Gen Z is getting older and steadily moving toward becoming the most digitally connected generation. In 2024, US Gen Zers will surpass millennials in regular internet use, and they'll do the same with smartphone penetration in 2026.

Mobile payments are near universal across use cases in China, thanks to high mobile penetration and the rise of a wallet duopoly that’s made them accessible, affordable, and convenient.

Canadian mobile penetration and bank access have created a high-potential environment for both proximity and peer-to-peer mobile payments. But entrenched payment habits and monopolization have created a slow growth environment that will force providers to adapt.

Smartphone penetration among internet users in the region will range from a high of 98.8% in Thailand to a low of 81.7% in the Philippines in 2022. This year, the number of Southeast Asia smartphone users will grow faster than the number of overall mobile phone users.

That said, smartphone penetration is significantly lower, at 44.8% in 2022. Smartphones will reach just 14.2% of the general population in the Middle East and Africa, while mobile phones will reach 36.6% of the population there. Looking ahead: Overall, growth rates show a lot of variety across regions, with the most room for growth in the Middle East and Africa.

Mobile wallets are now one of the most popular payment methods across the region, supported by increased smartphone penetration. Mobile transaction volume in Southeast Asia hit $62.59 billion in 2020 and is expected to increase more than four-fold to $268.07 billion by 2025, according to Boku and Juniper Research.

But mobile wallets are likely to see strong growth in the short term thanks to the prevalence of mobile money accounts and growing mobile phone penetration. What’s more, the Middle East and Africa are expected to see the fastest growth (+12.9% YoY) in proximity mobile payment penetration in 2022, per Insider Intelligence forecasts.

This year, smartphone penetration among internet users in the region will range from a high of 98.8% in Thailand to a low of 81.7% in the Philippines. The smartphone’s dominance is growing in this mobile-first region. This year, the number of smartphone users in Southeast Asia will grow faster than the number of overall mobile phone users.

Ownership of PCs and tablets declined, as smartphone penetration rose. Time spent with all devices climbed, though. Between H1 2020 and H1 2021, smartphone penetration in Canada rose minimally, from 92.5% to 93.6% of internet users ages 16 to 64, GWI reported. Ownership remained highest among respondents ages 16 to 44 and those living in more affluent households.

Smartphone penetration will rise dramatically over the next several years as Gen Z matures. The number of Gen Z smartphone users will reach 66.5 million in 2025, representing 95.7% penetration. In four years, its smartphone penetration will be the highest of any generation, eclipsing that of millennials (95.2%), Gen X (89.7%), and baby boomers (71.2%).

Smartphone penetration remains high, while ownership of PCs and tablets has drifted lower. Smartphone ownership among internet users in Turkey was already close to 98% in H1 2019 and appears to have reached a plateau. PC penetration declined marginally to 71.1% this year, lagging smartphones by more than 26 percentage points. Tablet ownership also slipped, to 45.5%.

Smartphone penetration increases while tablets trail

Penetration of desktops and laptops had increased YoY, however, while smartphone penetration hadn’t really shifted. Nearly 39% of respondents owned a tablet—an annual gain of nearly 2 percentage points. One in 10 internet users owned a feature phone. Mobile devices accounted for an average 4:28 of respondents’ media time each day in H1 2021. PCs and tablets claimed about half an hour less, at 3:55.

Smartphone penetration shrank slightly in South Korea between H1 2020 and H1 2021 to 96.9%. A mere 2.2% of respondents had a feature phone. PC penetration also drifted down in H1 2021, to 81.0%. However, tablet ownership climbed for the second year in a row, to 39.1%. As in 2020, affluent internet users and those ages 16 to 24 were more likely to own either device.

Ownership of PCs appears to have peaked, while smartphone penetration inched higher. The share of UK internet users ages 16 to 64 owning a desktop or laptop fell below 80% in H1 2021, to 77.1%—a decline of nearly 6 percentage points over two years. Tablet penetration remained relatively high, though, at 56.1%.

Smartphone penetration had declined slightly since 2020, but advanced handsets remain the crucial digital device for most internet users; 95.6% of respondents owned one in H1 2021. Only 3.6% had a feature phone. Adoption rates for most advanced digital devices remain lackluster.

Notwithstanding high smartphone penetration, uptake of voice assistants—such as the Siri and Cortana mobile apps—was quite limited in H1 2021.

Smartphone penetration in the US has finally passed 95%. Among female internet users, those 35 to 54, and respondents in middle- and higher-income homes, more than 96% owned an advanced handset in H1 2021. Time spent with mobile phones had risen to 3:12. By contrast with PCs, smart TVs recorded a notable gain between 2020 and 2021, with ownership climbing to 51.5% of internet users.

Somewhat surprisingly, smartphone penetration was marginally lower than in H1 2020, at 94.1%. Ownership appears to have fallen very slightly in most demographics, with a more notable decline among 25- to 34-year-olds. However, uptake of smartwatches and smart wristbands rose significantly for this age bracket during the year, and those devices may have replaced smartphones for some users.

Yet smartphones did overtake PCs some years back, and the gap between smartphone penetration and that of desktops/laptops widened to 13 percentage points this year; 94.9% of internet users ages 16 to 64 owned a smartphone in H1 2021, while 81.8% owned a PC. Tablets, like PCs, posted a modest decline in ownership, to 54.5%.

While smartphone penetration remained high, engagement with most other devices—both old and new—was more nuanced. Considering that Hong Kong is small, densely populated, and well-served by a robust communications infrastructure, it’s no surprise that some digital devices are extremely common, if not universal. For example, 96.9% of internet users ages 16 to 64 owned a smartphone in H1 2021.

Smartphone penetration remains stable. Rates of smartphone ownership were much the same as in 2020 and almost uniformly high. That’s no surprise since smartphones were already the dominant digital device for the vast majority of internet users worldwide. Smart TVs are gaining ground as high-quality in-home viewing becomes a must-have.