Telephony - Nigeria | Statista Market Forecast

In 2024, the revenue in the Telephony market in Nigeria amounts to ₦US$10.3bn.
It is projected to experience an annual growth rate of 6.34% (CAGR 2024-2029).
When compared globally, China generates the highest revenue with ₦US$109.5bn in 2024.
This translates to per person revenues of ₦US$45.42 in Nigeria in 2024, considering the total population figures.
Looking ahead, the volume in the Telephony market is expected to reach 51.4m pieces by 2029.
Additionally, a volume growth of 1.2% is anticipated in 2025.0.
The average volume per person in the Telephony market is forecasted to be 0.2pieces in Nigeria in 2024.
The telephony market in Nigeria is experiencing rapid growth due to increasing smartphone penetration and improved network infrastructure.

Definition:

The Telephony segment refers to the devices that enable voice communication, including smartphones, landline phones, and feature phones. The technology used in telephony continues to advance, with innovations in areas such as wireless connectivity, improved battery life, and larger displays. The introduction of 5G technology has the potential to revolutionize the telephony market by offering faster and more reliable connectivity, lower latency, and increased capacity.

Structure:

These are specific product categories within the Telephony segment, including:

Smartphones: These are mobile phones that offer advanced capabilities beyond basic voice communication, such as internet access, social media, and multimedia capabilities.
Feature Phones: These are basic mobile phones that offer basic voice and texting capabilities but lack advanced features such as internet access and multimedia capabilities.
Landline Phones: These are traditional telephone devices that are connected to a landline telephone network and typically require a physical connection to a wall socket.

Additional Information:

The market comprises revenue, average revenue per capita, volume, average volume per capita and price. Figures are generated through both online and offline sales channels and include spending by consumers (B2C). Key players in the market are companies like Apple, Samsung, Huawei, HP, Dell, and Sony. These companies are leaders in their respective segments and are known for their innovative products, brand reputation, and extensive distribution networks. For more information on the data displayed, use the info button right next to the boxes.

Landline phones
Feature phones
Smartphones

Tablets and other larger devices with SIM card slots
Radio equipment such as interphones or walkie-talkies
Additional devices for telecommunication sold separately (e.g., phone chargers, earphones)

The Telephony segment experienced a slight revenue decline in 2022, primarily due to market saturation and lower prices on 5G phones. Furthermore, many consumers have been delaying device upgrades due to financial concerns or future uncertainty. As a result, the global Telephony segment revenue for 2022 was US$473 billion, indicating a 5.4% drop from 2021.

The Telephony segment comprises major technology companies, including Apple, Samsung, Huawei, Xiaomi, and Google. With the vast majority of the world's population now owning smartphones, the demand for new smartphones is plateauing, resulting in intensified competition among players. In order to gain a competitive edge, smartphone manufacturers are focused on developing new features, creating closed user system environments with complementary devices, augmenting advertising and marketing efforts, engaging in cross-border collaborations, and waging price wars. These strategies will be crucial in driving growth and maintaining market share in the dynamic and competitive smartphone market.

With regards to further growth in the smartphones market, although penetration rates have nearly reached their maximum levels, we expect certain trends to further increase the global revenue of smartphones in the market such as the introduction of 5G networks and the increasing popularity of smart homes. As the world becomes more and more digital and connected, smartphones have proven to be an essential part of this transformation. In smart homes, smart products usually need to be controlled through an app in a separate digital device, which is where the smartphone plays the crucial role. The development of 5G could further develop this trend with the inclusion of electronic vehicles, and even entire cities being run like smart homes.

Data coverage:

The data encompasses B2C enterprises. Figures are based on consumer spending on electronic and digital devices used privately either for entertainment (televisions, game consoles, smart speakers, etc.), communication (telephones, smartphones, etc.) or home-office activities (printers, copiers, etc.).

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Global Consumer Survey), as well as performance factors (e.g., user penetration, price per product, usage). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, number of internet users, smartphone penetration rate, household number and consumer price index. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electronic products due to the non-linear growth of technology adoption and regular product upgrade. The main drivers are GDP per capita, consumer spending per capita, and 5G penetration rate.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.