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Smartphone shipments estimated to reach 1.7 billion in 2017, led by Android

Thursday, May 3rd, 2012

Smartphone shipments to reach 1.7 billion in 2017

Market research firm Ovum estimates that smartphone shipments will continue to grow and reach 1.7 billion units in 2017. The company cites increased demand from emerging markets, alongside the growth of Android, which will fuel ballooning handset shipments. “Android will dominate the smartphone market over the next five years,” said Adam Leach, principal analyst at Ovum. “While Apple has defined the smartphone market since it introduced the iPhone in 2007, we’re now seeing a sharp rise in the shipment volumes of Android, signaling its appeal to leading handset manufacturers.” Android-powered handsets accounted for 44% of the smartphone market in 2011, a significant increase from 17% in 2010. The firm estimates Android’s share will reach 48% in 2017 and Apple’s iOS will account for 27% of the smartphone market, an increase from 23% in 2011. “Although it will remain behind Android in terms of shipment volumes, Apple will continue to be a key player and innovator in the smartphone market over the forecast period,” said Leach. “We expect Microsoft, despite its slow start, to have established Windows Phone as a relevant smartphone platform by 2017.” Ovum’s press release follows below.

Ovum expects smartphone shipments to reach 1.7 billion in 2017 and Android to dominate as OS

London, 3 May 2012. Smartphones will outperform the overall market for mobile phones, growing at a compound annual growth rate (CAGR) of 24.9% for the period 2011–17 to reach 1.7 billion units, according to Ovum. Predictions show Android as the dominant operating system over the next five years as handset vendors rush to make it their primary smartphone platform.

In its latest forecast*, the leading telecoms analyst house reveals global annual mobile phone shipments will grow at a CAGR of 6.3% between 2011 and 2017, driven primarily by demand from emerging markets where connection growth will continue to fuel handset shipments. New shipments in developed markets, such as North America and Western Europe, will be almost entirely made up of smartphones, while feature phones will continue to play a small role in emerging markets in 2017.

“Android will dominate the smartphone market over the next five years,” said Adam Leach, principal analyst at Ovum. “While Apple has defined the smartphone market since it introduced the iPhone in 2007, we’re now seeing a sharp rise in the shipment volumes of Android, signaling its appeal to leading handset manufacturers.”

Smartphones based on Android accounted for 44% of the smartphone market in 2011, significantly up from 17% in 2010. However, its share will reach 48% in 2017, as Android-based smartphones are expected to grow at a CAGR of 26.8% over the forecast period. Apple’s iOS will be the second most widely deployed software platform in 2017, accounting for 27% of the smartphone market, a slight increase on the 23% share of the market it reported in 2011. Sitting some way behind the Android/iOS duopoly will be the remaining smartphone players.

“Although it will remain behind Android in terms of shipment volumes, Apple will continue to be a key player and innovator in the smartphone market over the forecast period,” says Leach. “We expect Microsoft, despite its slow start, to have established Windows Phone as a relevant smartphone platform by 2017.”

The Windows Phone platform, with the assistance of Nokia, will account for 13% of the smartphone market in 2017. Despite losing significant market share since its high point in 2009, RIM’s BlackBerry platform will still represent 10% of the market in 2017.

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Apple iPad to dominate tablet market through 2016

Tuesday, April 24th, 2012

According to a recent report from Forrester Research, Apple’s iPad tablet PC will continue to lead the tablet market through 2016 despite increased competition. The Cupertino-based company’s iPad is expected to account for 53% of the global tablet market in 2016, at which time emerging markets may account for nearly 40% of all tablet sales, The Financial Post reported on Monday. Over the next five years, the global tablet market is estimated to increase to 375 million devices, up from 56 million sold in 2011, for a total global base of more than 760 million tablet owners. The report identifies Amazon’s Kindle Fire as the only viable alternative to the iPad, while devices from Google and Research In Motion are said to be failing to keep pace with Apple’s tablet. Forrester also indicated that by 2016, about one-third of all tablet sales will be for businesses, accounting for roughly 122 million units.

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Nearly 1 billion smart connected devices shipped in 2011

Thursday, March 29th, 2012

The International Data Corporation on Wednesday announced that shipments of smart connected devices —including PCs, tablets and smartphones — reached 916 million units and surpassed $489 billion in revenue in 2011. “Whether it’s consumers looking for a phone that can tap into several robust ‘app’ ecosystems, businesses looking at deploying tablet devices into their environments, or educational institutions working to update their school’s computer labs, smart, connected, compute-capable devices are playing an increasingly important role in nearly every individual’s life,” said Bob O’Donnell, vice president of Clients and Displays at IDC. The firm estimates that worldwide shipments of smart connected devices will top 1.1 billion in 2012 and double to 1.84 billion by 2016. IDC’s numbers represent a compound annual growth rate of 15.4% over the next five years. The firm also predicts that the number of Android-powered devices running on ARM CPUs will grow from 29.4% in 2011 to a market-leading 31.1% share in 2016. Apple’s iOS-based devices, on the other hand, are estimated to grow from 14.6% share in 2011 to 17.3% in 2016. IDC’s press release can be found after the break.

