Worldwide mobility revenues are forecast to grow from $1.5 trillion in 2016 to more than $1.7 trillion in 2020, representing a compound annual growth rate (CAGR) of 2.2 percent, or roughly $40 billion in annual revenue gains, according to a report from IT research firm IDC.
The company's Semiannual Spending Guide provides subscribers with spending data on seven technologies across 19 industries, four company size bands and 53 countries.
The report notes that 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.
In particular, the banking industry is leading the way at the worldwide level, with mobility investments forecast to surpass $100 billion by 2020.Following banking, discrete manufacturing, professional services and retail are the next largest industries in terms of mobility investments.
Overall, the industry that will deliver the fastest revenue growth over the 2015-2020 forecast period is health care, boasting a 5.1 percent CAGR, followed by telecommunications, professional services and utilities.
The report predicts that mobility revenues would come from primarily consumer and enterprise purchases of hardware such as smartphones, portable PCs and tablets, as well as services such as connectivity.
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 research firm projected the strongest growth within the software category would come from investments in mobile application development platforms, mobile enterprise applications and mobile enterprise security.
From a regional perspective, the Asia/Pacific market, excluding Japan and led by strong investments in China, is expected to be the largest overall mobility market in terms of revenues, which are forecast to exceed $500 billion in 2020.
The United States represents the second largest region—and the region with the strongest growth forecast—at 4.7 percent CAGR. Yet, while the health care provider industry is still expected to be among the top 5 growth areas for mobility, spending is starting to temper.
The report also noted strong activity in the securities and investment services industry, where mobility projects are focused on enabling more productive and meaningful ways to engage with clients.
In addition, Latin America and the Middle East and Africa (MEA) also are expected to see revenue growth greater than the overall market.
From a company size perspective, large and very large businesses (those with more than 500 employees) are expected to see spending growth that surpasses the overall market.
These businesses will be investing in mobile solutions that enhance worker productivity and provide new capabilities to customers and partners.
IDC expects small offices with one to nine employees to continue delivering the largest share of global mobility revenues, as these businesses invest in mobile devices and apps as an affordable alternative to traditional IT solutions.