Mobility spending to grow 2.6% to $1.57 trillion in 2017: IDC

tablet user from VerizonMobility spending is expected to grow 2.6 percent to $1.57 trillion in 2017, IDC forecasts.

Spending on mobile hardware, software, and services is expected to reach $1.67 trillion in 2020 – achieving a compound annual growth rate (CAGR) of 2.1 percent over the 2015-2020 forecast period.

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Connectivity services will be dominate mobility spending in 2017 followed by consumer and enterprise purchases of phones, tablets, and portable PCs.

Connectivity and hardware will deliver more than 95 percent of all mobility revenues this year with roughly two thirds coming from the consumer market.

Most of the remaining revenues will come from enterprise purchases of mobility services, applications, application development platforms, and security.

Though hardware and services dominate mobility spending overall, applications and application development platforms represent the fastest growing areas of mobility with five-year CAGRs of 17.3 percent and 20.3 percent respectively.

“While devices and apps transform how workers do their jobs, mobile app platforms and services create entire new business models and customer interaction opportunities,” said Phil Hochmuth, program director, Enterprise Mobility at IDC.

IDC suggest that enterprise IT buyers must know the relationships, dependencies, and requirements of all aspects of mobile computing, from hardware and devices, to management and development platforms, security, and services

Banking, discrete manufacturing, and professional services will be the three commercial industries making the largest mobility investments in 2017 ($166.3 billion combined) and throughout the forecast period.

Banking, discrete manufacturing, and professional services will make significant investments in application development platforms, applications, and the enterprise mobility services that support the planning, development, and final consumption of services through a mobile device.

The telecommunications industry will deliver the fastest spending growth of 4.2 percent CAGR over the 2015-2020 forecast period followed by process manufacturing, healthcare providers, and construction.

Consumer mobility spending is forecast to deliver a CAGR of 2.5 percent.

Asia Pacific (excluding Japan), led by strong investments in China, will be the largest overall mobility market in terms of revenues, which are forecast to exceed $500 billion in 2018.

The United States represents the second largest region, followed by Western Europe. Latin American is forecast to deliver the fastest revenue growth (4.1 percent CAGR) while Asia/Pacific (excluding Japan) and the Middle East and Africa (MEA) will also see revenue growth greater than the overall market.

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