Nearly 1 Billion Smart Connected Devices Shipped in 2011 with Shipments Expected to Double by 2016, According to IDC

FRAMINGHAM, Mass.–(BUSINESS WIRE)–The universe of smart connected devices, including PCs, media tablets, and smartphones, saw shipments of more than 916 million units and revenues surpassing $489 billion dollars in 2011, according to the International Data Corporation (IDC). These numbers reflect the combined total from IDC’s Worldwide Quarterly PC Tracker, Mobile Phone Tracker, and Media Tablet Tracker.

“Whether it’s consumers looking for a phone that can tap into several robust ‘app’ ecosystems, businesses looking at deploying tablet devices into their environments, or educational institutions working to update their school’s computer labs, smart, connected, compute-capable devices are playing an increasingly important role in nearly every individual’s life,” said Bob O’Donnell, vice president, Clients and Displays at IDC.

Looking ahead, unit shipments for smart connected devices should top 1.1 billion worldwide in 2012. By 2016, IDC predicts shipments will reach 1.84 billion units, more than double the 2011 figure, as consumers and business of all shapes and sizes around the world are showing a nearly insatiable appetite for smart connected devices. This works out to a compound annual growth rate (CAGR) of 15.4% for the five-year forecast period.

A graphic illustrating the size and composition of the worldwide smart connected device market for the 2010-2016 forecast period is available at IDC.com. Instructions to embed the graphic into online news articles and social media can be found by viewing this press release on IDC.com.

In terms of platforms, IDC expects a relatively dramatic shift between 2011 and 2016, with the once-dominant Windows on x86 platform, consisting of PCs running the Windows operating system on any x86-compatible CPU, slipping from a leading 35.9% share in 2011 down to 25.1% in 2016. The number of Android-based devices running on ARM CPUs, on the other hand, will grow modestly from 29.4% share in 2011 to a market-leading 31.1% share in 2016. Meanwhile, iOS-based devices will grow from 14.6% share in 2011 to 17.3% in 2016.

“Android’s growth is tied directly to the propagation of lower-priced devices,” said Tom Mainelli, research director, Mobile Connected Devices. “So, while we expect dozens of hardware vendors to own some share in the Android market, many will find profitability difficult to sustain. Similarly, we expect a large percentage of application developers to continue to focus their efforts on iOS, despite the platform’s smaller overall market share, because iOS end users have proven more willing to pay for high-quality apps.”

Research conducted by IDC suggests that many individuals own and regularly use multiple smart connected devices. “We are in the multi-device age,” continued O’Donnell, “and we believe the number of people who use multiple devices will only continue to increase. The trick, moving forward, will be to integrate all these devices into a unified whole through use of personal cloud-type applications and services. That’s the real challenge of what we have often called the ‘PC Plus’ era.”

“Smartphone growth will be driven by Asia/Pacific countries, especially China, where mobile operators are subsidizing the purchase of 3G smartphones, thus increasing the total addressable market. In many if not all instances, the smartphone will be the primary connection to the Internet,” said Will Stofega, program director, Mobile Phone Technologies and Trends. “In countries where devices are not subsidized by the mobile operators, competitive and component-based pricing will help drive volume.”

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Low cost tablets to control 60% of the market by 2016

Friday, March 23rd, 2012

Since Apple introduced its iPad tablet more than two years ago, the market the market it revived has been approached by nearly every other PC and smartphone vendor. By market research firm ABI Research’s count, there are currently more than 220 tablet models available worldwide. While Apple’s iPad remains the market leader, ABI predicts that by 2016, 60% of the market will be occupied by sub-$400 tablets like the Kindle Fire and Google’s rumored Nexus Tab. “The majority of new entrant media tablet models have been in the sub-$400 segment that focuses on growth markets like India and China,” said Jeff Orr, group director of consumer research. “The strong wave of growth in this segment over the next few years is expected to be driven by the adoption in emerging markets.” ABI also predicts that eReaders will continue to see accelerated growth, with total shipments projected to grow more than 20% in 2012. ABI Research’s press release follows below.

