[January 18, 2017] |
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More than Six Billion Smartphones by 2020, IHS Markit Says
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 (News - Alert) 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 ative 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 (News - Alert) 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 (News - Alert) 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170118005781/en/
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