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The Sum of Its Parts: The Smartphone Multiplier Market

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COTW Smartphone Multiplier Market

The Sum of Its Parts: The Smartphone Multiplier Market

There’s a 60% chance you’re reading this article on a smartphone right now—a testament to how ubiquitous these devices have truly become in our lives.

We rely on smartphones every waking minute to stay connected. However, the various products and services—also known as the smartphone multiplier market—that allow us to use these devices in the first place can often be an afterthought.

Today’s chart uses data from Deloitte Insights to show just how sizable this ecosystem is becoming, and why it’s heating up as a battleground for big technology companies such as Apple, Alphabet, and Amazon.

The Smartphone Plateau

There are over 3.3 billion smartphone users in the world today.

The smartphone economy—estimated to pull in $944 billion in total revenue in 2020—is so massive that it rivals the GDP of countries like Indonesia and the Netherlands.

At the moment, the smartphones themselves contribute over half the market value. Despite the continued hype surrounding the release of new models, global unit shipments of smartphone devices appears to have reached a saturation point:

Smartphone Sales

There are two theories as to why shipments are leveling off. First, product innovation is more iterative today than in the past, which means there are fewer groundbreaking features to entice consumers into purchasing new devices. A second factor is that people are simply holding onto their devices for longer than in the past.

As device sales plateau, tech giants are diversifying efforts to find new ways to lure customers back in—and another related market is growing more lucrative as a result.

What is a “Smartphone Multiplier”?

When people think of the smartphone market, hardware likely springs to mind first, but an equally important part of the equation is the plethora of apps, services, accessories, and complementary devices that help us connect with the digital world.

The ecosystem of these products and services are known as smartphone multipliers. According to Deloitte, this ecosystem will drive $459 billion of revenues in 2020, an impressive 15% increase from the prior year.

The market can be broken down into three main categories:

CategoryMarket Value (2020e)Sub-categories
Content$312B
(68% of total)
$176B: Mobile ads
$118B: Apps
$10B: Music
$8B: Video
Hardware$111B
(24% of total)
$77B: Accessories
$25B: Wearables
$9B: Smart speakers
Services$37B
(8% of total)
$18B: Insurance
$12B: Repairs
$4B: Others
$3B: Storage

Largely driven by mobile advertising and app sales, content is by far the largest subcategory, accounting for 68% of revenues:

  • Mobile advertising surpassed TV as the largest advertising channel in 2019, partially thanks to the relentless growth of online video and social media, making ads virtually unavoidable on a smartphone.
  • Gaming apps are benefiting from the immense processing power of today’s smartphones—and will bring in over two-thirds of total app revenue in 2020. Apple’s app store brought in approximately $1.8 billion in sales between Christmas Eve and New Year’s Day alone.
    • If you’ve ever owned a pair of headphones or a powerbank, it’s easy to understand why accessories are the third-largest subcategory in the smartphone multiplier market. With more people ditching the cable for wireless headphones, this subcategory is also set to grow even more.

      The Next $1T Economy?

      In the U.S., 73% of adults go online several times a day or almost constantly, which makes it clear that they aren’t going to give up their smartphones anytime soon.

      As a result, smartphone multipliers will continue to evolve and flourish, presenting a unique opportunity for investors and businesses.

      Altogether, it’s expected that the smartphone multiplier market will grow between 5 and 10% annually through 2023, likely propelling the entire smartphone economy past the $1 trillion benchmark in the coming years.

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Energy

Mainstream EV Adoption: 5 Speedbumps to Overcome

The pace of mainstream EV adoption has been slow, but is expected to accelerate as automakers overcome these five critical challenges.

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Mainstream EV Adoption: 5 Speedbumps to Overcome

Many would agree that a global shift to electric vehicles (EV) is an important step in achieving a carbon-free future. However, for various reasons, EVs have so far struggled to break into the mainstream, accounting for just 2.5% of global auto sales in 2019.

