Smart phones are expected to make up 15% of the global mobile phone market this year, as users adopt wider mobile data services.
Analyst ABI Research said the number of smart phones sold this year will reach 123 million devices, representing 15% of total mobile phone sales.
ABI said increased interest in data services was a key driver of the growth in sales, alongside wider 3G coverage to fully support smart phones.
ABI also predicted that, by 2010, 25% of all smart phones will be able to connect over a Wi-Fi network.
This will enable cheaper calls to be completed over a standard phone network, and give users easier access to business applications running on a corporate network.
The analyst added that Linux and Windows were also poised to take a much bigger share of the smart phone operating system market, which is currently dominated by the likes of Palm, BlackBerry and Symbian.
The growth in smart phone use has impacted on the sales of personal digital assistants (PDAs) without phone capabilities, according to analyst Gartner.