Revenue for the smartphone manufacturing industry in China has been increasing at an average annual rate of 48.8% in the past five years, according to a new report from IBISWorld. In 2013, revenue is expected to reach $55.2 billion, mainly driven by increased exports and growing domestic demand for second- and third-generation (3G) smartphones. 

With the rapid development of 3G technology, the growing smartphone product portfolio, and competitive product pricing, demand for the phones has been rising strongly. Production of smartphones has increased from 1.3 million sets in 2003 to an estimated 315.6 million sets in 2013.

Exports account for 86.4% of the smartphone manufacturing industry’s total revenue in China, and are expected to remain the most dominant market for over the next few years. Domestically, demand in China’s central and western regions will pick up, while the country’s developed eastern and northern regions will continue to contribute to the industry’s strong performance.

For additional information, visit www.ibisworld.com.