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Showing posts from March, 2016

New Role for Smartphones in Smart Home Management

Many more consumer electronics devices will become part of the typical home network, as the Internet of Things (IoT) phenomena gains momentum. Meanwhile, the desire to create intuitive home spaces continues to increase, which in turn creates opportunities for more vendors to gain a share of the smart home market. Nearly two-thirds (64 percent) of smart home product owners used a smartphone to control or monitor their home automation devices, according to the latest market study findings by The NPD Group. Additionally, 73 percent of smart home owners already use voice commands, with 61 percent of those consumers expressing an interest in wanting to use voice to control more products in their homes. Smartphone App Software Integration "This reliance on smartphones to control and monitor the smart home is due, in part, to app compatibility, as nearly all home automation devices have an iPhone or Android app,” said John Buffone, executive director at The NPD Group . NPD beli...

Platform as a Service Evolves by Combining Cloud Apps

Widespread use of the Internet of Things (IoT) will drive more cloud computing Platform as a Service (PaaS) adoption. Gartner has forecast that 50 percent of all new applications developed on PaaS will be IoT related by 2020 -- thereby disrupting traditional IT architecture practices. Gartner analysts believe that IoT adoption will drive additional use of PaaS to implement IoT-centric business applications built around event-driven architecture and IoT data -- instead of business applications built around traditional master data. Most new solutions will be implemented on a multi-functional PaaS that is a hybrid of application platform as a service (aPaaS), integration platform as a service (iPaaS), IoT device management, orchestration and business process management services as a platform (bpmPaaS), database PaaS (dbPaaS) and analytics services. Cloud PaaS Market Development Predictions Through 2018, according to the Gartner assessment, more than 70 percent of IT organizations ...

New Automobile Software Upgrade Market Opportunities

As the Software Over-the-Air (SOTA)-enabled vehicles market gains momentum, ABI Research forecasts that 203 million OTA-enabled cars will ship by 2022. Both SOTA and Firmware Over-the-Air (FOTA) will see a spike, with nearly 180 million new cars supporting SOTA and 22 million FOTA by 2022. Beyond Tesla, car OEMs will primarily focus the next three to five years on SOTA versus the still nascent FOTA upgrade. Moreover, the majority of new vehicles will include computer software that will require periodic updates. "Three factors changed the course of the automotive industry and paved the way for the future of OTA: recall cost, Tesla’s success as the foundation of autonomous driving, and security risks based on software complexities," said Susan Beardslee, senior analyst at ABI Research . It is a welcome transformation, according to the ABI assessment, as OTA is the only way to accomplish secure management of all connected car software in a seamless, comprehensive, and full...

Global Mobile 4G LTE Connections Exceeded 1 Billion

5G Americas shared mobile subscriber data for the end of year 2015, which included an industry milestone with LTE connections reaching over one billion worldwide. North America greatly contributed to global LTE connections with 237 million of the 1.1 billion, as of the fourth quarter (4Q) 2015. North America Market Update "It is no surprise that LTE has become the standard mobile technology for the North America region and continues to flourish as more consumers are adopting the technology year after year," said Chris Pearson, President of 5G Americas . The rapid increase in 4G LTE connections, not only in North America but worldwide, is leading the industry on the right track to the commercial standardized deployment of 5G in 2020 and beyond. LTE in North America covers 54 percent of all mobile connections in the region. This data compares to the next leading world regional markets of Western Europe and Oceania & Asia Pacific both with 24 percent market share for...

Large Smartphones are Driving Mobile Video Usage

Mobile network service providers in the United States are making adjustments to their offerings, to better accommodate the growing customer demand for streaming video. Meanwhile, many savvy smartphone users now reduce their cellular data service costs by connecting to Wi-Fi networks. Eighty-one percent of all American smartphone users now stream video on their devices, according to the latest market study by The NPD Group. The trend gained new momentum during the course of 2015. Video Usage Demographic Segmentation This smartphone use-case is being driven primarily by device users who are 25 and younger, who spend twice as much time watching video content on YouTube and Netflix mobile apps, when compared to users who are over the age of 25. As a result of this uptick in video consumption, smartphone users who are 25 and younger outperform older age groups in terms of cellular and Wi-Fi data consumption levels generated by video applications. These users consume, on average, 6...

Wearable Device Shipments will Exceed 200M by 2019

Wearable devices and their associated software applications are destined for increased adoption. Part of an emerging market of apps within the Internet of Things (IoT), these devices will generate significant amounts of user data that will further fuel an expansion of the mobile cloud phenomena. Worldwide shipments of wearable devices will reach 110 million by the end of 2016 -- that's a 38.2 percent growth over 2015 market performance. An expanding lineup of vendors combined with consumer demand will generate double-digit growth, culminating in shipments of 237.1 million wearable devices in 2020, according to the latest worldwide study by International Data Corporation (IDC). The rapidly evolving market will also be driven forward by the proliferation of new and different wearable products. Watch and wristband growth will reach a combined total of 100 million shipments in 2016 -- that's up from 72.2 million in 2015. Other form factors -- such as clothing, eyewear, and he...

