of 5g smartphones. It is principally to enhance the overall graphical electronic devices performance to improve consumer experience using 5G smartphones. Additionally, the rapidly increasing & robust deployment of 5G networks, services, & infrastructure upgradation across different countries in the region to offer enhanced services to customers is emerging as a prominent aspect fueling the demand for 5g Smartphones through 2027.
Based on Operating System:
Here, iOS systems are anticipated to make significant contributions to the overall expansion of the Latin America 5G Smartphone Market during the forecast period. It owes principally to the growing consumer preference toward iOS devices owing to their exceptional user experience, designing & perfection in a crucial feature like the 5G user experience, allowing the smartphones to operate at high speed without experiencing meltdowns or shutdowns.
Besides, while conducting 5G tests on mm Wave, it was found that iOS devices are more resistant than Android devices and do not go extremely hot until automatically shuts down. Hence, with such awareness among consumers entwined with demonstrating iOS smartphones has a status symbol, the market is set to witness an upswing in the coming years.
On the geographical front, the Latin America 5G Smartphones Market expands across:
Brazil is anticipated to dominate the market with the largest share during the forecast period. The dominance attributes to the growing government focus on installing 5G networks across the country due to a swift rise in smartphone & internet penetration, augmenting the demand for fast & reliable internet & communication services.
Besides, a sudden price drop for smartphones has also boosted the sales of these electronics, directly influencing the demand for 5G. In addition, the active participation of the government through collaborations like that with Ericsson to set up an innovation hub in Sao Paulo to research the IoT (Internet of Things) & 5G shall also stimulate the development of 5G infrastructure & promulgate 5G smartphones in Brazil.
Across the country, prominent companies like Samsung have an extensive range of 5G-enabled smartphone models, certified by Anatel (Brazilian telecommunications agency), with 25 types of smartphones approved. The manufacturer is followed by other brands like Motorola with 14 models & Apple with 9 variants, giving competition in the industry.
Earlier in July 2022, Brazil offered access to 5th-generation mobile networks for the first time, offering 5G coverage to Brazil's capital, Brasília. Other cities that are state capitals were planned to get these implementations by July 31 but witnessed a delay of 60 days. Now, 5G is set to be available across other locations in Brazil by the end of September 2022. Other regions that are not state capitals shall observe gradual deployment by 2029.
On the other hand, Mexico shall also demonstrate momentum for the 5G Smartphone Industry and generate lucrative opportunities for the prominent players in the coming years. This growth is likely to be driven by the growing government focus on bringing digitalization to the country, hinting toward a sooner deployment of 5G networks across Mexico.
Leading player Ericsson's incorporation with Telcel plans to launch their first commercial 5G network in Mexico, which is said to be the largest throughout Latin America, covering 15 cities with more than 1,500 radio base stations. The leader reveals that 5G shall deploy across the country with the 5G Non-standalone (NSA) mode in the initial phase. It would be supported by the existing infrastructure of the commercially launched 4G LTE network, by Telcel, in 2018, enabling a faster, more convenient, & efficient 5G deployment.
As the cases of cybersecurity risks are rising rapidly, especially with the quick implementation of 5G technology, users are becoming increasingly conscious about data breaches, frauds, and other unethical activities.
Besides, since 5G offers a direct connection to the wireless network, it is more vulnerable to cyber threats & attacks. Hence, owing to security flaws and their likely exploitation by attackers to develop advanced attacks, it might restrain the fledged adoption of 5G-enabled smartphones across the region and hamper the market growth in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Latin America 5G Smartphone Market is projected to grow at a CAGR of around 8% during 2022-27.
A. Rapidly increasing vulnerabilities to cyberattacks using advanced technologies is acting as a prominent factor that might restrain the fledged growth of the Latin America 5G Smartphone Market through 2027.
A. The iOS operating model is anticipated to emerge as an area of remunerative opportunities for the leading players in the Latin America 5G Smartphone Market during the forecast period.