Tablet Market Surpass to Gain Valuation of US$600 bn by 2026 | FMI
The global market for tablets is expected to reach an overall valuation of US$600 bn by the end of the given forecast period of 2016 to 2026. This growth is expected to be achieved with the help of a strong CAGR of 9.1% over the same period of forecast. Slate tablets sales were clocked at almost 243 mn units in 2016. While the tablets with slate are expected to continue this high growth rate, detachable tablet are projected to grow with a higher CAGR over the course of the forecast period. Detachable tablet shipment volumes are estimated to grow at an impressive CAGR of 10.8% compared to 7.7% of CAGR to be shown by slate tablets.
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The demand for tablets across the globe is currently experiencing a slow growth, as smartphones with large screens are being preferred more by the customers. However, the commercial sector is projected to provide the next wave of development to the market vendors, as the businesses move further from PCs to detachables.
Concentrating on Emerging Markets to Open up New Avenues for Global Tablets Market
Even though, 2016 was found to be a year with sluggish growth for global tablet market, the overall demand is projected to grow in the second halves of 2017 and 2018. India and China are expected to play an important role in driving the overall growth of the global tablets market as there is a considerable percentage of population in these emerging markets that are yet to make a transition from a cell phone to a smartphone.
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Larger display sizes can be luring reason for brands, as in the smart phone segment, phones with display of more than 6 inches come with a big price tag. Customers in the Tier II and Tier III cities of India primarily use their phones to watch videos and movies in the absence of a personal computer. Serving this segment of consumers can open up many lucrative opportunities for market vendors.
Low Upgrade Cycle to Hamper Market Growth
The increasing proliferation of laptop-tablet hybrids is taking up most of the market share of tablets. The ever-growing size of smartphones across the globe is also not helping the global tablet industry in any way.
Another important impeding factor for the growth of the global market for tablets can be attributed to the low upgrade cycle. Customers usually do not upgrade their tablets with same level eagerness as they show about their smartphones. In addition, longer replacement cycles can also slow down the demand for new tablets in the market in the coming years of forecast.
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