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IDC Sees 2.5B Connected Devices Unit Sales by FY19

March 20, 2015 9:03 AM EDT

According to a new forecast from the International Data Corporation (IDC) Worldwide Quarterly Smart Connected Device Tracker, the combined total market of smartphones, tablets plus 2-in-1s, and PCs is set to grow from 1.8 billion units in 2014 to 2.5 billion units in 2019. During that time, smartphones will grow to represent the overwhelming majority of total smart connected device (SCD) shipments, dwarfing both tablets and PCs in terms of shipment volumes.

As recently as 2010, PCs still made up the lion's share of the total SCD device market, with the combined desktop and notebook categories accounting for about 52.5% of shipments versus 44.7% for smartphones and 2.8% for tablets. By 2014, smartphones had grown to represent 73.4% of total shipment, while PCs had slipped to 16.8% and tablets had increased to 12.5%. By 2019, IDC expects the distribution to be 77.8% smartphones, 11.6% PCs, and 10.7% tablets.

"Smartphone growth continues at an astounding pace, while growth in the PC and tablet markets is proving to be more challenging," said Tom Mainelli, Program Vice President for Devices at IDC. "There are clearly some bright spots in both markets: Detachable 2-in-1s show strong growth potential in tablets, and convertible notebooks are beginning to gain traction in PCs. But ultimately, for more people in more places, the smartphone is the clear choice in terms of owning one connected device. Even as we expect slowing smartphone growth later in the forecast, it's hard to overlook the dominant position smartphones play in the greater device ecosystem. And it's not likely that anything—including wearables—will unseat it from this dominant position anytime soon."

"Not all smartphone growth will be equal. Going forward, the future of smartphones lies in emerging markets, sub-US$100 price points, and phablets," said Melissa Chau, Senior Research Manager for Mobile Devices. "In 2014, 73% of smartphones were shipped to emerging markets, 21% were priced below US$100, and 12% had screen sizes between 5.5 and <7 inches. By 2019, these categories will all increase – 80% of smartphones will be shipped to emerging markets, 35% will be priced below US$100, and 32% will have a 5.5--<7-inch screen size. So far the market has very much focused on premium models and brands, but emerging market consumers are looking for greater value from a single device."

Worldwide Smart Connected Device Forecast Shipments, Market Share, Growth, and 5-Year CAGR(units in millions)

Category

2014ShipmentVolume

2014MarketShare

2014YoYGrowth

2019ShipmentVolume*

2019MarketShare*

2019YoYGrowth*

5-YearCAGR

Smartphone 1,300.42 70.7% 27.7% 1,959.1 77.7% 4.6% 8.5%
Tablets plus 2-in-1 229.7 12.5% 4.5% 269.4 10.7% 2.6% 3.2%
Portable PC 174.28 9.5% -2.3% 170.4 6.8% -0.3% -0.4%
Desktop PC 133.85 7.3% -2.1% 121.0 4.8% -1.0% -2.0%
Total 1,838.26 100% 18.3% 2,520.0 100% 3.8% 6.5%

Source: IDC Worldwide Quarterly Smart Connected Device Tracker, March 20, 2015

*forecast data

In addition to the table above, an interactive graphic illustrating worldwide shipments of smart connected devices (desktop PCs, portable PCs, tablets plus 2-in-1s, phablets, and smartphones) for 2014 and 2019 is available here. Instructions on how to embed this graphic into online news articles and social media can be found by viewing this press release on IDC.com.



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