Singapore and Hong Kong, December 11, 2014 –International Data Corporation (IDC) expects the Asia Pacific mobility market to continue experiencing strong growth in 2015 as mobile takes center stage for business growth in both consumer and enterprise markets.
“The conditions couldn’t be better for strong mobility growth in the Asia/Pacific region in the coming year. What we’re seeing now is the perfect storm of strong consumer transition to mobility for every facet of their lives, as well enterprises treating mobility as a strategic initiative. The result of which will be an increased rate of growth for mobile proliferation for the region in 2015,” says Ian Song, Research Manager for Enterprise Mobility, IDC Asia/Pacific
“We’ve witnessed the consumer segment’s wholesale transition to mobility. China’s 2014 singles day saw over 40% of all transactions completed on the mobile platform, and we predicate that over 50% of consumer transactions will be conducted on mobile in 2015,” Song adds.
He finds the enterprise front just as exciting, as more organizations approach mobility strategically.
“This means moving away from pure-play Mobile Device Management (MDM) solutions and focusing on app and content management. Additionally, more companies will look at mobility as a growth driver in 2015.”
However, Song cautions that the optimism for Asia/Pacific mobility growth is not without its dark sides.
“The sheer diversity nature of this region will offer some unique challenges for vendors and organizations selling and adopting mobility. These challenges might be device, application or solution centric. Success in mobility in the region requires a very Asia/Pacific mindset.”
Drawing from the latest IDC research and internal brainstorming sessions amongst IDC’s regional and country analysts, the following are some trends IDC believes will have the biggest impact on the Asia Pacific excluding Japan (APEJ) mobility market.
Prediction 1: M-Commerce will thrive in APeJ, accounting for more than 50% of traffic across several markets
With smartphone adoption exploding across the region and strong signs of tablet growth, the addressable market has grown tremendously, leading to the emerging era of m-commerce. Asia’s diversity means individual, emerging markets like India and Indonesia are already experiencing higher proportions of Internet traffic over mobile devices than traditional PC browsers.
The convergence of these trends is manifesting in rapid growth of Internet traffic from mobile devices to e-commerce sites. In fact, what is striking is that in emerging markets like India and Indonesia, mobile Internet traffic will soon exceed 50% for several companies. IDC’s New Media Market model projects m-commerce to grow in the APeJ region from $16.6 billion in 2013 to nearly $67 billion in 2018.
Prediction 2: Asia will see the rise of numerous mobile wallet formats, all enabled by the humble QR code
Much of the excitement around mobile payments has to do with ApplePay, which centers on the contactless solution and involvement of major industry stakeholders (major retailers notwithstanding).
Contactless payment solutions are easier to use but face several challenges in Asia’s fragmented mobile environment, the biggest of which relates to the low penetration of Near Field Communications (NFC)-enabled smartphones and POS terminals.
IDC believes using the humble QR code is the simplest solution to closing the loop and driving fulfillment at the point of sale. The QR code will help enable the numerous mobile wallet categories that are emerging. The biggest of these are wallets offered by the likes of WeChat and Alipay in China, and paytm and Freecharge in India. Markets like India with EMV chip and PIN based systems are also seeing the rising development of in-app wallet options.
Prediction 3: Containers are the new MDM
As Asia/Pacific companies begin to shift their mobility focuses from device management to application and content management, the trend in 2015 in the enterprise mobility space will be the rise of containers and app wrapping for isolating enterprise data on personally owned devices.
According to a recent IDC Enterprise mobility survey, about 28% of the survey respondents are already utilizing Enterprise Mobility Management (EMM) solutions, whereas only 18% are still on Mobile Device Management (MDM). IDC believes that EMM solutions with container capabilities will exceed 50% attach rate in 2015, essentially becoming table stakes for any EMM vendor.
However, the challenge here is that containerization technology is fragmented with device and EMM vendors offering their own proprietary containers and app wrapping. IDC believes that containerized solutions, especially workspace based container solutions will see high attach rate in 2015 as Asia/Pacific based organizations continue to mature in terms of enterprise mobility adoption. One thing is clear, containers are the new MDM in 2015.
Prediction 4: MEAPs will struggle for growth with customers buying ready-made apps from large vendors and ISVs
Mobile Enterprise Applications Platform (MEAP) solutions, the darling of mobile applications development in the past few years has struggled to find traction in Asia/Pacific. In 2015, MEAP will continue to struggle in the Asia/Pacific region, as customers in the region increase purchase of off- the-shelf mobile business apps from existing vendors. The reason of MEAP’s struggle in the region is due to a multitude of factors: Buying vs building apps; and developer and platform preference.
Prediction 5: Wearables enter the enterprise
Basic wearables, which include devices fitness bands and clips that cannot load 3rd party software, will find a lucrative new market in enterprise customers. Employee tracking, integration into corporate wellness programs, and the creation of new business models that leverage basic wearables, especially fitness bands, to enhance the customer experience will see significant adoption in 2015.
About IDC’s Predictions
IDC’s annual Predictions in APEJ draws upon the latest IDC research and a worldwide brainstorming exercise among IDC’s 1000+ analysts. This was followed by an extensive regional review to weigh in on key industry events, user trends, vendor strategies and economic measures that promises to uniquely define the technology trends that would impact and drive the market in APEJ for 2015. Across the globe, following the release of IDC’s global top ten predictions, IDC’s geographic, technology and industry teams will be releasing their own specific predictions in the coming months.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.