There are conflicting forecasts regarding the outlook for the global m-commerce market between 2015 and 2019. On the low end is a compound annual growth rate (CAGR) of 22%, while the high end the CAGR is predicted to be 32%.
Dublin-based Research and Markets says a new report it is marketing found analysts forecast the Global m-Commerce market to grow at a CAGR of 32.23% over the period 2014-2019.
Meanwhile, US-based Juniper Research says mobile phone and tablet users will make 195 billion mobile commerce transactions annually by 2019, up from 72 billion this year for a CAGR of 22.05%.
The highest net increase in transaction volumes will occur in the digital goods sector, fueled by a surge in micro-payments for in-app purchases, notably within arenas such as social gaming.
According to the Research and Markets report one of the emerging trends in the market is the increased awareness of mobile wallet. With the availability of Google wallet and PayPal and the introduction of Apple Pay and various other mobile wallets, there has been growing awareness of mobile wallet among consumers. This has helped in increasing the adoption rate of m-commerce services.
Also, this has led to the growth in mobile advertising as it is easier for brands to push their products and services to consumers with 24/7 access via handheld devices.
According to the report, growing disposable income, especially in developing countries such as China, is one of the major drivers of the market. With increased spending power, people are spending on apparels, electronics, and personal grooming products. With the increasing penetration of smartphones and tablets, consumers are adopting m-commerce for shopping, in-app purchases, and contactless payment.
Further, the report states that the slow adoption of mobile payment is one of the major concerns of the market as this will reduce m-commerce sales and eventually lead to the decline of the market. The adoption rate is particularly very low in developing countries, even though the market share of smartphones is high.
Juniper says storefronts that have deployed carrier billing solutions have already seen positive results across a range of indicators – higher conversion rates, higher average transaction values, higher transaction volumes. For the first time, they can monetize consumers who would otherwise have been excluded either because they lacked a credit card or because they were unwilling to enter card details online.
Global Mobile Transactions
2014: 72 billion
2015: 99 billion
2016: 125 billion
2017: 139 billion
2018: 165 billion
2019: 195 billion
Source: CardData; Juniper Research
The report also observed that many mobile ticketing deployments had seen rapid adoption rates immediately post-launch, suggesting a pent-up demand for such services. In the US, MBTA (Massachusetts Bay Transportation Authority)’s mTicket accounted for 15% of ticket sales within 9 months of launch, while New York Waterways has reached 25% in less than 2 years.
Other findings from the report include:
1. There is significant transactional migration from desktop to mobile as consumers increasingly “media-stack” (i.e. make purchases on their devices while watching TV).
2. Rather than focusing purely on payments, stakeholders need to emphasise the synergies between mobile payment and loyalty to persuade retailers to become engaged.
For more data on Mobile Commerce access CardData®. For information and commentary on Mobile Commerce visit the searchable CardFlash® Library of more than 58,000 articles published since 1995. RAM Research® forecasts on the Mobile Commerce are available exclusively through CardWeb.com.®