Apple Will Maintain Tablet Market Dominance in the Short Term, Low Cost Segment to Take 60% by 2016, Says ABI Research

SINGAPORE – March 21, 2012

​The media tablet segment has evolved as a dynamic landscape since its inception about three years ago, evidenced by the fact that there are currently more than 220 models in the market. While the Apple iPad remains the market leader in the media tablet segment, the buzz created by iPad has paved the way for more and more vendors to join the race, especially in the lower price segment. The market for sub-$400 media tablets is expected to see significant growth over the next five years, occupying more than 60% of the market share by 2016, while the market for the over $400 segment is expected to shrink.

According to Jeff Orr, group director, consumer research, “The majority of new entrant media tablet models have been in the sub-$400 segment that focuses on growth markets like India and China. The strong wave of growth in this segment over the next few years is expected to be driven by the adoption in emerging markets.”

Wide aspect display media tablets (nine inches and above) are still favored in the market and accounted for more than 75% of the total media tablet volume in 2011, which is mostly attributed to the Apple iPad 2. However, the trend in coming years is expected to be inclined toward display sizes between seven and nine inches as smaller-sized media tablets provide better portability options for end-users.

No longer considered the unprivileged elder cousin of media tablets, eReaders are also on an accelerated growth track, with more than 30 models currently available by major vendors. 2011 has seen a healthy 33% growth in the eReader market and the market for total shipments is projected to grow over 20% in 2012. “Availability of competing models increases options for consumers and will help to boost eReader adoption,” says research analyst Aishwarya Singh. “However, the slower pace of digitization of local content will be the key market inhibitor for adoption of eBook Readers, as well as media tablets, in the emerging markets.”

ABI Research’s new market data, “Mobile Internet Device Product Tracker,” tracks media tablet, netbook, UMPC, MID, and eReader releases from all major vendors.

It is part of firm’s Tablets, Netbooks & Mobile CE Research Service.

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Cisco: mobile connections to hit 10 billion by 2016

Tuesday, February 14th, 2012

Global mobile data traffic is expected to increase 18-fold over the next five years to 10.8 exabytes per month according to Cisco’s Visual Networking Index Forecast (VNI). Cloud traffic is expected to account for 71%, or 7.6 exabytes per month, of total mobile data traffic by 2016. In 2011, cloud traffic accounted for only 45% of mobile data traffic, or 269 petabytes per month. It is projected that there will be more than 10 billion mobile Internet-connected devices in 2016, exceeding the world’s projected population of 7.3 billion individuals. The surge in smartphone adoption — which is expected to hit 8 billion in 2016 — is the core driver behing the massive mobile data growth expected in the coming years. From 2011 to 2016, Cisco estimates that global mobile data traffic will outgrow global fixed data traffic by three times. Read on for Cisco’s press release.

Cisco Visual Networking Index Forecast Projects 18-Fold Growth in Global Mobile Internet Data Traffic From 2011 to 2016

Mobile Cloud Traffic to Account for 71 Percent, or 7.6 Exabytes per Month, of Total Mobile Data Traffic by 2016, Compared to 45 Percent, or 269 Petabytes per Month, in 2011

SAN JOSE, Calif. and LONDON – Feb. 14, 2012 – According to the Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast for 2011 to 2016, worldwide mobile data traffic will increase 18-fold over the next five years, reaching 10.8 exabytes per month — or an annual run rate of 130 exabytes — by 2016.

The expected sharp increase in mobile traffic is due, in part, to a projected surge in the number of mobile Internet-connected devices, which will exceed the number of people on earth (2016 world population estimate of 7.3 billion; source: United Nations). During 2011−2016 Cisco anticipates that global mobile data traffic will outgrow global fixed data traffic by three times.
The forecast predicts an annual run rate of 130 exabytes of mobile data traffic, equivalent to:

- 33 billion DVDs.
- 4.3 quadrillion MP3 files (music/audio).
- 813 quadrillion short message service (SMS) text messages.

An exabyte is a unit of information or computer storage equal to 1 quintillion bytes.

This mobile data traffic increase represents a compound annual growth rate (CAGR) of 78 percent spanning the forecast period. The incremental amount of traffic being added to the mobile Internet between 2015 and 2016 alone is approximately three times the estimated size of the entire mobile Internet in 2012. The following trends are driving these significant increases:

