mobile industry summary

by Syniverse

Mobile Subscribers and Traffic Continue to Grow

The global mobile ecosystem continues to grow rapidly in a number of ways. Examples include:
• The number of smartphone users is expected to more than double by 2017, from 1.1 billion in 2012 to 2.5 billion in 2017, according to eMarketer.
• 50 billion devices are expected to be connected to the Internet by 2020, up from a projected 25 billion in 2015, according to Cisco.
• A projected thirteen-fold increase in worldwide mobile data traffic from 2012 to 2017, according to Cisco.
• An expected CAGR ( Compound annual growth rate) of 77%, 76% and 67% in mobile data traffic in the Middle East and Africa, Asia Pacific and Latin America regions, respectively, from 2012 to 2017, according to Cisco.
• An expected 18% and 15% increase in mobile phone user penetration in India and China, respectively, from 2012 to 2017, according to eMarketer.

Mobile Becoming the Preferred Medium for Communication, Entertainment and Customer Relationship Management

Concurrent with growth in subscribers, traffic and usage, mobile is becoming the preferred medium for customers globally. For example:
• 51% of email is now accessed on a mobile device rather than a desktop and 30% of consumers now read their email exclusively on mobile devices.
• 48% of Facebook’s total revenue for the fourth quarter 2013 was derived from mobile activity, with 73% of users accessing their Facebook account via mobile devices on a given day in December 2013, up 49% from December 2012.
• 38% of Netflix subscribers viewed content on mobile phones and iPads in 2013, up from 16% in 2012, according to Nielsen.
• More than 80% of mobile device owners in the U.S. used their smartphone or tablets to help them shop during the 2013 holiday season, representing more than 86 million consumers (28% of the total U.S. population).
• 90% of executives surveyed look to maintain or increase their investments in mobile technology over the next 12 - 18 months as organizations worldwide recognize the need for a mobile strategy in order to effectively compete in the future, according to an IBM study.
• Approximately 90% of enterprises plan to support corporate applications on personal mobile devices by the end of 2014, according to Gartner.
• The trend of turning everyday objects into “data-spewing machines” will support the addition of an estimated $1.9 trillion to the global economy over the next six years, according to Gartner.

Increasing Mobile Complexity
The challenges associated with providing a seamless and ubiquitous end-user experience are compounded by the introduction of new and diverse technologies and services and the entrance of new and diverse market participants. Examples include:
• Continued deployment of evolving network technologies, including LTE and Wi-Fi.
• The need to bridge mobile traffic between multiple generations of networks and technologies, such as 4G, 3G and 2G networks.
• Proliferation, increasing sophistication and diversity of mobile devices and their underlying operating systems and technologies.
• Emergence of OTTs and enterprises and their rapid introduction of innovative applications and services to the mobile ecosystem.
• Evolving regulatory environment in jurisdictions around the world.