Smartphones and tablets now account for over 60 percent of all
smart connected consumer devices, up from 17 percent in 2008;
Messaging and communications apps to grow to 7.5 billion users by
2020
The global smartphone installed base will grow from four billion
in 2016 to more than six billion smartphones in use by 2020,
according to new analysis released today by IHS Markit (Nasdaq:
INFO), a world leader in critical information, analytics and
solutions. Messaging and communications apps such as Line and
Whatsapp will grow from five billion users in 2016 to 7.5 billion
by 2020.
“Mobile innovations, new business models and mobile technologies
are transforming every adjacent market as the mobile industry
diversifies from the maturing smartphone market,” said Ian Fogg,
director at IHS Technology. “Revenues for smartphones shipped in
2020 will total $355 billion.”
Globally, smartphones and tablets already account for more than
60 percent of smart connected consumer devices – up from around 17
percent in 2008. Smartphones and tablets make up more than 80
percent of connected devices in Africa and the Middle East.
“Smart mobile devices will rapidly become universally adopted
throughout the world, enabling innovative smart services, which
will transform emerging economies,” Fogg said. “Mobile devices and
services are now the hub for people’s entertainment and business
lives, as well as for communication. The smartphone has replaced
the PC as the most important smart connected device.”
In-app spending - $74 billion by 2020
Global consumer spending on mobile apps is set to reach $74
billion by 2020 up from $54 billion in 2016. Africa, the Middle
East and Latin America will be the fastest-growing regions for
mobile app spend. Africa and the Middle East will grow at an
average rate of 18 percent each year to 2020.
“Latin America will see an average growth rate of 23 percent
compared with the global 8 percent average annual rate,” said Jack
Kent, director at IHS Technology. “Africa, the Middle East and
Latin America will be the fastest- growing regions in the next four
years. There are many opportunities for new apps, mobile payments
and mobile money services. Asia, notably, will continue to play the
number one role in the global apps market – accounting for more
than 50 percent of consumers' spending. ”
Disrupting traditional payments and financial
services
There were more than 120 million active mobile money accounts in
emerging markets in 2016, according to the IHS Technology analysis.
The number of addressable smartphones for device based payment
services will increase from 2.7 billion in 2016 to more than five
billion by 2020.
“Mobile payments and commerce are central to mobile innovation
and will be critical for future growth,” Kent said. “Mobile money
services have been a vital tool for financial inclusion in emerging
markets, but elsewhere, mobile money services are looking to
complement or disrupt traditional payments and financial services
through the launch of app-only banking services, device-based
payments from services such as Apple Pay, Android Pay and Samsung
Pay, and payment integration via social media and messaging
apps.”
“In 2017, leading technology players will focus on the
integration of payments and commerce as part of their wider mobile
platforms and technology ecosystems,” Kent said. “This integration
across their range of devices, apps, content and services will be
crucial if they want to tap into the next waves of growth.”
Messaging apps offering free or low cost communications have
disrupted traditional telecom business models and their transition
into providing wider service, commerce and device platforms
threatens further disruption.
Over The Top messaging and communications apps such as Line and
WhatsApp boasted an aggregate audience of more than five billion
active user accounts at the end of 2016. This will grow to almost
7.5 billion by 2020. Africa and the Middle East will be the
fastest-growing region at an average rate of 10 percent to 2020,
ahead of the global average 8 percent rate.
About IHS Technology Mobile & Telecom
IHS Technology is the leading source of information, insight and
analytics in critical areas that shape the technology
ecosystem—from materials and components, to devices and equipment,
to end markets and consumers. Clients worldwide rely on the
independent insights of our 300+ analysts in sectors spanning IT,
telecom, media, industrial, automotive, electronics, solar and
more.
To contact us for more information about this report, click
here.
Mobile World Congress 2017 – Availability Alert
IHS Technology analysts Ian Fogg and Jack Kent will be on hand
throughout Mobile World Congress 2017 to provide you with
commentary on the new products and innovations and leading
independent insights and analysis on the global mobile industry. To
request a complimentary analyst briefing at MWC, please contact
us.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and solutions for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key business
and government customers, including 85 percent of the Fortune
Global 500 and the world’s leading financial institutions.
Headquartered in London, IHS Markit is committed to sustainable,
profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All
other company and product names may be trademarks of their
respective owners © 2017 IHS Markit Ltd. All rights reserved.
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IHS MarkitAmanda Russo, +44
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303-305-8021press@ihs.com
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