1. More Streamed Content: With the consumer expectations increasingly requiring on-demand or streamed content versus simply downloaded content, mobile cloud traffic will increase, growing 28-fold from 2011 to 2016, a CAGR of 95 percent.
2. More Mobile Connections: There will be more than 10 billion mobile Internet-connected devices in 2016, including machine-to-machine (M2M) modules — exceeding the world‟s projected population at that time of 7.3 billion. (One M2M application is the use of wireless networks to update digital billboards. This allows advertisers to display different messages based on time of day or day-of-week and allows quick global changes for messages, such as pricing changes for gasoline).
3. Enhanced Computing of Devices: Mobile devices are becoming more powerful and thus
able to consume and generate more data traffic. Tablets are a prime example of this trend generating traffic levels that will grow 62-fold from 2011 to 2016 — the highest growth rate of any device category tracked in the forecast. The amount of mobile data traffic generated by tablets in 2016 (1 exabyte per month) will be four times the total amount of monthly global mobile data traffic in 2010 (237 petabytes per month).
4. Faster Mobile Speeds: Mobile network connection speed is a key enabler for mobile data traffic growth. More speed means more consumption, and Cisco projects mobile speeds (including 2G, 3G and 4G networks) to increase nine-fold from 2011 to 2016.
5. More Mobile Video: Mobile users want the best experiences they can have and that generally means mobile video, which will comprise 71 percent of all mobile data traffic by 2016.
The Cisco study also projects that 71 percent of all smartphones and tablets (1.6 billion) could be capable of connecting to an Internet Protocol version 6 (IPv6) mobile network by 2016. From a broader perspective, 39 percent of all global mobile devices (more than 4 billion), could be IPv6-capable by 2016.

Impact of Mobile Devices/Connections
- The increasing number of wireless devices and nodes accessing mobile networks worldwide is the primary contributor to traffic growth. By 2016, there will be more than 8 billion handheld or personal mobile-ready devices and nearly 2 billion machine-to-machine connections, such as GPS systems in cars, asset tracking systems in shipping and manufacturing sectors and medical applications for making patient records more readily available.
- Smartphones, laptops and other portable devices will drive about 90 percent of global mobile data traffic by 2016.
- M2M traffic will represent 5 percent of 2016 global mobile data traffic while residential broadband mobile gateways will account for the remaining 5 percent of global mobile data traffic.

Impact of Traffic Offload from Mobile Networks to Fixed Networks
- To address the rise in demand for the mobile Internet, service providers are increasingly looking to offload traffic to fixed/Wi-Fi networks.
- In 2011, 11 percent, or 72 petabytes, per month of total mobile data traffic was offloaded. By 2016, 22 percent, or 3.1 exabytes, per month of total mobile data traffic will be offloaded.
- Without offloading, the 2011-2016 global mobile data traffic CAGR would be 84 percent
instead of 78 percent.
- Should all aspects of mobility be taken into consideration, such as cellular traffic, traffic
offloaded from cellular networks and fixed/Wi-Fi traffic generated from portable devices, the total amount of mobility traffic would be more than four times the Cisco Mobile VNI forecast‟s 2016 cellular traffic level.
1. In 2011, the sum of cellular traffic; cellular offload traffic; and fixed/Wi-Fi traffic from portable devices totaled 11.5 exabytes per month:
- Cellular is 5.2 percent or 597 petabytes per month
- Cellular Offload is 0.6 percent or 72 petabytes per month
- Fixed/Wi-Fi is 94.2 percent or 10.9 exabytes per month
2. In 2011, fixed/Wi-Fi traffic was more than 18 times greater than cellular traffic.
3. In 2015, the sum of cellular traffic; cellular offload traffic; and fixed/Wi-Fi traffic
from portable devices totaled 44.1 exabytes per month:
- Cellular is 16 percent or 6.9 exabytes per month
- Cellular offload is four percent or 2.0 exabytes per month
- Fixed/Wi-Fi is 80 percent or 35.2 exabytes per month o In 2015, Fixed/Wi-Fi traffic will be more than five times greater than cellular traffic.

Key Regional Growth Projections
According to the updated forecast by Cisco, the following regions are experiencing the greatest growth.
- Middle East and Africa will have the highest regional mobile data traffic growth rate with a
CAGR of 104 percent, or 36-fold growth.
- Asia-Pacific will have an 84 percent CAGR, or 21-fold growth.
- Central and Eastern Europe will have an 83 percent CAGR, or 21-fold growth.
- Latin America will have a 79 percent CAGR, or 18-fold growth.
- North America will have a 75 percent CAGR, or 17-fold growth.
- Western Europe will have a 68 percent CAGR, or 14-fold growth.

Impact of Faster Global Mobile Network Connection Speeds
The average mobile connection speed doubled last year and is expected to increase nine-fold by 2016. Mobile connection speeds are a key factor in supporting and accommodating mobile data traffic growth.

Cisco Mobile VNI Forecast Methodology
The Cisco mobile VNI study relies upon independent analyst forecasts and real-world mobile data usage studies. Upon this foundation are layered Cisco‟s own estimates for mobile application adoption, minutes of use and transmission speeds. Key enablers such as mobile broadband speed and device computing power are also factored into Cisco VNI projections and findings. A detailed methodology description is included in the complete report (see link below).

