(iTers News) - Worldwide smart connected device market is forecast to grow 27.8% year-on-year in 2013, including PCs, tablets, and smart phones, according to market research firm IDC. That is a slightly lower figure, compared with the 30.3% growth in 2012.
Driving the growth will be by tablets and smartphones, as the outlook for PC shipments still remain gloomy,
IDC forecasts tablet would outsell PCs, including desktop plus portable PCs in the fourth quarter of 2013, although PCs shipments are still expected to be greater than tablet shipments for a whole of the fiscal 2013.
Yet, IDC predicts tablet shipments will surpass total PC shipments on an annual basis by the end of 2015.
Smartphones will continue to ship in high volumes, surpassing 1.4 billion units in 2015 and accounting for 69% of all smart connected device shipments worldwide.
In terms of value, worldwide smart connected device market will again exhibit double-digit year-over-year growth of 10.6% in 2013, but this growth will gradually slow to just 3.1% in 2017, reflecting the potentially rapid penetration of low-cost smartphones and white box tablet PCs.
"At a time when the smartphone and tablet markets are showing early signs of saturation, the emergence of lower-priced devices will be a game-changer," said Megha Saini, research analyst with IDC. He added,” "Introducing new handsets and tablet devices at cheaper price points along with special initiatives like trade-in programs from Apple and BestBuy will accelerate the upgrade cycle and expand the total addressable market overnight."
IDC expects lower-cost devices to drive interest worldwide, and help to spark uptake among first-time buyers in commercial sectors like education.
A new round of device cannibalization is also expected to kick in, but this time with 5-inch larger screen smartphones called as phablet beginning to impact smaller tablet market segment ranging between 7-8 inch in screen size.