To understand why, this infographic from Castrol identifies the five critical challenges that EVs will need to overcome. All findings are based on a 2020 survey of 10,000 consumers, fleet managers, and industry specialists across eight significant EV markets.

The Five Challenges to EV Adoption

Cars have relied on the internal combustion engine (ICE) since the early 1900s, and as a result, the ownership experience of an EV can be much more nuanced. This results in the five critical challenges we examine below.

Challenge #1: Price

The top challenge is price, with 63% of consumers believing that EVs are beyond their current budget. Though many cheaper EV models are being introduced, ICE vehicles still have the upper hand in terms of initial affordability. Note the emphasis on “initial”, because over the long term, EVs may actually be cheaper to maintain.

Taking into account all of the running and maintenance costs of [an EV], we have already reached relative cost parity in terms of ownership.

—President, EV consultancy, U.S.

For starters, an EV drivetrain has significantly fewer moving parts than an ICE equivalent, which could result in lower repair costs. Government subsidies and the cost of electricity are other aspects to consider.

So what is the tipping price that would convince most consumers to buy an EV? According to Castrol, it differs around the world.

CountryEV Adoption Tipping Price ($)
🇯🇵 Japan$42,864
🇨🇳 China $41,910
🇩🇪 Germany$38,023
🇳🇴 Norway$36,737
🇺🇸 U.S.$35,765
🇫🇷 France$31,820
🇮🇳 India$30,572
🇬🇧 UK$29,883
Global Average$35,947

Many budget-conscious buyers also rely on the used market, in which EVs have little presence. The rapid speed of innovation is another concern, with 57% of survey respondents citing possible depreciation as a factor that prevented them from buying an EV.

Challenge #2: Charge Time

Most ICE vehicles can be refueled in a matter of minutes, but there is much more uncertainty when it comes to charging an EV.

Using a standard home charger, it takes 10-20 hours to charge a typical EV to 80%. Even with an upgraded fast charger (3-22kW power), this could still take up to 4 hours. The good news? Next-gen charging systems capable of fully charging an EV in 20 minutes are slowly becoming available around the world.

Similar to the EV adoption tipping price, Castrol has also identified a charge time tipping point—the charge time required for mainstream EV adoption.

CountryCharge Time Tipping Point (minutes)
🇮🇳 India35
🇨🇳 China34
🇺🇸 U.S.30
🇬🇧 UK30
🇳🇴 Norway29
🇩🇪 Germany29
🇯🇵 Japan29
🇫🇷 France27
Global Average31

If the industry can achieve an average 31 minute charge time, EVs could reach $224 billion in annual revenues across these eight markets alone.

Challenge #3: Range

Over 70% of consumers rank the total range of an EV as being important to them. However, today’s affordable EV models (below the average tipping price of $35,947) all have ranges that fall under 200 miles.

Traditional gas-powered vehicles, on the other hand, typically have a range between 310-620 miles. While Tesla offers several models boasting a 300+ mile range, their purchase prices are well above the average tipping price.

For the majority of consumers to consider an EV, the following range requirements will need to be met by vehicle manufacturers.

CountryRange Tipping Point (miles)
🇺🇸 U.S.321
🇳🇴 Norway315
🇨🇳 China300
🇩🇪 Germany293
🇫🇷 France289
🇯🇵 Japan283
🇬🇧 UK283
🇮🇳 India249
Global Average291

Fleet managers, those who oversee vehicles for services such as deliveries, reported a higher average EV tipping range of 341 miles.

Challenge #4: Charging Infrastructure

Charging infrastructure is the fourth most critical challenge, with 64% of consumers saying they would consider an EV if charging was convenient.

Similar to charge times, there is much uncertainty surrounding infrastructure. For example, 65% of consumers living in urban areas have a charging point within 5 miles of their home, compared to just 26% for those in rural areas.

