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According to Counterpoint Research's Market Forecast 208, 300 million smartphones, which equates to 19 percent of the total to be sold this year, will have a notch display.
The report said that Huawei, Oppo, Vivo and Xiaomi smartphones with "notch displays" are likely to exceed 100 million units in sales in 2018.
Android smartphones will contribute to 55 percent of such devices with Apple accounting for the rest, the report added.
Apple, however, will lead the segment by likely capturing 45 percent of smartphones with notch displays, as we expect Apple will adopt the notch display in its next series iPhones, the report further added.
The adoption of notch displays in sub $200 price bands from tier-one brands will depend on a combination of competitive pressure and consumer feedback.
Android creator Andy Rubin's Essential Phone was first to embrace the "notch display".
iPhone X users decided to embrace the notch and the trend has recently shifted to Android camp with tier-one brands launching their flagships with notch displays.
"Smartphones with the notch display emerged because of Apple. Android OEMs have followed Apple's design lead, not having too many other options to choose from, Tarun Pathak Associate Director said.
He said, "We expect Android devices with notch display to stay around at least for a couple of years. Google too, has recently announced the first Android P developer preview, where it is offering native support for notches.
Android P will try to bring support for the notch, but to reach mass market it will also have to be adopted in Android One and Android Go devices."
Smartphones such as Asus Zenfone 5 was launched during Mobile World Congress (MWC), followed by Oppo F7, Vivo V9, Huawei P20 and P20 Pro are some devices that feature notch screen design.
The report also pointed out that the reason for using a notch display varies among OEMs like Apple, it was the result of a complex trade-off - moving to a full screen meant losing the home button and its fingerprint sensor.