Digital Lifescapes

ABI Research has been studying how mobile device usage is influencing the ways in which consumers access and interact with social networking services. The results of their latest market study provide insights that will help marketers understand the implications of several closely related trends -- both near-term and long-term. Social networking may soon become a predominantly mobile activity -- that trend could directly impact the current business models and ultimately effect numerous key players within the leading platform ecosystems. The number of people accessing social networks from mobile phones will exceed 550 million in 2011, and that figure will more than triple to over 1.7 billion by the end of 2016. That means over two-thirds of the global user base of social networks will use smartphones and other mobile handsets to access these services. For Facebook, the growing importance of mobile is both an opportunity and a serious strategic challenge. On one hand, m...

The pay-TV set top box market is mature -- and has been for some time now. That is to say, it has reached a state of equilibrium. Or put another way, there's an apparent absence of significant new growth. Moreover, some industry analysts might say that meaningful innovation has been missing from this space for a very long time. That’s not to say, however, that there aren’t some segments of the business that are innovating and growing. New In-Stat research has identified the IP set top box market segment as one of the few that is still growing. Based upon the findings of their latest market study, In-Stat is forecasting that worldwide unit shipments will surpass 21 million in 2011. “The recent up-tick in IP set top boxes is a result of Telcos gaining subscribers from cable and satellite providers, as well as replacing the boxes of current subscribers,” says Michelle Abraham, Research Director at In-Stat. Future increases for IP set top box (STB) shipments will lik...

Consumers are now viewing video entertainment at a variety of different locations -- each having unique connectivity and display characteristics. Moreover, various new consumer electronics devices -- and a growing list of video formats -- will increase the number of profiles required to be generated by multiformat transcoders. While processor and product improvements will enable more from each transcoder, they will not be enough to keep up with the demand, requiring purchases of more processing capability by streaming video service providers. According to the latest market study by In-Stat, the file multiformat transcoder market grew at a rate of 72 percent in 2010 -- due mostly to the growth in multiscreen services from online video content providers and traditional pay-TV service providers. In-Stat also forecasts that worldwide revenue for both live and file multiformat transcoders will continue strong growth over the forecast period. “Pay-TV service providers an...

Infonetics Research released excerpts from its second quarter (2Q11) mobile broadband devices and subscribers report -- which tracks the market performance of smartphones, mobile broadband PC cards, embedded mobile broadband cards and devices, mobile broadband routers, and mobile broadband subscribers. "The clear synergy between smartphones and tablets, with their shared touchscreen features and common application environments, make them by far the hottest segments of the mobile broadband device market," said Richard Webb, Infonetics Research directing analyst for microwave and small cells. Just as Apple iPhone users are more likely to buy an iPad as their tablet, so too are Android users more likely to buy Android-based tablets. It is increasingly important for vendors to have a strong portfolio in both market segments to leverage this synergy. Highlights from Infonetics latest market study include: A total of $31.4 billion was spent on smartphones in 2Q11,...

The latest global market study by Point Topic has revealed that the apparent differences in affordability of broadband services around the world highlights the stark contrast in prices -- and the resulting impact on local service adoption. Clearly, the challenge for broadband service providers and government policymakers will be to seek out ways to make broadband internet access more affordable -- as national leaders attempt to increase their market penetration and resulting economic impact. “Broadband prices can be over a thousand times higher in real terms in the poorer countries,” said Oliver Johnson, CEO at Point Topic . Analyzing tariff data from the middle of 2011, Point Topic has compared the cost of 12 months of subscription to the least-expensive, and usually slowest, fixed broadband service across various world markets. Converting prices to purchasing power parity (PPP) equivalents for over 2,000 tariffs from around the world and then combining the results with...

