Tablet Market

Tablet Market: Apple Retains Ground in a Rapidly Evolving Landscape: Global Industry Analysis and Opportunity Assessment, 2016-2026

According to a new report, global tablet shipments are projected to increase at 9.1% CAGR through 2026. In terms of value, the global tablet market is expected to reach nearly US$ 600 Bn by 2026.

Nearly 193 million iOS tablets were shipped in 2016, whereas Android and Windows collective shipments were valued at 226 million. However, during the forecast period 2016-2026, Android tablets will witness the highest growth rate, owing to their low price and popularity, especially in emerging markets. In 2017, total tablet shipments are estimated to surpass 455 Mn units.

Global demand for tablets is going through a period of sluggish growth, as large screen smartphones continue to find favour among consumers. However, commercial segment is expected to offer the next wave of growth to vendors, as businesses move away from PCs to detachables.

Apple Inc. remains the largest player in the global tablet market. It held a revenue share of nearly 26% of the global market in 2016. Samsung is the second biggest player in the market with over 15% market share. Micromax is the third largest player, while the rest of the market share is dominated by the likes of Lenovo, Asus, Xiaomi, Acer, and Huawei.

Detachable Tablets: The Next Growth Opportunity

Slate tablets shipments were pegged at nearly 243 million units in 2016. While slate based tablets will continue to account for higher sales than detachables, the latter will grow at a higher CAGR during the forecast period. Detachables are witnessing increasing demand from the IT sector, as PCs are being slowly phased away. Detachable tablet sales volumes are projected to increase at 10.8% CAGR vis-à-vis 7.7% CAGR of slate tablets.

The growing proliferation of laptop-tablet hybrids is eating into the markets share of tablets. The ever-increasing size of smartphones is not helping the cause of the tablet industry.

Another key factor that can impede the growth of the market is low upgrade cycle. As is the case in the smartphone segment, consumers are not showing the same level of eagerness to upgrade their existing tablets. Long replacement cycles can restrain demand for new tablets during the forecast period.

Screen size is an important buying decision for consumers, and as above 6-inch smartphones become ubiquitous, tablet vendors are finding it difficult to promote size as their USP.

In 2016, over 191 Mn units of tablets less than 8 inch in size were shipped globally, whereas sales of above 8 inch tablets were pegged at over 227 million units. In terms of both value and volume, less than 8-inch tablets are projected to witness a higher CAGR during the forecast period.

The Silver Lining for Tablet Vendors

tablet market Share

Although 2016 was a sluggish year for the global tablet market, it is expected that demand will pick up in the latter half of 2017 and 2018. China and India are anticipated to remain key to the future growth of the tablet market, as a significant percentage of consumers are yet to make the transition from a ‘mobile phone’ to a smartphone.

Bigger display sizes can be a luring factor for brands, as in the smartphone segment, above 6-inch phones come with a hefty price tag. Consumers in Tier II and Tier III cities in India use their phones to watch movies and videos in the absence of a PC. Catering to this consumer segment can open up opportunities for vendors; however, vendors should keep in mind that this demographic is extremely cost-sensitive. Owing to lower profit margins, vendors will have to focus on high-volume strategy to gain significant gains.

The report “Tablet Market: Global Industry Analysis and Opportunity Assessment, 2016–2026” presents an outlook of the global tablet market for the period 2016 – 2026. Our primary objective in creating this report is to offer updates on market opportunities in the global tablet market. In this report, we have focussed on market performance and identified the key factors and trends influencing the market across the different segments and regions of the global tablet market.

Report description

To assess market opportunities and to analyse market performance, we have divided this report on the global tablet market into five sections based on the market segmentation – by product type, by operating system, by screen size, by end use, and by region – and have provided an analysis of the global tablet market in terms of market value and volume for the period 2016 – 2026. The report begins with an overview of the global tablet market and features our analysis of the key trends, drivers, and restraints from the supply and demand perspectives. Impact analysis of key growth drivers and restraints based on the weighted average model is included to provide pertinent decision-making insights. In the subsequent sections, we analyse the global tablet market on the basis of product type, operating system, screen size, end use, and region and provide a comprehensive market forecast in terms of volume and value for the next 10 years, focussing on a micro-level analysis of segmental growth across the different regions of the global tablet market.

In the final section of the report, we have included a competitive landscape of the global tablet market to provide a dashboard view of key market players based on categories of providers across the global tablet market value chain, their presence in the global tablet market portfolio, and key differentiators. This section provides detailed information on the market performance of leading players operating in the global tablet market, along with an analysis of their short-term and long-term strategies.

Research methodology

To deduce market size of the global tablet market, we have considered the average selling price of various types of tablets across key geographies. Furthermore, data points such as regional split and market split by segments and qualitative inputs from primary respondents have been incorporated to arrive at suitable market estimates. The forecast presented in the report on the global tablet market evaluates the total revenue that is expected to be generated across the global tablet market over the forecast period (2016–2026). While developing the market forecast, we have begun by sizing up the current market, which forms the basis for forecasting how the global tablet market is anticipated to take shape during the forecast period. Given the characteristics of the market, we have triangulated the gathered data on the basis of various analyses based on both supply side and demand side drivers and various other dynamics of the global tablet market.

In the global tablet market report, we have conducted the forecasts not only in terms of CAGR, but we have also analysed the market on the basis of key parameters such as Year-on-Year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities in the global tablet market. The different segments of the global tablet market have also been analysed in terms of Basis Point Share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important to identify the many key trends governing the global tablet market.

The report on the global tablet market also presents the overall market revenue forecast in terms of absolute dollar opportunity, usually overlooked while forecasting the market. Absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve as well as to identify potential resources from a sales perspective in the global tablet market. Further, in order to understand key growth segments in terms of their growth and performance in the global tablet market, we have developed a market attractiveness index to help providers identify real market opportunities.