IDC: China Enterprise Mobility Service Markets Continue to Accelerate

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The FINANCIAL — With the popularization of mobile devices and the growing maturity of mobile technologies, mobility has become the strategic priority of IT development of many enterprises.

According to IDC’s latest “China Enterprise Mobility Service Market 2015 – 2019: Forecast and Analysis” the increasing importance of enterprise mobility will grow rapidly in the next several years. Both the specialized mobility services segment (focusing on consulting, integration and software development) and the mobility management services (MMS) segment (focusing on the operation and maintenance of devices, applications and networks) are undergoing a period of rapid development. This brings both great opportunity – as well as challenges – to the enterprise mobility services markets.

According to IDC’s data, China’s enterprise mobility service market reached USD 685 million in 2014, including USD 545 million for the specialized mobility service segment and USD 140 million for the mobility management service segment, representing a YoY growth of 25.4% and 33.7%, respectively, over 2013. IDC forecasts that China’s enterprise mobility service market will grow at the compound annual growth rate of 26.2% in the coming five years and reach USD 2.19 billion in 2019. IDC also finds that enterprises are attaching growing importance to the design and provision of integrated mobility solutions, rather than mere implementation of mobile technologies, and to security, operation and maintenance.

According to Nina Nie, Senior Market Analyst, Services Research, IDC China, “As the rise of mobile technologies brings a new round of growth, enterprises should consider how to leverage this technology in their everyday business activities and management practice. At present, mobility solutions have been widely adopted in the financial banking and insurance industry as well as the logistics industry. There are also opportunities in government, retail, healthcare and manufacturing sectors, promising a huge potential of growth.”

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The rampant growth of the enterprise mobility market has prompted large IT vendors and service providers such as IBM, SAP, Lenovo and Huawei to make major deployments in this field with a wide variety of mobility-related products and services. Meanwhile, the recent years have seen the rise of a good number of providers of industry-specific mobility software and services. The competition in the mobility market is intense in the market ecosystem. IDC has identified the following characteristics of the enterprise mobility service market in China:

Competition: In the specialized mobility service segment, providers of services related to system integration and CAD have established their presence in the entire front-end value chain of the mobility industry.  In the mobility management service (MMS) segment, multiple providers of operation and maintenance management services are attempting to gain leadership position in the industry, with all market participants being intent on expanding their presence on both the upstream and downstream of the value chain.

Demand: There is strong demand, particularly from large and medium-sized enterprises, which are relying on mobile technology to upgrade their existing IT infrastructures so that they can better serve their business growth. Enterprises expect providers of integrated mobility solutions to design and provide end-to-end, secure and efficient solutions.

Development trend: Overall, China’s mobility service market is still in embryo, with many industry applications requiring delivery of more business value. This calls for concerted efforts from both providers and their enterprise customers.  In terms of the delivery model, more clients will be willing to adopt the SaaS (software as a software) model, and the traditional SI (system integrator) and ISV (independent software vendor) models will also undergo transformation.

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