There's huge potential to evolve the healthcare industry by utilizing more appropriate information and communications technology (ICT), and mobile device applications are an excellent example of that upside opportunity. However, the market for mobile-enabled healthcare has struggled to get gain momentum. Held back by antiquated regulation, personal privacy issues and an apparent lack of mobile standards, industry players -- healthcare providers, pharmaceutical companies, insurers, governmental organizations and others -- have yet to find a clear and coordinated path towards that m-health bonanza. “There have been experiments with mobile programs,” said Victoria Petrock, eMarketer research analyst and author of the new report entitled Mobile Healthcare Marketing: Prescriptions for Health and Wellness on the Go. But many efforts to market and deliver large-scale healthcare via mobile have, to date, been siloed and ineffectively measured.” According to a global survey ...

Worldwide personal computer (PC) shipments are expected to grow by 4.2 percent in 2011 -- down from a February forecast of 7.1 percent, according to the latest market study by International Data Corporation ( IDC ). A combination of declining first quarter shipments, an increasingly conservative economic outlook, the relative saturation among developed market consumers, and competing products will lead to slow growth during the remainder of 2011. For 2012 through 2015, total PC market growth is still expected to fall in the 10 to 11 percent range. Consumer PC purchases have been a cornerstone of growth over the past five years. During this time, a transition to low-cost portables helped drive purchases by new users in emerging markets -- as well as replacement and secondary systems in more mature markets. Consumer PC shipment growth averaged 18.9 percent from 2005 to 2007, almost 7 percent faster than commercial shipments. During 2008 and into 2009, consumer growth was actuall...

Worldwide media tablet shipments rose by 88.9 percent on a sequential basis and 303.8 percent year over year in the second calendar quarter of 2011 (2Q11) to 13.6 million units, according to the latest market study by International Data Corporation ( IDC ). Based on this strong performance and an improved outlook for the second half of the year, IDC raised its shipment forecast for 2011 to 62.5 million units -- up from a previous projection of 53.5 million units. Shipments in the second quarter were driven by continued robust demand for the Apple iPad 2 -- which saw shipments reach 9.3 million units, representing a 68.3 percent share of the worldwide market (up from 65.7 percent the previous quarter). Research in Motion entered the media tablet market in 2Q11 with its PlayBook product, taking a 4.9 percent share of the market. Android-based media tablets share decreased to 26.8 percent, down from 34.0 percent the previous quarter. Looking forward to the second half of 2011, ...

Modernizing the legacy electrical grid systems around the world is long overdue, with many parts of the grid more than 100 years old. Undertaking this huge transformation hasn’t been easy to accomplish or attainable at a low cost. Not only does the world’s electrical system require updates due to age, but as usage increases, and the building of more power plants becomes more difficult, upgrading the "Smart Grid" becomes a requirement, not an option. Deploying the smart grid requires hundreds of millions of smart meters. Worldwide, smart meter deployments continue to grow, driven in large part by very large deployments in China where new In-Stat research forecasts that the deployment of smart meters will reach 280 million by 2016. “The smart meter is at the heart of the smart grid transformation, and even though infrastructure and customer education are also important, in these early days it’s all about the smart meter,” says Allen Nogee, Research Director at In-S...

There's a transition taking place across the whole mobile phone subscriber market in Europe. This change includes both an upside and a downside for service providers and device manufacturers. Western European feature phone shipments continued to decline sharply in 2Q11, as consumers increasingly move to smartphones -- according to the latest market study by International Data Corporation (IDC). Feature phone shipments were down 29 percent -- to 20.4 million units in 2Q11 -- while smartphone shipments were up 4 percent -- to 21.8 million units from a year ago. The total Western European mobile phone market, however, declined 3 percent year on year to 42.2 million units in the quarter. This is the first time that smartphone shipments have surpassed feature phone shipments in Western Europe, representing 52 percent of total mobile phone shipments. All European countries are seeing increasing smartphone adoption, as consumers go for Android-based devices and the iPhone from Ap...

