Worldwide Mobility Revenues Forecast to Reach $1.7 Trillion in 2020

Worldwide mobility revenues are forecast to grow from $1.5 trillion in 2016 to more than $1.7 trillion in 2020. This represents a compound annual growth rate (CAGR) of 2.2%, or roughly $40 billion in annual revenue gains, according to the latest study from IDC.

Mobility revenues will primarily come from consumer and enterprise purchases of hardware (e.g., smartphones, portable PCs, and tablets) and services (e.g., connectivity services). However, software revenues will experience double-digit growth over the forecast period as developers race to deliver applications that meet the mobility needs of both groups. The strongest growth within the software category will come from investments in mobile application development platforms, mobile enterprise applications, and mobile enterprise security.

"Despite the belief that the mobility market is maturing, there is still plenty of opportunity to drive enterprise spend especially at the software layer," said Carrie MacGillivray, vice president, Mobility & Internet of Things. "By 2020, the software market will increase spend by 15%, driven by mobile application development and mobile security capabilities.

While more than half of all mobility revenues are generated by consumer spending, a number of industries are making significant investments in mobility products and solutions. The banking industry is leading the way at the worldwide level with mobility investments forecast to surpass $100 billion by 2020. Discrete manufacturing, professional services, and retail are the next largest industries in terms of mobility investments. The industry that will deliver the fastest revenue growth over the 2015-2020 forecast period is healthcare (5.1% CAGR), followed by telecommunications, professional services, and utilities.