How the Sharing Economy will Gain New Momentum

Airbnb did it to the hospitality industry. Then, Uber did it to taxi services. Now driverless cars are going to totally disrupt the whole automotive industry, propelling car sharing services forward as the ultimate, mainstream transportation mode. This new car sharing economy is already well in motion. According to the latest worldwide market study by ABI Research, they are forecasting that 400 million people will rely on robotic car sharing by 2030. "The new car sharing economy happens in three phases: street rental service, ride sharing service, and robotic service," says Dominique Bonte, vice president at ABI Research . "The automotive industry is in the process of merging phases one and two, with robotic service to become the ultimate form of transportation for its availability, convenience, and affordability." The Sharing Economy in Action Zipcar, the world's largest car sharing and car club service, is a prime example of street rental service. Inte...

Two Companies Monopolize Smartphone Apps in America

Smartphones are in the hands of just about every American who wants one. The most important piece of software, from a consumer's perspective, is likely to be a web browser. Most of these devices have a small number of software apps installed, and few are actually used on a regular basis. comScore released data on key trends in the U.S. smartphone industry for January 2016. Looking back on 2015, not much has changed. Apple ranked as the top smartphone manufacturer with 43.6 percent OEM market share, while Google Android led as the number one smartphone platform with 52.8 percent platform market share. Facebook ranked as the top individual smartphone software application. Once again, Google and Facebook dominate the list of top smartphone apps in America. Smartphone OEM Market Share 198.5 million people in the U.S. owned smartphones (79.1 percent mobile market penetration) during the three months ending in January. Apple ranked as the top OEM with 43.6 percent of U.S. smar...

Smartphones and Phablets Compete with PC Spending

The outlook for personal computer (PC) shipments continues to improve slightly, as competition from other devices eases in some markets, upgrades to new models boost demand, and economic conditions around the world stabilize or improve somewhat. But many challenges still remain. The decline in PC volume since early 2012 is expected to linger throughout 2016, with later years offering few opportunities to boost volumes as economic issues and other consumer electronic products sap the growth potential, according to the latest market study by International Data Corporation (IDC). In the near-term, expectations for PC growth within the fourth quarter of 2015 and early 2016 were already fairly low, as notebook computers have struggled with competition from very capable media tablets and feature-rich smartphones or phablets. The impact of falling commodity prices and foreign currencies has further depressed demand, and the ability to upgrade older hardware to Windows 10 or Linux has pr...

Activity Tracking Devices Create a Mass of New Data

More people are wearing new personal activity tracking devices. According to the latest market study by The NPD Group, annual 2015 unit sales of connected activity trackers experienced impressive growth of 85 percent versus 2014 -- that's despite a hike in the average selling price (ASP) from $96 to $109. "The increase in ASP speaks to these devices becoming more sophisticated, and that consumers are looking for better-quality devices, not just entry-level products," said Ben Arnold, executive director at The NPD Group . "This, combined with unit growth, shows that prices aren't falling to drive demand -- demand is increasing along with rising prices." Fitbit remained the leading brand in connected activity trackers in 2015, accounting for 79 percent of sales. The company has been the market leader in connected activity trackers since 2014, growing market share by more than 20 points since that time -- despite the entrance of new competing products in th...

PC Market Forecasts Now Reflect the Upside Reality

According to the latest worldwide market study by ABI Research, 163 million notebook personal computers (PCs) shipped globally during 2015. The majority of shipments were laptop computers, which constituted nearly 80 percent of the category. The data suggests that, despite a common belief that it will only be a matter of time before PCs meet their demise, the market still has pockets of growth where demand remains strong. That being said, it continues to evolve -- overall shipment volumes have not recovered from prior peaks. As a result, expectations have been lowered. "Industry experts greatly exaggerated the death of the PC," says Jeff Orr, research director at ABI Research . Personal Computer Market Development Trends ABI analysts now believe that the PC platform is improving by incorporating designs to provide flexibility for productivity purposes, while also adapting its shape to support tablet-like, touch-screen applications. Low-cost Chromebooks and high-cost...

