Global Phone, Server Shipments To Grow Over Next Five Years
The US/China trade talks may be in limbo, but technology marches on regardless, with Digitimes researchers estimating buoyant global growth in the smartphone and server sectors.
New research has revealed that global smartphone shipments are expected to grow at around 3.8 percent during the next five years, largely driven by replacement demand for entry-level smartphones in emerging markets and commercialisation of 5G networks.
The report says smartphone shipments will start recovering in 2020, after two consecutive years of declines in 2018-2019, and with shipments expected to reach more than 1.5 billion units in 2022 and 1.6 billion units in 2024.
Samsung, Apple and Huawei are poised to serve as the top three smartphone vendors in 2020, while Xiaomi, Oppo and Vivo will rank fourth, fifth and sixth.
Accumulated shipments by the top six vendors are estimated to grow 5.1 percent on year to more than one billion in 2020. Shipments of 5G-enabled smartphones will be less than 10 million units in 2019 but should expand nearly 20-fold to 175 million units in 2020.
Worldwide server shipments will also see an average growth of 6.5 percent from 2019-2024, say the researchers. While the server industry is having a weak 2019, due to high inventory levels at clients, global server shipments are expected to grow around five percent in 2020, as clients’ inventory digestion has almost reached an end.
Major factors driving the server market over the next five years will be demand from enterprises pushing for digital transformation, the growing popularity of AI applications, and cloud datacentre companies, which are eagerly promoting hybrid cloud systems.
Surging 5G data transmission volumes are also expected to boost server demand from 2023.