mCommerce the driver
Mobile’s so big, it’s hard to take in all at once. When we broke down the data by sector (into almost 30 individual sectors), what jumped out was the power of mCommerce to drive the market. Growing from over $100B to half a trillion dollars globally, it commands the lion’s share.
While dominated by mCommerce, the other drivers of that $700B are $74B consumer apps, $53B enterprise mobility, $42B mobile web adspend (Digi-Capital includes in-app advertising in consumer apps revenue) and $11B wearables.
As with all things mobile, this looks very much like the Asian century. The largest driver of mCommerce growth will be in Asia, with the major markets there consuming almost half of global mCommerce at $230B. America and Europe are still massive growth markets for mCommerce, but players in the space ignore Asia at their peril.
App as a Service
Digi-Capital forecasts that consumer apps will deliver over $70B revenue, but we see the balance of power shifting across sectors beyond the currently dominant mobile games market.
Mobile games have had an amazing ride, driving ¾ of all mobile apps revenue last year despite having only 40% of downloads. We still see a lot of growth coming from mobile games, but expect other sectors to take over half the market by 2017. Where in-app purchases work brilliantly for games, App as a Service business models are starting to deliver new revenue streams for other sectors.
If you’re looking for Digi-Capital’s quantitative investment research (revenue forecasts, public company/M&A valuation comparables, public market indices, operational metrics, M&A transactions, investment transactions), you can find the Review and individual sectors at www.digi-capital.com/reports.
This is part 1 of a 5 part series:
- Mobile internet to grow over 300% to $700B in 4 years (revenue forecasts by sector)
- Mobile internet record deals >$47B M&A and $14B invested (M&A and investment analysis)
- Mobile internet Investment Quadrant: hidden opportunities (investment and consolidation potential by sector)
- The 5 drivers of $700B mobile internet (business models and metrics)
- Over 20 “billion dollar” mobile internet companies (competitive advantages and risks)