Factors Driving and Inhibiting the Tablet Devices Market


Published Date : Sep 08, 2014

Tablet devices market is competing with desktop and laptop personal computer market. Tablet personal computer or devices are a cross between a personal digital assistant (PDA) and a laptop. A tablet device is a flat-planed portable computer, which the user can access by tapping on the screen with their finger or with a stylus. Tablet devices come with wireless technology such as data network or Wi-Fi.

Tablet devices are portable and they can be typically about the size of thin book which is around seven inches. However, many tablet devices available in the market can be slightly larger or smaller. These devices are preferred by students and businesspeople. Currently, tablets are equipped with a broad range of features such as sensors, cameras, touchscreen, microphone, stylus, torch, etc.

Tablet Devices Market - Drivers and Restraints

According to a market research agency, the global market of tablet devices is disruptive to the PC market. It is responsible for reducing units in the PC market by 8% on average.

Many factors are responsible for supporting the growth of tablet devices industry. Growing consumer demand for the latest innovative electronic gadgets boosts this market. Also, increase in the usage of tablet devices for business software and emergence of new players that provide products at a more affordable price with better services in the market supports this market’s growth. There is a wide acceptance of the product and increasing consumer spending which also fuels the growth of the market. Other factors which tend to boost the market are increasing demand for enterprises, broad range of products and increasing demand for high performance tablet PCs.

The tablet devices market is also getting a boost from the emerging economies of Asia-Pacific and from the increasing number of disposable incomes. However, this market is suppressed due to factors such as high cost of the tablets, data security challenges, and ineffectiveness of tablet PCs for carrying out complex engineering concepts. The growth of this market is also hampered due to the technical challenges such as weaker video capabilities, lack of USB port, and absence of traditional optical drives and keyboards in tablet PCs.

Product Segmentation of Tablet PCs

The tablet devices market is segmented according to operating systems (OS), vendors, form factors, users, usability, and geography.

According to operating system, the market is segmented into Android OS, Windows OS, iOS, and Blackberry Tablet OS (QNX). The top market players in the tablet PCs market are Apple, HTC, Samsung, Dell, RIM, Motorola, and Amazon. By form factors, the tablet devices are segmented into width, weight, length, thickness, and display screen sizes.

The user types are consumer-liable, business-liable, personal only, and personal and business. According to geography, the market is segmented into four zones namely Europe, North America, Asia-Pacific, and Rest of the World. The smartphone market and tablet PCs market mirror each other in terms of market segmentation.

Insights into the Global Tablet Devices Market

According to a market intelligence company, the global tablet sales to end user were 67.0 million units in the year 2011. This figure is projected to reach 248.6 million units by 2015, with a 38.8% CAGR, during the forecast period of 2011-2015. During the forecast period, Asia-Pacific zone is expected to witness the highest share of overall global shipments at the end user sales of tablet devices.

The sale of tablet devices to end user increased by 276.5% in 2011, these were noted from 17.8 million units sold to end users during 2010. This growth graph is attributed largely due to consumer response to Samsung’s Galaxy Tab and Galaxy Tab 2, Apple’s iPad 2, and Amazon’s Kindle Fire Tab. In November 2011, the launch of Amazon’s Kindle Fire Tab worth USD 199 received an incredible response from consumers and managed to score around 3.5 million units sales in the last 45 days of the year.

The installed base of tablet devices market reached 81.2 million units in 2011 and is projected to reach around 388.8 million unit sales by the end of the year 2015, which is approximately 45% loss/replacement by the same year.