The worldwide mobile messaging market was worth $179.2 billion in 2010, it's forecast to rise to $209.8 billion in 2011, and on to $334.7 billion by the end of 2015 -- at a CAGR of 13.3 percent between 2010 and 2015, according to the latest market study by Portio Research . The Asia Pacific region generated the highest mobile messaging revenue in 2010 and Latin America produced the least. Among the four mobile messaging service types, SMS yielded the highest revenue for operators in 2010, followed by MMS, then mobile e-mail and mobile instant messaging (IM). SMS made the highest contribution to worldwide mobile messaging revenue in 2010 with a 63.9 percent share, followed by MMS with 18.1 percent. Mobile e-mail revenue made up 14.2 percent, and mobile IM’s 2010 share was 3.8 percent. Clearly, basic text messaging (SMS) is still the core revenue generating messaging service. In 2010, worldwide SMS revenue stood at $114.6 billion and is forecast to grow at a CAGR of 6.8 p...

U.S. mobile network service providers have reached an important crossroads -- they now have a clear software operating system (OS) choice: but which ecosystem will they favor going forward, Apple's or Google's? By the end of 2011, the iPhone will no longer be the number one smartphone in the U.S. marketplace. According to the latest market share estimates by eMarketer , with Google’s Android operating system surging ahead to first place, there's no compelling reason why network operators must concede to the numerous demands of Apple and its walled-garden business model. Google Android will be installed on 37 percent of all smartphone handsets in the country by year-end -- up 13 percentage points over 2010. Apple will likewise see its OS increase share, but only slightly -- from 28 percent of the market last year to 29 percent this year. Apple's iOS will continue to inch upward in market share through 2013, but by that time Google Android will hold more than ...

Due to continued economic challenges, typical funding for municipal government infrastructure spending has been very limited. However, several forward-looking cities are currently moving ahead with plans to position their communities for the future -- while others are actively preparing to follow their lead. A total of $8.1 billion was invested in Smart City technologies during 2010 across the globe, by 2016 that investment is forecast to reach $39.5 billion -- according to the latest market study by ABI Research . A smart city is determined by six dimensions: smart economy, environment, governance, lifestyle, transportation, and community. There are currently 102 smart city projects worldwide, with Europe leading the way at 38 projects, North America at 35, Asia Pacific at 21, the Middle East and Africa at six, and Latin America with two. Some prime examples of local governments that are undertaking smart city projects are Holyoke, Massachusetts and Amsterdam in The N...

According to the latest market study by ABI Research , the HbbTV standard is having an impact on increasing the consumers' interest and adoption for connected TVs. In Germany and France, where HbbTV has thus far had the greatest traction, connected TVs enjoyed ongoing demand by a broad cross-section of consumers. In France, connected TV penetration was highest amongst the surveyed countries -- with 22 percent of respondents who have a wired or wireless home network. In terms of usage, 41 percent of French respondents with a TV connected to their home network browse the Internet -- which came in second only to viewing over-the-top online video (54 percent). While internet connectivity brings a wealth of new features and opportunities to the consumer electronics (CE) market, this trend also engenders potential risks. In recent months, some high profile security breaches have brought to light these issues and while consumers have expressed concerns, these reservations ...

Today there are many ways to create and share digital multimedia content. Beyond the usual digital camera or camcorder format, visual content can easily be authored and edited on notebook PCs, on media tablets and even on smartphones. Using the latest software or mobile apps, the users of these devices that are equipped with visual capture capabilities are producing HD images and video content that must be stored or archived somewhere. From a historical context, when the number of web-enabled devices in the home was minimal, consumer networked-attached storage (NAS) offered very little value. Free or low-cost online media storage has become the preferred solution for many. However, as the number of portable consumer electronics (CE) and computing devices in the home explodes over the next few years, the need and use for in-home network-attached centralized storage will become more practical for one reason: multimedia content access. According to the latest market study by I...

