With strong growth from software investments, worldwide mobility revenue is forecast to reach $1.7 trillion in 2020, according to new projections by International Data Corporation (IDC).
According to the latest Worldwide Semiannual Mobility Spending Guide from IDC, worldwide mobility revenues are expected to grow from $1.5 trillion in 2016 to more than $1.7 trillion in 2020.
This IDC says represents a compound annual growth rate (CAGR) of 2.2%, or roughly $40 billion in annual revenue gains.
[quote font=”georgia” font_size=”22″ font_style=”italic” align=”left” arrow=”yes”]IDC says that 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.[/quote]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, 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 report reveals.
It further says that the strongest growth within the software category will come from investments in mobile application development platforms, mobile enterprise applications, and mobile enterprise security.
Carrie MacGillivray, vice president, Mobility & Internet of Things says, “Despite the belief that the mobility market is maturing, there is still plenty of opportunity to drive enterprise spend especially at the software layer. By 2020, the software market will increase spend by 15%, driven by mobile application development and mobile security capabilities.”
IDC says that 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.
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, according to the IDC report.