The results of the current forecast represent increased amounts of traffic for the years 2011 to 2015, reflecting faster-than-expected growth from the previous Cisco VNI mobile forecast released in February 2011. In last year‟s study, 2011 mobile Internet traffic was forecast to grow at 131 percent. This year, actual mobile Internet growth 2011 was estimated to be 133 percent.

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China promises to put more humans in space, less trash

Sunday, January 1st, 2012

China’s recent Beidu GPS launches were mere firecrackers compared to its space ambitions for the next five years. These have been laid out in a 17-page government document, which fortunately reduces down to just a few key points once you filter out the abstract bluster. Top of the list is a pledge to prepare for the construction of more “space stations” — plural — to complement the Tiangong module and allow for “medium term” human habitation. Officials and scientists will also find time to plan for a “human lunar landing” as well as surveying the moon with rovers. Lastly, it seems that China wants to fix its nasty reputation as a space litterer, by moving “aging GEO satellites out of orbit” and “fully deactivating” used Long March rockets to reduce the risk of them exploding and scattering debris in the busiest lanes. Regardless of how these lofty goals pan out, the juxtaposition with America’s own dwindling dream is obvious.

China promises to put more humans in space, less trash originally appeared on Engadget on Mon, 02 Jan 2012 02:34:00 EDT. Please see our terms for use of feeds.

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LTE pricing may drop as much as 60% by 2016

Wednesday, December 21st, 2011

The monthly price we pay for 4G LTE data could drop drastically over the next five years. Currently, 4G LTE networks are blazing fast but there’s no doubt that the technology comes at a price. 4G LTE handsets sold directly by wireless carriers typically cost more than their 3G counterparts, and tiered 4G data prices are still a bit too costly for heavy data users looking to ditch their cable companies. Verizon Wireless, for example, currently charges $80 for 20GB of data per month while Time Warner Cable sells digital TV service and a 10Mbps unlimited monthly data connection for $89 per month (in New York City). But 4G LTE data prices could fall as much as 60% by 2016, or to about 20 Euro ($26) on average for monthly service according to Tariff Consultancy (TCL). Pricing is expected to decline as more wireless operators begin to offer 4G LTE services and the amount of subscribers on those networks increases. Verizon Wireless and AT&T have each deployed 4G LTE networks in the United States this past year, and Sprint will be the third major wireless carrier to deploy its LTE network next year. The TCL report also suggests that there will be more than 250 million 4G LTE subscribers by 2016.

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Revenue from mobile hotspots to balloon 500% over next five years

Thursday, December 8th, 2011

Despite the proliferation of smartphones that include built-in mobile hotspot capabilities, the market for dedicated mobile hotspot routers like Novatel Wireless’s Mifi line of products is seen growing significantly over the next five years. According to a new report from market research and analysis firm ABI Research, 7.1 million dedicated mobile hotspot devices will ship in 2011 carrying an estimated end-user revenue value of $1 billion. In 2016, ABI expects annual shipments to reach 60 million units, representing more than $5 billion in end-user revenue value. Read on for more.

“The first products to reach the market in 2009 generally overshot the mass consumer population,” ABI Research analyst Jeff Orr said in a statement. “Products were very complex to set up and catered to an IT-managed remote workgroup environment, such as a construction site or field emergency response team.” Orr says that significant headway has been made across a number of markets thanks to the introduction of smaller devices, reduced complexity and a push from carriers looking to open new data revenue channels.

Mobile hotspot routers like Novatel’s Mifi lineup connect to cellular data networks and then share that data connection wirelessly with any Wi-Fi-enabled device. Novatel announced in October that it had shipped 3 million Mifi-branded mobile hotspots to date.

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ABI: 4G smartphone sales set to explode

Wednesday, October 12th, 2011

Global shipments of smartphones with embedded 4G are expected to grow at a staggering rate over the next five years, reaching 245 million devices in 2016. Market research and intelligence firm ABI Research recently released 4G smartphone shipment projections that show shipments growing at a compound rate of 72% annually over the next five years. Just 4.6 million 4G smartphones shipped worldwide in 2010 according to the firm, but the rapid deployment of LTE networks combined with consumers’ collective need for speed will see that figure increase dramatically moving forward. “Nearly all of the world’s mobile operators, including the largest, are supporting LTE,” ABI Research analyst Michael Morgan said in a statement. “It is an important driver for the LTE ecosystem that dwarfs any other drivers of 4G in general or of WiMAX and LTE, specifically.” ABI’s full press release follows below.