Media tablet owners are more engaged with retail brands, making more purchases and website visits compared with mobile smartphone users, according to the latest market study by eDigitalResearch and IMRG in the UK. The results show that 30 percent of tablet users have used their device to shop online, while currently only 25 percent of smartphone owners have used their phone to do the same. Similarly, almost half (48 percent) of tablet owners have used their devices to research products in-store, but only 29 percent have done the same via their smartphone. Derek Eccleston, Research Director at eDigitalResearch comments, “While tablet device ownership remains relatively low compared to the number of consumers with smartphones, it is clear that tablet owners have the willingness and confidence to shop online via their devices." The savvy consumer now has the power to shop where, when and how they like -- therefore it’s important that brands and retailers have a strong presenc...

The global IPTV market will grow to $49 billion in service revenues and 113 million subscribers in 2015 -- as multiscreen video usage drives wireless services to new highs. According to the latest market study by MRG , systems revenue for the seven key IPTV products analyzed will grow to $4.8 billion in 2015, with set-top boxes (STB) representing about 60 percent. As consumers add Wi-Fi for using smart devices within their homes, market growth continues largely due to trends toward the mobile lifestyle habits of 18-55-year-olds. Based on semiannual updates of major global Operators and their differentiating services and updated subscriber counts, Europe remains ahead of Asia by 2015 in IPTV subscribers -- partially due to continued regulatory confusion in Asia. By 2015 worldwide, at least 25 IPTV Operators will have over 1 million subscribers, with 9 having over 3 million, the U.S. having 2 Operators with over 7.5 million each and Europe having 12 IPTV Operators wit...

Mobile coupons currently represent a small portion of marketer's digital promotions, but usage is growing at a fast pace. The adoption of redeeming retailer coupons extends the trend of searching online for product discounts -- which emerged as a widespread, money-saving activity during the U.S. economic downturn. "Even as the sputtering economy attempts its recovery, the popularity of couponing has continued, spurred in part by the burgeoning daily deals space," said Noah Elkin, eMarketer principal analyst. "Mobile coupons will play a central role in broadening the appeal and acceptance of digital coupons among shoppers." eMarketer estimates that nearly 20 million American adults will redeem a mobile coupon this year -- including coupons or codes received via SMS, applications and mobile web browsers; quick response codes for redemption online or offline; and group buying coupons purchased via mobile. By 2013, the number using such coupons will ...

comScore reported key trends in the U.S. mobile phone industry during the three month average period ending July 2011. The study surveyed more than 30,000 U.S. mobile subscribers and found Samsung to be the top handset manufacturer overall with 25.5 percent market share. Google Android continued to gain ground in the smartphone market reaching 41.8 percent market share. During the same period, 234 million Americans ages 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 25.5 percent of U.S. mobile subscribers (up 1.0 percentage points), followed by LG with 20.9 percent share and Motorola with 14.1 percent share. Apple strengthened its position at #4 with 9.5 percent share of mobile subscribers (up 1.2 percentage points), while RIM rounded out the top five with 7.6 percent share. 82.2 million people in the U.S. owned smartphones during the three months ending in July 2011, up 10 percent from the preceding three month period. Google...

Readily available online digital video distribution now enables anyone to access more content, on more devices, and more freely in more places, than ever before. This increase in access has made rich media content more ubiquitous, but increased distribution and availability is only a part of the market development growth story. Equally important is how, and on what devices consumers are accessing this content, and the increasing role of new mobile devices that are specifically designed for digital media consumption. According to the latest market study by In-Stat , their research uncovered that 50 percent of media tablet owners are viewing video feature-length movies on their device, and TV shows as well. Media tablet and smartphones are becoming vital new screens for streaming online video consumption, and are also functioning as personal interaction devices for video-centric social networking and applications. “Tablets, in particular, have become a primary video ...

The global Wi-Fi hotspot market continues to surge forward with phenomenal growth in both footprint and usage. Over the past several years, growth in the hotspot market has largely been driven by wireless and broadband providers embracing Wi-Fi as both a competitive differentiator, and an enhancement to core services. According to the latest market study by In-Stat, their research forecasts that this trend will continue -- as usage will increase to nearly 120 billion connects in 2015. “The hotspot market is in a continuous state of flux. Now over a decade old, the market is still undergoing significant changes in usage and business models,” says Amy Cravens, Senior Analyst at In-Stat . Wi-Fi hotspots have become a service used to attract demand for other product offerings, rather than just being a standalone offering. Whether the primary product is broadband, mobile service, or a Starbuck's cup of coffee, Wi-Fi hotspot access is being used globally to attract new ...

