Skip to main content

Mobility Solutions Market will Reach $1.7 Trillion in 2021

Worldwide spending on mobility solutions is forecast to grow 3.2 percent year over year in 2018, reaching more than $1.6 trillion, according to the latest worldwide market study by International Data Corporation (IDC).

This growth is expected to continue through 2021 with investment on mobility-related hardware, software, and services surpassing $1.7 trillion as the market achieves a five-year compound annual growth rate (CAGR) of 2.8 percent.

"The new mobility use cases and technology adoption in enterprises is driving growth in all three facets of the market, from devices to software and services," said Phil Hochmuth, program director at IDC.

Mobility Solutions Market Development

Mobility services will be the largest technology category throughout the 2016-2021 forecast period, accounting for nearly 60 percent of overall mobility spending and surpassing $1 trillion in 2021. The category is dominated by mobile connectivity services, which will deliver more than 90 percent of all mobility services spending.

However, enterprise mobility services, which are focused on the planning, implementation, operation, and maintenance and support of mobile strategies, applications, and devices or the final consumption of services through a mobile device, will see notable spending growth with a five-year CAGR of 15 percent.

Hardware will be the second largest technology category with spending forecast to reach nearly $675 billion in 2021. Smartphones will account for roughly 75 percent of all hardware spending throughout the forecast as consumers upgrade and refresh their mobile phones and enterprises equip their workforce with handheld devices that can run mobile apps and communicate in real time.

While notebooks will see modest spending growth (1.5 percent CAGR) throughout the forecast, tablets are expected to experience a decline (-1.9 percent CAGR).

Despite being the smallest technology category, software will see strong spending growth (14.7 percent CAGR) over the five-year forecast. Mobile enterprise applications will be the largest segment of mobile software spending, growing to $7.1 billion in 2021.

Businesses will also increase their development efforts with mobile application development platforms experiencing a five-year CAGR of 19.5 percent. However, all four software segments, including mobile enterprise security and enterprise mobility management, are forecast to deliver double-digit five-year CAGRs.

Outlook for Mobile Industry Segment Growth

The industry that will see the largest spending on mobility solutions in 2018 (nearly $45 billion) is professional services, followed by banking ($43 billion), discrete manufacturing ($38 billion), and retail ($32 billion).

In all four cases, a majority of the spending will go to mobile connectivity services and devices, primarily smartphones and notebook PCs. Enterprise mobility services will also be a significant spending category as these industries implement and execute their mobile strategies.

The banking and discrete manufacturing industries will each invest more than $1 billion in mobile enterprise applications and mobile application development platforms (combined) in 2018.

According to the IDC assessment, the professional services industry will experience the fastest spending growth over the forecast period (7 percent CAGR), followed by the telecommunications and utilities industries (each with a 6.9 percent CAGR).

Popular posts from this blog

Artificial Intelligence Growth at an Inflection Point

Business technology investment no longer follows a predictable path to growth. The global venture capital (VC) investment in artificial intelligence (AI) was close to its peak in 2021 reaching $22.3 billion, according to the latest worldwide market study by ABI Research. This is just $400 million shy of the historical high of $22.7 billion recorded in 2019. Compared to the $15 billion recorded in 2020, the market made a remarkable recovery, with a 48.5 percent year-on-year growth. Will the future AI marketplace return to stable growth, or will it remain volatile? Artificial Intelligence Market Development "COVID-19 greatly accelerated the speed of digital transformation within the enterprise. Businesses are looking for solutions to work processes automation, customer care, due diligence, transcription and translation, and sales and marketing enablement tools," said Lian Jye Su, research director at ABI Research . At the same time, COVID-19 led to the Great Resignation of 2021

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th