Worldwide mobility revenues are forecast to grow from $1.5 trillion in 2016 to more than $1.7 trillion in 2020, according to the latest market study by International Data Corporation (IDC). That's a compound annual growth rate (CAGR) of 2.2 percent -- or about $40 billion in annual revenue gains.
Mobility revenues will primarily come from purchases of hardware and connectivity services. However, software revenues will likely experience double-digit growth, as app developers meet the mobility needs of both consumers and businesses.
Software revenue growth will result from investments in mobile application development platforms, new mobile enterprise use cases, and mobile enterprise security solutions. By 2020, spending on software will increase by 15 percent, driven by mobile DevOps and mobile security capabilities.
Mobility Solutions Market Development
"Despite the belief that the mobility market is maturing, there is still plenty of opportunity to drive enterprise spend especially at the software layer," said Carrie MacGillivray, vice president at IDC. 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.
According to the IDC assessment, the industry that will deliver the fastest revenue growth over the 2015-2020 forecast period is healthcare (5.1 percent CAGR), followed by telecommunications, professional services, and utilities.
Within the U.S. market, while the healthcare provider industry is still expected to be among the top 5 growth areas for mobility, spending is starting to temper. However, there is more growth in the securities and investment services industry, where mobility projects are focused on enabling more productivity.
Outlook for Mobility Applications Growth
From a company size perspective, large and very large businesses will see spending growth that surpasses the overall market. These firms will be investing in mobile solutions that provide new capabilities to customers and partners.
IDC expects small offices with 1 to 9 employees to continue delivering the largest share of global mobility revenues, as these businesses invest in a variety of mobile devices and apps, as an affordable alternative to traditional desktop IT solutions.
The Asia-Pacific region (excluding Japan) -- led by strong investments in China -- will be the largest overall mobility market in terms of total 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, with a 4.7 percent CAGR. Latin American and the Middle East and Africa will also see revenue growth greater than the overall market.