The North America rugged phones market is expected to grow from US$ 864.07 million in 2019 to US$ 1,426.99 million by 2027; it is estimated to grow at a CAGR of 6.7 % from 2020 to 2027.
Increasing 5G deployments is expected to upsurge the North America rugged phones market growth. The demand for connected devices and reliable network technologies is rising among industrial customers across North America. Communication network technologies such as 2G, 3G, and 4G are already well established across the region. With the rising complexity of electronic systems and integration of advanced technologies in smartphones, there is a growing demand for further improvements in network capacity, latency, and coverage. 5G is the fast-emerging wireless technology that offers promising performance enhancements over existing technologies. The US and Canada have already started the successful deployments of 5G. In comparison to existing wireless network technologies, 5G is anticipated to offer enhanced network capacity, high coverage, improved latency, and improved battery life. All these advantages are anticipated to drive the penetration of 5G across North America during the forecast period. Owing to the positive growth outlook of 5G technology, companies operating in the North America rugged phones market have already started to integrate 5G capabilities in their models to meet the future demand of their end users and differentiate their offering from competitors. Market players are also exploring the 5G capabilities and plan to include it in their products in coming years, depending on the customer requirements for advanced functionality. Thus, the rising deployment of 5G is anticipated to propel the growth of the North America rugged phones market during the forecast period.
Countries in North America, especially the US, are adversely affected due to the COVID-19 outbreak. The region has the presence of a few key markets for rugged phones such as the US and Canada. In these countries, adoption of advanced communication solutions and investments in industrial and public safety sectors are quite high owing to the huge presence of key technology providers, rugged phone companies, telecommunication companies, and network service operators. Hence, North America is one of the most important regions for the growth of the rugged phones market owing to the presence of huge industrial sector and high investments in research and development activities related to smartphones. Hence, any hindrance on the economic growth of the region hampers the growth of the market. Due to COVID-19 outbreak, the region is witnessing decline in telecom infrastructure development activities, temporary shutdown of businesses, disruptions in supply chain and manufacturing activities, and impact on sales & marketing activities of rugged phone companies operating in the region. All these factors have hindered the revenue and growth of rugged phones market in the region. The impact is severe especially for small and medium sized companies/startups involved in this market. However, through ongoing restructuring efforts taken by companies to tackle the supply chain issues and increase coordination with sales partners and suppliers may help in reducing the negative impact to some extent.
Based on type, the semi-rugged segment led the North America rugged phones market in 2019. Semi-rugged phones are capable of handling rougher treatment than a consumer-grade handheld; however, they are still not dustproof or waterproof completely. Many semi-rugged handhelds come with an IP rating of IP54, which signifies that the product is protected from extreme situations but lags in operating against dust. Semi-rugged phones are resistant to light splashing, however, unable to bear immersion or jet sprays. In addition, few semi-rugged handhelds also fulfill some MIL-STD-810F standards, although not for immersion or dust. A few advantages of semi-rugged phones such as ruff and tuff hardware, resistant to light splash, and high battery capacity are expected to increase its demand in coming years, which would drive the North America rugged phones market during the forecast period.
The overall North America rugged phones market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the North America rugged phones market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, rugged phones market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the North America rugged phones market. Caterpillar Inc.; Juniper Systems Inc.; Sonim Technologies Inc.; Unitech Electronics Co., LTD; and Zebra Technologies Corporation are among the players operating in the market.