Industry Outlook

The global market for hybrid (2 in 1) laptops stood at US$ 8,882.7 Mn in 2017 and expected to reach US$ 15,375.8 Mn by 2026, growing at a CAGR of 6.4% during the forecast period of from 2018 to 2026. North America dominated the market in 2017 and expected to retain its leading position throughout the forecast period. However, Asia Pacific identified as the fastest growing market during the forecast period.

2 in 1 laptops, also known as hybrid laptops or convertible laptops designed to function as a laptop as well as a tablet, according to the preference of the consumers. These laptops are manufactured keeping the versatility factor in mind, allowing the consumers to choose the desired use of the device as per their preference. The display screen of a 2 in 1 laptop can be rotated to 360 degrees, or can be detached to take the form of a tablet as and when required. Convertible laptops are gaining rapid acceptance among the working populace and gradually replacing tablets due to superior performance. Tablet lacks the features of a laptop such as faster processor speed, and better storage capacities among others, thus making them inappropriate for the working populace who would require a hand held device for their daily work that would complement their need for mobility. On contrary, performance factor has paved the way for 2 in 1 laptops, as these devices are made by combining the performance of a notebook and a tablet consequently leading to surge in demand for 2 in 1 laptops across the world. Aggressive research & development activities by major manufacturers of 2 in 1 laptops, leading to frequent product launches is also one of the key factors driving the growth of the market. In August 2018, Dell launched a series of laptops, expanding its XPS, Vostro and Inspiron range. The launch catering to the convertible laptop sector includes Inspiron 7000 2 in 1 laptops, Inspiron 5000 2 in 1 laptops, and Dell Inspiron Chromebook 2 in 1 laptop.

"13.3 Inches/13.5 Inches Laptops Emerged as Dominating Segment by Screen Size in 2017, and Expected to Continue the Trend throughout the Forecast Period"

Based on screen size, 13.3 inches/13.5 inches 2 in 1 laptops dominated the market in 2017, followed by 12/12.5 inches and 14 inches laptops. 13 inches, 14 inches, and 12inches/12.5 inch laptops are highly preferred by the working populace due to their lightweight and easy usability. 12 to 14 inches laptops are a balance between portability and usability. These laptops weigh below 2 kilograms; offers better specifications compared to 10.1 and 11.6 inches laptops and are less cumbersome compared to 15.6 and 17.3 inches laptops. Further, Dell launched a series of convertible laptops in August 2018, which covers the 13.3 inches and 14 inches category laptops with superior features such as 8th generation processors, 4K ultra high display (UHD) screens, aluminum exteriors, fingerprint sensors and pen support among others. These laptops can also be operated as a tablet with ease.

"Online Channel is Expected to Generate the Fastest Growth During the Forecast Period"

Robust growth in e-commerce industry has led several manufacturers operating in the hybrid (2 in 1) laptops market to expand their distribution channel by operating online which would allow them to expand their geographical reach. E-commerce industry sales grew from US$ 1.39 trillion in 2014 to US$ 1.92 trillion in 2016 and expected to cross the US$ 4 trillion mark by the end of 2020. Shopping through smartphones have witnessed robust growth as consumers are increasingly using their mobile devices for shopping activities. Owing to increasing competition in the online space, major companies such as Amazon and Rakuten among others are resorting to heavy marketing and promotional activities, such as offering heavy discounts in order to gain maximum customer attraction.

Online sale of laptops crossed the US$ 2 Bn mark in 2016 with Dell, Asus, Hewlett-Packard and Lenovo together capturing more than 50% of the sales. Further, Amazon, and Dell ranked as the top online retailers for the sale of laptops. However, the electronic stores segment accounted for the major market share due to high consumer preference for this mode of channel as majority of the consumers prefer to examine physically the laptops and its features before purchasing.

"25 -45 Years, by Age Group Dominated the Market and Expected to Continue the Trend in the Future"

Based on age group, the 25-45 years segment accounted for the major market share in 2017 and expected to retain market dominance throughout the forecast period as this age group represents the prime working population. The manufacturers of convertible laptops have designed their products keeping in mind the need and preference of the consumers by way of combining the features of a tablet; such as the touchscreen, and that of a laptop such as faster processors, and storage space among others. Growing disposable income of the working population aged 25-45 years coupled with rising penchant towards premium products are key factors fuelling the demand for convertible laptops for this segment. Further, the growing trend of BYOD (Bring Your Own Device) is another key factor driving the demand for convertible laptops. BYOD is a growing trend in corporate sector where the organizations allow their employees to use their own devices to work and use the company’s data and enterprise system.

