Story image

Enterprise purchases of hardware driving mobility revenues, IDC says

11 Oct 2016

Global mobility revenues are forecast to grow from $1.5 trillion in 2016 to more than $1.7 trillion in 2020, according to the latest Worldwide Semiannual Mobility Spending Guide from IDC.

The growth represents a compound annual growth rate (CAGR) of 2.2%, or roughly $40 billion in annual revenue gains, the report says.

IDC says mobility revenues will primarily come from consumer and enterprise purchases of hardware (e.g., smartphones, portable PCs, and tablets) and services (e.g., connectivity services).

However, the analyst firm says software revenues will experience double-digit growth over the forecast period as developers race to deliver applications that meet the mobility needs of both groups.

The strongest growth within the software category will come from investments in mobile application development platforms, mobile enterprise applications, and mobile enterprise security.

"Despite the belief that the mobility market is maturing, there is still plenty of opportunity to drive enterprise spend especially at the software layer," says Carrie MacGillivray, vice president, Mobility & Internet of Things.

"By 2020, the software market will increase spend by 15%, driven by mobile application development and mobile security capabilities."

While more than half of all mobility revenues are generated by consumer spending, a number of industries are making significant investments in mobility products and solutions, according to the report.

The banking industry is leading the way at the worldwide level with mobility investments forecast to surpass $100 billion by 2020. Discrete manufacturing, professional services, and retail are the next largest industries in terms of mobility investments.

The industry that will deliver the fastest revenue growth over the 2015-2020 forecast period is healthcare (5.1% CAGR), followed by telecommunications, professional services, and utilities.

"Worldwide, the healthcare provider industry is expected to have the fastest growth in mobility spending over the life of the forecast," says Jessica Goepfert, program director, Customer Insights and Analysis.

"Within the U.S., however, while the healthcare provider industry is still expected to be among the top 5 growth areas for mobility, spending is starting to temper,” she says.

“Rather, we see good activity in the securities and investment services industry, where mobility projects are focused on enabling more productive and meaningful ways to engage with clients. Mobile technologies and solutions offer advisors the ability to access content that they can share with clients anywhere and anytime,” Goepfert says.

From a company size perspective, large and very large businesses (more than 500 employees) will see spending growth that surpasses the overall market, the report shows.

These businesses will be investing in mobile solutions that enhance worker productivity and provide new capabilities to customers and partners, IDC says.

The company says it expects small offices with 1 to 9 employees to continue delivering the largest share of global mobility revenues, as these businesses invest in mobile devices and apps as an affordable alternative to traditional IT solutions.

From a regional perspective, Asia/Pacific (excluding Japan), led by strong investments in China, will be the largest overall mobility market in terms of revenues, which are forecast to exceed $500 billion in 2020.

The United States represents the second largest region, and the region with the strongest growth forecast (4.7% CAGR). Latin American and the Middle East and Africa (MEA) will also see revenue growth greater than the overall market.

Bitglass appoints new cloud, business development leaders
The cloud security company has appointed vice presidents for worldwide channels and worldwide business development.
Ping Identity offerings accelerates cloud MFA and SSO adoption
90% of respondents trust MFA as an effective security control to protect identity data in public clouds, yet only 60% of organisations have formally adopted it.
Ingram launches CRM backup on cloud marketplace
AvePoint Cloud Backup for Dynamics 365 is a multi-tenant solution, designed with specific features to enable channel partners and MSPs.
Trend Micro introduces cloud and container workload security offering
Container security capabilities added to Trend Micro Deep Security have elevated protection across the DevOps lifecycle and runtime stack.
Veeam joins the ranks of $1bil-revenue software companies
It’s also marked a milestone of 350,000 customers and outlined how it will begin the next stage of its growth.
Veeam enables secondary storage solutions with technology partner program
Veeam has worked with its strategic technology alliance partners to provide flexible deployment options for customers that have continually led to tighter levels of integration.
Veeam Availability Orchestrator update aims to democratise DR
The ability to automatically test, document and reliably recover entire sites, as well as individual workloads from backups in a completely orchestrated way lowers the total cost of ownership (TCO) of DR.
Nuix eyes legal sector as eDiscovery demand skyrockets
eDiscovery must encompass so much more than email and documents. If you haven’t looked at text messages and online chats, digital images, mobile devices, data in the cloud and social media, you’re not getting the whole story.