Business and Technology Complications Keep 4G Smartphones to Just 25% of the Volume in Five Years

NEW YORK – October 10, 2011

Shipments of 4G smartphones are expected to grow from 4.6 million in 2010 to 245 million in 2016. LTE smartphone shipments will surpass WiMAX smartphones in 2011 and grow at a 72% CAGR over the forecast period.  Senior mobile devices analyst, Michael Morgan, notes, “Nearly all of the world’s mobile operators, including the largest, are supporting LTE. It is an important driver for the LTE ecosystem that dwarfs any other drivers of 4G in general or of WiMAX and LTE, specifically.”

4G smartphones are emerging as the next major platform opportunity for mobile operators, device OEMs, IC vendors, network equipment vendors, and content companies. Despite the growing number of 4G-capable device segments, smartphones will remain the largest and most important device segment for incumbents and new entrants. Shipment volumes of 4G smartphones will far surpass all other device segments and will greatly affect the design choices and technology paths of products and services looking to cash in on the 4G opportunity.

Initial 4G smartphones are being brought to market to fulfill strong operator demand in spite of numerous technological and business concerns that have yet to be fully addressed. As the 4G device ecosystem charges forward, questions around spectrum allocation and alignment loom over operators and device OEMs seeking to maximize their addressable markets and achieve economies of scale. Despite the superior spectrum alignment and lower component costs of WiMAX technologies, operators are supporting LTE smartphones and hoping that LTE eventually delivers the most robust device ecosystem.

“Mobile operators prefer to support LTE over WiMAX since it makes the most sense strategically to put their weight behind the technology that is best suited to maintaining the status quo among wireless network incumbents,” says Kevin Burden, vice president and practice director, mobile networks.

ABI Research’s new report, “4G Smartphones,” highlights key drivers and barriers faced by market participants in the emerging 4G (LTE & WiMAX) smartphone markets. Regional and country level forecasts demonstrate the potential market value for 4G smartphones and 4G IC vendors.

It is part of ABI Research’s Smartphones and Mobile Devices Research Service.

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Global spending on video games to exceed $74 billion in 2011

Thursday, July 7th, 2011


A new report from market research firm Gartner on Tuesday suggests global spending on the gaming ecosystem will exceed $74 billion this year, up 10.4% from 2010. Gartner also expects annual spending on video games to reach $112 billion by 2015. As the video game industry undergoes a transition that places a sharper focus on casual gaming, Gartner now includes the following in its definition of the “gaming ecosystem:” dedicated video game consoles; software for dedicated consoles; handheld dedicated video game consoles and software; PC gaming software; mobile game software, which includes games for smartphones, feature phones and tablets; and online casual gaming. Video game software sales alone will reach $44.7 billion in 2011 according to Gartner, and it will continue to represent the lion’s share of video game spending moving forward. “This large market size means that many consumers embrace gaming as a core piece of their entertainment budget and will continue to play as long as game publishers deliver compelling and fun games,” said Gartner research director Fabrizio Biscotti in a statement. Gartner’s full press release follows below.

Gartner Says Spending on Gaming to Exceed $74 Billion in 2011

Gaming Software Spending Dominates but Online Gaming Growing Fastest Over the Next Five Years

Egham, UK, July 5, 2011— 

The gaming ecosystem is undergoing major technology and business model transitions that will last beyond 2015. Gartner, Inc. estimates that worldwide spending on the gaming ecosystem* will exceed $74 billion in 2011, up 10.4 percent from 2010 spending of $67 billion. By 2015, spending will reach $112 billion.

Overall, Gartner estimates that the gaming software component will represent $44.7 billion in 2011, and it will continue to dominate the overall gaming market in the next five years as it absorbs almost two-thirds of consumers’ gaming budgets.

“This large market size means that many consumers embrace gaming as a core piece of their entertainment budget and will continue to play as long as game publishers deliver compelling and fun games,” said Fabrizio Biscotti, research director at Gartner.

In 2011, the gaming software spending will be followed at a distance by gaming hardware and online gaming, reaching $17.8 billion and $11.9 billion, respectively (see Table 1).

Table 1: Total Gaming Market Spending, 2010-2015 (Millions of Dollars)

2011 2013 2015
Gaming Hardware 17,797 24,621 27,354
Gaming Software 44,730 51,129 56,512
Online Gaming 11,899 21,453 28,298
Total 74,426 97,204 112,163

Source: Gartner (June 2011)

Within the gaming software market, mobile gaming will experience the largest growth opportunity with its share growing from 15 percent in 2010 to 20 percent in 2015.