In the U.S.market during 2010, media tablet and eReader device owners tended to be male and on the younger side. But according to the latest market study by Nielsen , a quarterly survey of mobile connected device owners, this is no longer the case. Back in Q3 2010, for example, 62 percent of media tablet owners were under the age of 34 and only 10 percent were over the age of 55. By Q2 2011, only 46 percent of media tablet owners were under the age of 34 and the percentage of those over 55 had increased to 19 percent. Looking at the data by gender underlines key changes in the eReader category. Sixty-one percent of all eReader owners are now female, compared to a mere 46 percent in Q3 2010. By contrast, smartphone owners are now evenly split between male and female and media tablets remain primarily male.

Creative design and enhancements to the user interface has changed the look and feel of mobile phones. As a result, touchscreens can claim as much credit for the booming success of smartphones as can 3G data speeds. Since the launch of the Apple iPhone, smartphones with touchscreens have gone from 7 percent of the total smartphone volume in 2006 to 75 percent in 2010. They were a key driver to the smartphone market growing more than 325 percent over that period. During the next five years, touchscreens will be as pervasive in smartphones as Wi-Fi chipsets are today -- reaching 97 percent of all smartphones by 2016. The screen is the point of fulfillment for all that a mobile device promises to deliver to its user, so there is little surprise in the impact it can have on its success. However, it was the evolution of screen and touch technologies that triggered the market's rapid growth. The more economical resistive touch technology has been almost universally replaced in sm...

According to the latest assessment by eMarketer , advertisers will spend $1.1 billion on various mobile platforms this year. The upside potential for growth is of great interest to the whole mobile marketing ecosystem. Display ads, including those viewed in browsers, are expected to post solid new growth -- they're predicted to soon become the top mobile advertising format. With smartphones able to perform a variety of tasks, from communicating to information-seeking to shopping and beyond, consumers are spending more time using these multifaceted communication devices. And, forward-looking marketers now have a greater chance of reaching consumers via the mobile device channel -- particularly with the increased adoption of media tablets, such as the Apple iPad. According to research from Yahoo! and Ipsos, smartphone users spend the bulk of their mobile time (38 percent) connecting with other people -- including by voice, SMS, IM, email or social media. They spend j...

Many analysts predicted the demise of the e-reader product category when Apple launched the iPad -- igniting the media tablet competitor frenzy. The analysts assumption, an erroneous one, was that the buyer of each product was essentially the same. Now, as the reality sets in, opinions have evolved. While the tablet market’s growth has had some impact on expected e-reader shipments worldwide, the two devices are inherently different. Each device segment targets a different type of consumer. Standalone e-reader devices target the avid book and periodical readers -- to whom the reading experience is central -- while tablets are targeted towards those consumers who prefer a richer multimedia consumption experience. According to the latest market study by In-Stat , device component vendors are benefiting from the demand in both categories. As an example, they're forecasting that the combined semiconductor opportunity for media tablets and e-readers will approach $16 billio...

Thirty-five percent of UK consumers will make more online purchases via their smartphones this upcoming holiday season, according to the latest market study by eDigitalResearch and IMRG, as the popularity of shopping and browsing on mobile devices continues to increase. The latest results show that 61 percent of the 6,000 people surveyed will browse more frequently via their phone over the next 12 months, with just under half (49%) of these making a purchase from their smartphone as well. Derek Eccleston, Research Director at eDigitalResearch explains, “Christmas is by far the most important time for retailers. This year will be one of the first Christmas shopping periods where mobile shopping will be readily available to the majority of consumers. The rapid development in mobile technology and the quick uptake by retailers of mobile sites and retail apps means that more and more brands have the opportunity to connect with potential customers, encourage purchases and increase ...