However, the 15 -24 years segment expected to grow at a faster pace during the forecast period due to rising adoption of 2 in 1 laptops among the college going population. Rapid penetration of 2 in 1 laptops in educational institutions is fuelling market growth, which is a key factor driving the demand for such laptops among the 15 -24 years segment. Dell, one of the key players operating in the 2 in 1 laptops market is targeting large corporations such as government organizations and educational sectors since these sectors allow larger inflow of profits and supported by dedicated account managers and sales representatives.

"Emerging Nations Expected to Drive Future Demand for Hybrid (2 in 1) Laptops"

The global market for hybrid (2 in 1) laptop is dominated by North America followed by Europe in 2017. High purchasing power of consumers is one of the key factors driving the growth of the hybrid (2 in 1) laptops market in these regions. Rising consumer demand for mobility and flexibility is also among the key factors responsible for the growth of the hybrid (2 in 1) laptops market in North America and Europe. Several colleges in U.S. have implemented the strategy of offering laptops to graduate students, the prices of which are mostly included in the course fee. This has helped the market for hybrid (2 in 1) laptops in North America to take a proper shape. Penetration rate of laptops in U.K. is the highest in age groups ranging from 15-60 Years. Laptops have become an essential tool for study & work in the country and their presence in households and offices has witnessed a steady increase every year. Rising demand for such devices among the younger population is one of the key factors fuelling market growth of hybrid (2 in 1) laptops in U.K.

Emerging regions such as Asia Pacific and Latin America expected to drive the future market growth of hybrid (2 in 1) laptops. Factors such as rapid urbanization, increasing working population and higher purchasing powers are some of the key factors that will drive the future demand for hybrid laptops. However, the demand for such laptops in developing nations is still in a nascent stage due to their high price, which urges the consumers to opt for their alternatives, i.e. conventional laptops. Further, high demand for pre-owned devices in countries such as India is another key factor restraining the market growth of hybrid (2 in 1) laptops in the country, as price sensitive consumers would prefer to buy a pre-owned 2 in 1 laptop at a lower price rather than paying retail price for the same.

In January 2018, Lenovo launched a series of new chromebooks and laptops aimed at the educational institutions. These laptops have passed a series of tests such as drop tests up to 2.46 feet and spill tests up to 330 ml. Further, these laptops also conform to the U.S. Military Standard, also called as MIL-SPEC. The portfolio is inclusive of Lenovo Yoga, Chromebook and 300e among others. These are convertible 2 in 1 laptops, which comes with a stylus pen for the touchscreen. These factors expected to contribute to the growing demand for hybrid laptops in the coming years.

"Product Development is one of the Key Strategies of the Companies operating in the 2 in 1 Laptops Market"

Notable players operating in the global hybrid (2 in 1) laptops market include The Hewlett-Packard Company, Dell, Lenovo Group Ltd., AsusTek Computer Inc., Acer Inc., Toshiba Corporation, Microsoft Corporation, Samsung, Japan Industrial Partners Inc., and AWOW among others.

In January 2018, Toshiba Corporation launched its line of business class mobile computing solutions featuring the latest 8th Generation Intel® Core™ vPro™ processors. The Portege X20W laptop is a convertible 2 in 1 laptop featuring a 12.5 inch display and offers the functionality of a laptop and tablet combined together and powered by the 8th generation Intel® Core™ vPro™ processor along with Windows 10. The laptop is 15.4 mm thin and features a 360-degree hinge in order to offer flexibility in terms of usage.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Hybrid (2 in 1) Laptops market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Hybrid (2 in 1) Laptops market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Hybrid (2 in 1) Laptops market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Hybrid (2 in 1) Laptops market?
• Which is the largest regional market for Hybrid (2 in 1) Laptops market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Hybrid (2 in 1) Laptops market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Hybrid (2 in 1) Laptops market worldwide?