“As the popularity of smartphones and tablets continues to expand, gaming will remain a key component in the use of these devices. Although they are never used primarily for gaming, mobile games are the most downloaded application category across most application stores,” said Tuong Nguyen, principal research analyst at Gartner. “For this reason, mobile gaming will continue to thrive as more consumers expand their use of new and innovative portable connected devices.”

The segment that will drive the largest revenue will come from video game consoles (hardware and software). In 2010, it generated more than two-thirds of the gaming ecosystem revenue, and Gartner predicts revenue to grow 4 percent in 2011.

Over the next five years, gaming hardware’s market share will remain constant while software spending will lose share to online-gaming spending, the fastest-growing segment. Gartner estimates consumer spending on global online gaming (subscriptions and microtransactions) will show a compound annual growth rate of 27 percent through 2015, with consumer spending on subscription fees slightly declining while spending on virtual goods will grow exponentially.

“We find that subscription fees are giving way to ‘freemium’ models, in which the game is provided for free to gamers but is monetized through advertising (both in-game advertising and display advertising) and in-game microtransactions, such as the sale of value-added services or virtual-good purchases,” said Brian Blau, research director at Gartner. “This trend is prevailing given the rise of social gaming, in which online gaming is connected to social networking sites and social networking platforms.”

“Users have become multichannel-oriented by choice and expect vendors to continue to deliver quality content and experiences by extending their gaming possibilities across multiple platforms,” said Mr. Blau. “If today’s mobile technology does not evolve quickly enough, the gaming industry is set to see the rate of innovation severely decline. Alternatively, it will provide opportunities in technology and content genres that we can’t foresee today.”

Additional information is available in the Gartner report “Market Trends: Gaming Ecosystem, 2011″ at http://www.gartner.com/resId=1724014.

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Mobile payment transactions to hit $670 billion by 2015

Tuesday, July 5th, 2011

According to a new study published by Juniper Research, the value of near-field communications (NFC) purchases, mobile-sourced money transfers, and mobile payments for digital and physical goods, will reach $670 billion by 2015. That’s a substantial jump up from the $240 billion Juniper Research has pegged for the total value of mobile payments this year. The research firm said that during the next 18 months, 20 countries will begin deploying NFC payment systems and services; transactions from those services will be in the ballpark of $50 billion by 2014. Most recently, Google announced its Google Wallet and Google Deals services in the U.S., and the search giant has large retail partners on board, including Citi, Subway, Mastercard, Sprint, Macys, and Walgreens. The Far East and China, Western Europe, and North America are the largest mobile payment regions, and those areas “will represent 75% of the global mobile payment gross transaction value by 2015,” the report said. Read on for the full release from Juniper Research.

Mobile Payments Market to Almost Triple in Value by 2015 Reaching $670bn, According to New Juniper Report

HAMPSHIRE, UNITED KINGDOM–(Marketwire – Jul 5, 2011) – A new study from Juniper Research has determined that the total value of mobile payments for digital and physical goods, money transfers and NFC (Near Field Communications) transactions will reach $670bn by 2015, up from $240bn this year. These forecasts represent the gross merchandise value of all purchases or the value of money being transferred.

The new Mobile Payments Strategies report revealed that all segments will exhibit 2x to 3x growth over the next five years. This growth will be driven by the rapid adoption of mobile ticketing, NFC contactless payments, physical goods purchases and money transfers as people in both developed and developing countries use their devices for everyday transactions.

Some 20 countries are expected to launch NFC services in the next 18 months, resulting in transactions approaching $50 billion worldwide by 2014. Meanwhile the need for financial access in developing countries is such that active mobile money users will double by 2013 and drive transaction values accordingly.

Senior analyst David Snow explained: “Our analysis shows that emerging segments such as physical goods payments, NFC and money transfers will fuel market growth by a factor of 2.7 times by 2015. Digital goods is the largest segment and, although forecast to more than double, it is not growing as quickly as some of the newer segments.”

Other key messages from the report include:

  • The top 3 regions for mobile payments (Far East & China, W. Europe and N. America) will represent 75% of the global mobile payment gross transaction value by 2015.
  • Digital goods payments will account for nearly 40% of the market in 2015.

The study provides the big picture of mobile payments, providing forecasts of the main market segments of digital and physical goods purchases, contactless NFC and domestic and international money transfers and remittances, providing regional forecasts of gross transaction values.

