As more CIOs and CTOs adopt mobile-first strategies, mobility solutions revenue from the Asia-Pacific region excluding Japan (APeJ), will record 5.7 percent year-over-year growth, reaching $541.9 billion in 2018 and $615.4 billion by 2022.
Spending on mobility-related hardware, software, and services is estimated to achieve a five-year compound annual growth rate (CAGR) of 3.7 percent during the forecast period, according to the latest market study by International Data Corporation (IDC).
Mobility solutions market development
“The region is leading the charge in becoming a mobile-first society. Favorable government policies for mobile payments, healthcare, connectivity and citizen focus services are propelling overall investments in mobile technologies and ecosystem development,” said Avinav Trigunait, research director at IDC.
While for many years the mobility discussions focused on tactical issues such as access to resources and device policies, now organizations are focusing on mobilizing business processes and workflows to drive mobile-first experiences for both employees and customers.
Enterprise mobility today lays the foundation for the future of work, and enterprises now consider mobility as a strategic value driver. These trends along with emerging technologies such as Augmented Reality or Virtual Reality, Artificial Intelligence and 5G wireless are expected to accelerate investments in mobility technologies over the next few years.
Hardware purchases leads software and services with $270.9 billion in 2018 and this trend is likely to continue with a five-year CAGR of 5.2 percent over the forecast period (2017-22). Services and software followed with 49.7 percent and 0.3 percent market share respectively in 2018.
Mobility services, which represents the second largest technology spend, is dominated by mobile connectivity services at over 97 percent of services spending. Overall mobility services spending is expected to reach $288.9 Billion by 2022 and will see a notable rise in spending with a five-year (2017-22) CAGR of 16.2 percent.
Mobility software technology spending will reach $1.7 Billion in 2018 but it is estimated to witness the strongest spending growth out of the three at 25.7 percent CAGR over the forecast period. Mobile enterprise applications will be the largest segment of software followed by mobile enterprise security, Enterprise Mobility Management (EMM) and Mobile Application Development Platform.
Outlook for mobility solution segmentation
The consumer segment will account for more than 84 percent of total mobility spending throughout the forecast period. In the commercial segment, the industries that will drive the largest spending on mobility solutions in 2018 are banking, education and discrete manufacturing.
While most of the spending in the commercial segment will be driven by connectivity and hardware, enterprise mobility services will also be a significant spending category as these industries implement and execute their mobile strategies.
However, mobility spending in process manufacturing and telecommunications industry is expected to deliver the highest five-year CAGR of 8.7 percent and 8.2 percent during (2017-22) respectively.