Digital Disruption Drives Government to Cloud Services

Across the globe, many CIOs are embracing rapid change. Digital transformation is having a disruptive impact on organizations, but it's often still at the early stages of market development within government agencies worldwide, according to the latest market study by Gartner. Big data analytics, IT infrastructure refresh and cloud computing continue to be the top three business technology priorities for government CIOs, but shortages of skilled technical staff and rigid organizational cultures are among the major barriers to implementing digital business agendas. The government IT survey data indicated that leveraging digital technologies to transform traditional operational and service models has risen to the top of the business agenda for many elected leaders and appointed senior public officials. "Government organizations require the sustained focus and commitment of successive administrations to realize the cumulative, step change benefits of moving from system or pr...

Software Defined Infrastructure Gains Momentum in 2016

Software is the key to advancing digital business transformation progress. According to the latest worldwide market study by 451 Research, 67 percent of enterprises will increase spending on software defined infrastructure (SDI) during 2016, resulting in a 14.4 percent growth of the related IT budget investment. SDI involves the virtualization of all hardware resources, combined with elastic scaling and IT management automation. As such, 451 Research analysts found that SDI is typically realized via the implementation of multiple technologies, products and associated professional services. Though computer server virtualization within data centers has been the customary SDI starting point for most enterprises, additional software-defined approaches have emerged in recent years -- including software-defined networking (SDN) and software-defined storage (SDS). Exploring SDI Market Development Drivers The majority of respondents to the study (65 percent) cited improved agility and...

Cognitive Systems Revenue will Reach $31.3B in 2019

Now there's an effective approach to making sense of all the unstructured 'big data' that many organizations have captured and stored, but have yet to interpret and apply in a meaningful way. Cognitive systems and cloud-based object storage technologies are going to transform the analysis of very large data sets. It's a very significant breakthrough. International Data Corporation (IDC) has identified cognitive computing as one of six 'innovation accelerators' that will drive digital business transformation by opening new revenue streams, creating information-based organizations, and changing the way work is performed in a variety of key industries. IDC has forecast that global spending on cognitive systems will reach nearly $31.3 billion in 2019 with a five year compound annual growth rate (CAGR) of 55 percent. The latest projections expand on IDC's previous cognitive software forecasts by including expenditures for cognitive-related hardware and servic...

Evolving M2M Apps for Autonomous Parking Technology

There are numerous travel-related applications for machine-to-machine (M2M) technologies within the Internet of Things (IoT) domain. Many of these apps include enhancements to automobiles. ABI Research forecasts shipment of new cars featuring Autonomous Parking technologies will grow at 35 percent compound annual growth rate (CAGR) between 2016 and 2026, and for revenues to growth at a 29.5 percent CAGR. ABI Research identifies three phases of autonomous parking, with each successive stage set to gradually displace the former and all three coexisting to some degree over the next decade. Ultimately, technology will reach a point in which the car parks itself entirely, with no driver assistance or presence within the car required. In Phase 1, the car will provide steering assistance with the driver still inside the vehicle and in control. Phase 2 shows autonomous parking with the driver outside the vehicle but still in control, and Phase 3 introduces autonomous valet parking in which...

Internet of Things Market Development Update for 2016

A growing number of technology vendors and digital transformation consultants are very active in the Internet of Things (IoT) marketplace. New market research indicates that IoT is starting to move toward mainstream adoption within several key industries, according to the latest global market study by Gartner. That being said, although only 29 percent of Gartner survey respondents say they're currently using IoT technologies, an additional 14 percent are planning to implement IoT in the coming 12 months, with a further 21 percent planning to deploy after 2016. Organizations adopting IoT will grow 50 percent during 2016, reaching 43 percent of respondents overall. In aggregate, 64 percent plan to eventually implement IoT. Nonetheless, another 38 percent have no plans to implement IoT, including 9 percent that see no relevance whatsoever in these technologies. Lack of Business and Tech Talent with IoT Skills "While there is near universal acceptance of the importance of ...

Ongoing Disruption of the U.S. Video Distribution Market

Video entertainment in the typical American home has changed dramatically during the last few years. Streaming subscription video content to a TV set is now commonplace. There are several market drivers that are apparent, as a result of the consumer transition to over-the-top (OTT) video. The incumbent service providers had initially ignored the trend. Pay-TV providers had hoped that the baby-boomers would continue to tolerate perpetual price increases. Television broadcasters assumed that millennials would simply learn to accept the twenty minutes of commercial advertising that interrupts every hour of TV entertainment. In hindsight, both of these scenarios actually helped to fuel the introduction, market development and ongoing adoption of alternative -- often much lower-cost and more appealing -- video entertainment offerings. "Ownership of connected televisions and streaming media players is accelerating while the availability of streaming content is simultaneously expan...

