Mobile tech spend to top US$185 billion in META region by 2019

Rebecca Gibson
Rebecca Gibson
By Rebecca Gibson on 23 March 2016
Mobile tech spend to top US$185 billion in META region by 2019

Annual spending on mobile technologies is expected to reach US$185 billion across the Middle East, Turkey and Africa (META) by 2019, according to IDC.

The new Mobility Spending Guide report indicated that this represents a 10.2% share of worldwide enterprise and consumer spending on mobile devices, software, and services, which is forecast to total US$1.8 trillion in 2019.

Together, Saudi Arabia (the single largest mobility market in META), Turkey, South Africa, and the United Arab Emirates accounted for approximately 38.7% of the entire mobility opportunity within the META region in 2015. However, the rest of the META region is expected to grow at faster compound annual growth rate (CAGR) of 5.1% over the 2014-2019 period.

Although companies in META lag behind Western Europe in the adoption of mobile technologies and business strategies, around 64% of companies plan to make ‘modest to major’ investments in business applications for mobile devices.

Services accounts for around two thirds of the total mobility opportunity in META, but software is the fastest growing of the technology categories and spending is expected to grow from US$164.3 million in 2015 to US$330 million in 2019.

Within the META region, the manufacturing, retail, and banking and financial services industries have been the earliest adopters of mobile technologies. Drivers of adoption include improved productivity, efficiency and customer services, while key challenges for adoption include ensuring security, data privacy and regulatory compliance.

Mobility spending (including hardware, software, and services) by META manufacturing organisations will grow from US$5.8 billion in 2015 to US$6.5 billion in 2019. Meanwhile, the retail, banking and financial services verticals will see increases from around US$3 billion to US$3.8 billion in 2019.

“The META mobility market is generally on the rise,” said Krishna Chinta, programme manager for telecommunications and media at IDC META. “However, due to the diversity of the region’s economic conditions, the adoption of mobility is more mature in markets such as the Gulf Cooperation Council (GCC) and Turkey, while countries in Africa remain largely under penetrated. While the low penetration rates across Africa naturally present considerable growth potential for mobility, the ongoing economic diversification measures underway in the GCC will also drive the growth of mobility across the META region.”

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