Significant investment in public charging infrastructure will be necessary to avoid bottlenecks as more people adopt EVs. China is a leader in this regard, with billions spent on EV infrastructure projects. The result is a network of over one million charging stations, providing 82% of Chinese consumers with convenient access.

Challenge #5: Vehicle Choice

The least important challenge is increasing the variety of EV models available. This issue is unlikely to persist for long, as industry experts believe 488 unique models will exist by 2025.

Despite variety being less influential than charge times or range, designing models that appeal to various consumer niches will likely help to accelerate EV adoption. Market research will be required, however, because attitudes towards EVs vary by country.

CountryConsumers Who Believe EVs Are More Fashionable Than ICE Vehicles (%)
🇮🇳 India70%
🇨🇳 China68%
🇫🇷 France46%
🇩🇪 Germany40%
🇺🇸 UK40%
🇯🇵 Japan39%
🇺🇸 U.S.33%
🇳🇴 Norway 31%
Global Average48%

A majority of Chinese and Indian consumers view EVs more favorably than traditional ICE vehicles. This could be the result of a lower familiarity with cars in general—in 2000, for example, China had just four million cars spread across its population of over one billion.

EVs are the least alluring in the U.S. and Norway, which coincidentally have the highest GDP per capita among the eight countries surveyed. These consumers may be accustomed to a higher standard of quality as a result of their greater relative wealth.

So When Do EVs Become Mainstream?

As prices fall and capabilities improve, Castrol predicts a majority of consumers will consider buying an EV by 2024. Global mainstream adoption could take slightly longer, arriving in 2030.

Caution should be exhibited, as these estimates rely on the five critical challenges being solved in the short-term future. This hinges on a number of factors, including technological change, infrastructure investment, and a shift in consumer attitudes.

New challenges could also arise further down the road. EVs require a significant amount of minerals such as copper and lithium, and a global increase in production could put strain on the planet’s limited supply.

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Mapped: The Top Podcasts on Spotify Across Countries

Podcasting is now a billion dollar industry, attracting big names and audiences to match. Here’s a global look at the top podcasts on Spotify.

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The Top Spotify Podcast Across Countries

We are amidst the breakout era of podcasts. Since the beginning of the smartphone revolution, the digital audio format has picked up serious traction with audiences all over. In the U.S. alone, it’s estimated that there will be 132 million podcast listeners by 2022.

Today, there are 850,000 active podcasts available in 100 languages, with over 30 million episodes to tap into—perfect if you have an afternoon to yourself.

Worldwide Podcast Chart-Toppers

The data in this infographic comes from Spotify, the top global streaming service in the industry by paid users. How do the top podcasts fare on a per country basis?

CountryTop PodcastHonorable Mention (Second Highest)
CanadaThe Joe Rogan ExperienceCall Her Daddy
FranceChoses a SavoirMythes et Legendes
UKThe Michelle Obama PodcastThe Joe Rogan Experience
GermanyGemischtes HackFest & Flauschig
ItalyBlu Notte - Fisteri ItalianiMushio Selvaggio
U.S.The Michelle Obama PodcastCall Her Daddy
Japankemioの耳そうじクラブHapa英会話 Podcast
AustraliaFrom The NewsroomThe Joe Rogan Experience
IndiaThe Michelle Obama PodcastPurijagannadh
IrelandThe Joe Rogan ExperienceThe 2 Johnnies Podcast
MexicoLeyendas LegendariasLa Cotorrisa
New ZealandThe Joe Rogan ExperienceCall Her Daddy
ArgentinaConcha PodcastEntiende Tu Mente
AustriaVerbrechenFest & Flauschig
BrazilNerdCastCafé da Manha
ChileTomas Va A MorirMatriarcalmente Hablando
ColombiaDianaUribe.fmDani 3Palacios Podcast
DenmarkMorkelandHer Gar Det Godt
FinlandPOKSJaliila
IndonesiaRintik SeduPODKESMAS
NorwayFriminutt med Herman og MikkelG-punktet
PhilippinesSleeping Pill with InkaAdulting With Joyce Pring
PolandKryminatoriumJa I moje przyjaciółki idiotki
SpainNadie Sabe NadaEntiende Tu Mente
SwedenP3 DokumentarSommar & Vinter i P1
NetherlandsZelfspodcastMan man man, de podcast