Robotic Systems Demand is Growing Rapidly Worldwide

Perhaps you've noticed, cognitive computing and robotics have become a hot topic. While much of the underlying technology originates from North American vendors, growing adoption across all industries is now a global phenomena. International Data Corporation (IDC) has identified robotics as one of six Innovation Accelerators that will drive digital transformation, by enabling new business model development and changing the way work is performed. The growth in robotic application adoption is being driven mainly by increasing labor costs, shortage of skilled job candidates, declining prices of robotic systems, and by strategic national economic development initiatives -- such as the current Industry 4.0 revolutionary trends. Robotic Technology Market Development IDC forecasts the EMEA (Europe, the Middle East, and Africa) region spending on robotics and related services will grow at a compound annual growth rate (CAGR) of 13 percent from nearly $14.6 billion in 2015 to $23.8 ...

How Virtual Reality Apps will Enhance Mobile Video

The mobile video experience is evolving rapidly. Virtual reality (VR) applications gained new momentum at the recent Mobile World Congress (MWC) event in Barcelona, Spain. Mark Zuckerberg spoke about the rising popularity of 360-degree video, and HTC demonstrated new apps for mobile gamers. Given the current growth trajectory in the market, mobile VR device shipments are forecast to reach more than 50 million by 2020 -- that's a CAGR of 84.5 percent, according to the latest study by ABI Research. The introduction of Google Cardboard served as a catalyst for low-cost VR software applications. Moreover, Google has announced that they reached a milestone of 5 million Cardboard shipments this January. Impressive results, since Cardboard was launched at the Google I/0 event in 2014. Emerging Ecosystem of Mobile VR Developers "The VR content ecosystem is opening up to include casual and traditional VR gaming, as well as education experiences," said Sam Rosen, vice presi...

Smartphone Market Growth Reaches a Turning Point

In developed markets, people who want a smartphone have one. And, the majority don't crave the new models. Demand for new devices still comes from the emerging markets that have yet to reach saturation. According to the latest global market study by International Data Corporation (IDC), 2015 will therefore likely be the last year of double-digit growth. IDC reports that 1.44 billion smartphone were shipped worldwide in 2015, that's up by 10.4 percent over 2014. IDC forecasts 2016 shipments of 1.5 billion, or 5.7 percent growth over 2015. The trend of single-digit year-over-year growth is forecast with volumes growing to 1.92 billion in 2020. Moreover, the global smartphone market will continue to see volumes shifting to the low-end, with the aggregate market average selling price (ASP) dropping from $295 in 2015 to $237 in 2020. Mature markets such as the United States, China, and Western Europe have already reached single digit growth in 2015. Meanwhile, markets such as ...

Update on Global Public Cloud Computing Price Trends

There are a variety of reasons why senior executives and IT managers will choose to adopt cloud computing services. While a business transformation goal is often a high-priority for many, IT investment and operational cost reduction is also very important to most decision makers. Like any other significant procurement, buyers ultimately seek the best value for their IT spend. 451 Research released its latest assessment of the worldwide public cloud computing market, analyzing the variances in service pricing across the globe. The findings show that U.S. cloud service pricing is the most competitive globally, overall. Moreover, on average, it typically costs between 7 percent and 19 percent more to host the same cloud application in Europe and 14 percent to 38 percent more in Asia-Pacific region -- the variance is usually due to the complexity of the cloud application. There are, however, other factors to consider. Regional Assessment of Cloud Offerings According to the 451 Rese...

Emerging Applications for the Connected Car Market

When consumers think about purchasing a new car, they typically give consideration to features that accommodate their lifestyle choices. In 2016, and beyond, wireless connectivity will be a key factor. Besides, the Internet of Things (IoT) phenomenon will be driven by compelling use-cases, not technology. ABI Research is reporting that the global penetration of embedded and hybrid factory installed OEM telematics within new passenger automobiles will exceed 72 percent by 2021. Growth will mainly be driven by key volume car OEMs in the North America, European Union, and China markets. Car brands within these markets showing accelerated growth include GM, which expects to reach 12 million OnStar subscribers globally by the end of 2016, including its Opel brand in Europe and Cadillac in China; and Ford, which claims to have already 15 million SYNC-equipped vehicles on the road worldwide. Connected Car Market Development Trends "While lower cost hybrid approaches remain attrac...

Bank Branches Must Undergo a Digital Transformation

Technology applications within bank branches have evolved to the point where they're now transforming the legacy financial services environment. Advances in big data analytics, high-definition video, and virtual or augmented reality are combining to assist branch employees in the workflow of more complex transactions. Besides, today's retail banking customer expectations about what they need from a branch are shifting rapidly. How financial institutions approach this digital transformation will be of paramount importance throughout the next decade. According to the latest global market study by IDC, by 2019 total IT spending by financial institutions worldwide will exceed $310 billion. IT services will make up one-third of that spending and much of these services will be spent on transforming the institution into digital platforms. Moreover, specific to the bank branch channel, almost $20 billion will be spent worldwide. With such a large investment to be committed to rem...