Global spending on mobility solutions will reach USD 1.8 trillion in 2022, according to a new update to the Worldwide Semiannual Mobility Spending Guide from International Data Corporation (IDC). While annual growth will vary somewhat over the 2017-2022 forecast period, IDC expects the five-year compound annual growth rate (CAGR) will be 2.8%. Mobility spending in 2018 is forecast to be USD 1.63 trillion.
Consumers will provide more than 70% of worldwide mobility spending throughout the forecast with slightly more than half of this amount going toward mobile connectivity services and most of the remainder going toward devices, mainly smartphones. Growth in the consumer sector will be variable but positive with a five-year CAGR of 2.2%.
Professional services industry is forecast to be the worldwide industry leader for mobility spending in 2018 at USD 44.9 billion, followed closely by the banking industry at USD 44.5 billion. Discrete manufacturing, retail, and education will round out the top 5 industries this year. Like the consumer sector, more than half of industry mobility spending (and nearly three quarters for the professional services industry) will go to connectivity services and enterprise mobility services. While mobile devices will be the second largest area of spending, most industries will also make considerable investments in mobile applications and mobile application development platforms. The industries that will see the fastest growth in mobility spending over the forecast period are discrete manufacturing and utilities (each with a 5.9% CAGR), telecommunications (5.8% CAGR), and process manufacturing (5.7% CAGR). Healthcare, with a 5.0% CAGR, is forecast to move ahead of education to become the fifth largest industry by 2022.
From a technology perspective, mobility services will be the largest area of spending throughout the 2017-2022 forecast, surpassing USD 1 trillion in 2021. Hardware will be the second largest technology category with spending forecast to reach USD 738 billion in 2022. Despite being the smallest technology category, software will see strong spending growth (12.9% CAGR) over the five-year forecast. Mobile enterprise applications will be the largest category of mobile software spending, growing to nearly USD 8.0 billion in 2022. Businesses will also increase their development efforts with mobile application development platforms experiencing a five-year CAGR of 15.1%, making it the fastest growing technology category overall. However, all four software categories, including mobile enterprise security and enterprise mobility management, are forecast to deliver double-digit five-year CAGRs.
The United States and China will be the two largest geographic markets for mobility spending throughout the forecast with each seeing more than USD 300 billion in mobility spending this year. Japan will be the third largest country for mobility spending in 2018 at nearly USD 107 billion, followed by India and Brazil at USD 51 billion and USD 44 billion, respectively. India will see the fastest growth in mobility spending with a five-year CAGR of 7.9%. Venezuela and the Philippines will also have CAGRs greater than 7% while three countries – Israel, Taiwan, and Saudi Arabia – are forecast to experience a decline in mobility spending over the next five years.
From a company size perspective, large and very large businesses (500-999 employees and 1000+ employees, respectively) combined will account for nearly USD 197 billion in mobility spending in 2018, growing to more than USD 245 billion in 2022. The small business sector (10-99 employees) will grow to more than USD 100 billion in 2022 while medium size businesses (100-499 employees) will surpass USD 94 billion in 2022. The small office market (1-9 employees) will spend more than USD 70 billion on mobility solutions in 2022.