Many of the top shows around the world follow a familiar interview or conversational format, but there are trends that deviate from that formula. In particular, there are a number of podcasts focused on health and wellness as well as current events.

The early beginnings of podcasting were dominated by upstart content creators, but as the market has matured, big media outlets and A-list personalities have been vying for listeners’ attention in an increasingly crowded field. As it stands now, two podcasts from America carry a large presence in foreign markets, and the two big personalities—Michelle Obama and Joe Rogan—stand a notch above the rest.

The Rogan-Obama tug of war in the podcast realm has had its back and forths. Obama pulled ahead in many countries in August, but in September the pendulum swung in favor of Rogan.

Follow The Money

In 2015, ad revenue in the podcast industry was a minuscule $69 million across the board. It’s expected to reach over $1 billion by 2021, and to grow further from there.

podcast industry revenue

The podcast boom is powered by younger generations, and both millennials and Gen Z represent a sizable portion of the total podcast audience globally. In particular, demographic listenership numbers experience a big drop after the 35-54 age bracket.

podcast audience by age group

Flexibility and variety are key features that are helping fuel the growth of the medium. One can keep up with serious world affairs or listen to Call Her Daddy—a podcast on sex and relationships by Barstool Sports, another podcast that frequently tops the charts.

Top Podcast Publishers by U.S. Audience

When it comes to key participants in the industry, National Public Radio (NPR) sits on the top spot with over 26 million unique monthly audience members. In close second, iHeartRadio holds a whopping 494 shows.

Podcast PublisherU.S. Unique Monthly AudienceGlobal Downloads & StreamsActive Shows
NPR26,933,000219,716,00049
iHeartRadio26,182,000234,417,000494
New York Times13,102,000145,961,00015
Barstool Sports10,228,00067,569,00043
PRX9,035,00082,245,00087
Wondery8,794,00057,261,00098
ESPN/ABC8,472,00066,685,00096
NBC News6,751,00044,219,00026
Cumulus Media/Westwood One6,473,00040,912,000115
Warner Media6,350,00033,503,000113
This American Life/Serial5,924,00022,722,0002
Kast Media5,319,00030,353,00046
Daily Wire5,212,000
43,342,0005
WNYC Studios5,209,00035,381,00052
All Things Comedy4,890,00028,770,00058
TED3,739,00051,696,00010
American Public Media3,362,00017,997,00050
Fox News Radio2,518,00013,633,00034
Slate1,951,00013,812,00097
WBUR1,105,0006,758,00018

If you’re bullish on podcasts, many in the top 20 are publicly traded entities who either stand alone, or are part of a larger corporation. Notable stocks include the New York Times, ESPN as part of Disney, and Warner Media as part of AT&T.

Spotify Today and Tomorrow

Spotify’s direct listing IPO was initially met with a lack of confidence, due to Big Tech’s entry in the space, as well as the profitability and monetization concerns that typically plague the music industry as a whole. However, the company has done well in abating those concerns, especially if you consider Spotify’s stock price, which has doubled in the last year. An impressive 21% of Spotify’s monthly active users engage with podcast content.

In addition, a wealth of personalities have entered the podcasting space. These big names suggest that the competition is dialing up.

In recent months, an exclusive deal between Spotify and Joe Rogan, valued at over $100 million took the podcasting world by storm. This is quite a monumental step for the podcast timeline, and one that suggests more deals could follow as Spotify looks to lock people into their platform with exclusivity deals.

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