A new Mobile Money Whitepaper and further details of the study, ‘Mobile Payment Strategies: Opportunities & Markets 2011-2015′ can be freely downloaded from www.juniperresearch.com. Alternatively, please contact John Levett at john.levett@juniperresearch.com, telephone +44(0)1256 830001.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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Berg: Smartphone shipments grew 74% in 2010

Thursday, March 10th, 2011

According to new data issued by wireless market intelligence firm Berg Insight on Thursday, the global smartphone market grew by nearly three-quarters in 2010. Global smartphone shipments hit 295 million units for the year, a 74% increase over 2009 totals. The firm anticipates that shipments will hit a staggering 1.2 billion units in 2015, at which time there will be an estimated 2.8 billion smartphone users scattered across the globe. Berg sees the bulk of the growth coming from mid and low-end smartphone sales, which will continue to become more capable moving forward. “Chipset developers and handset vendors are working on technologies that will ensure a good user experience also for low cost smartphones,” said Senior Analyst André Malm in a statement. “The challenge is to develop a handset with enough memory, graphics performance and processing power to run the operating system with multiple applications while ensuring a responsive system with fluid user interface and still keep costs down.” Hit the break for the full press release.

Berg Insight says shipments of smartphones grew 74 percent in 2010

Gothenburg, Sweden – March 10, 2011: According to a new research report by Berg Insight, global shipments of smartphones increased 74 percent in 2010 to 295 million units. Growing at a compound annual growth rate (CAGR) of 32.4 percent, shipments are forecasted to reach 1,200 million units in 2015. The global user base of smartphones increased at the same time by 38 percent year-on-year to an estimated 470 million active users in 2010. In the next five years, the global user base of smartphones is forecasted to grow at a compound annual growth rate (CAGR) of 42.9 percent to reach 2.8 billion in 2015. Smartphones are receiving more attention from handset manufacturers, network operators and application developers. Most importantly, an increasing number of users are now discovering how smartphones can act as personal computing devices enabling access to the mobile web and applications, besides voice and text services. Although high-end devices tend to get most attention, the primary growth will come from medium- and low-end smartphones.

“Chipset developers and handset vendors are working on technologies that will ensure a good user experience also for low cost smartphones”, said André Malm, Senior Analyst, Berg Insight. “The challenge is to develop a handset with enough memory, graphics performance and processing power to run the operating system with multiple applications while ensuring a responsive system with fluid user interface and still keep costs down”. He adds that smartphones in general will also benefit from advancements in chipset design. In the next five years, further performance increases will come from dual- or quad-core application and graphics processors. These new processors will enable smartphones to rival the performance of dedicated gaming consoles and notebook computers. At the same time, new user interfaces will be developed that make better use of sensors such as accelerometers and gyroscopes as well as cameras to detect movement or gestures without the need to touch the display.

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State University of New York moves to Microsoft Live

Wednesday, December 22nd, 2010

In a short press release yesterday, Microsoft announced a deal with the State University of New York (SUNY) to bring the company’s Live@edu cloud-based collaboration services to all 64 SUNY campuses. “SUNY sought to decrease costs while providing its 465,000 students with up-to-date technology necessary for success in college and in today’s workforce,” reads the press release. “As a result, SUNY students will have access to advanced online software, including hosted e-mail, calendars, online storage, Office Web Apps, instant messaging, document sharing and videoconferencing, among other services.” SUNY estimates that the move to Microsoft’s cloud system will save the state roughly $600,000 over the next five years.

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Would you buy a hydrogen-powered sedan in 2015 for $50,000?

Sunday, May 9th, 2010
Would you buy a hydrogen-powered sedan in 2015 for $50,000?

That’s the question Toyota is asking, announcing plans to release such a thing in that year for that price. That’s more than twice as expensive as the company’s current eco-chic offering, the Prius, but for greenies the advantages here are considerable: zero carbon emissions and a renewable fuel source. Toyota has been showing off its hydrogen-powered FCHV (pictured above) for quite some time now, but the initial model to hit dealers will instead be a sedan (presumably a luxury one at that price point) that would have a range comparable to gasoline models. Toyota hopes to actually make a profit on the car thanks to ever-decreasing fuel cell costs, a goal that the company did not achieve when the Prius initially hit the road and was sold at a loss. Of course, if the hydrogen distribution system in the US doesn’t improve over the next five years then this thing will surely be a loser too.

Would you buy a hydrogen-powered sedan in 2015 for $50,000? originally appeared on Engadget on Sun, 09 May 2010 12:04:00 EST. Please see our terms for use of feeds.

Permalink Autoblog Green  |  sourceBloomberg  | Email this | Comments

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Lenovo talks up LePhone, shows off app store ahead of May launch

Tuesday, April 20th, 2010
Lenovo’s Android-based LePhone (not LePhono, sadly) may not be officially launching in China until next month, but the company did just hold a launch event of sorts in the country, in which it revealed a few new details and did a fair bit of boasting. According to The Wall Street Journal, Lenovo says that it’s aiming to sell “millions” of the phones in the next five years, and “tens of millions” after that — although not just involving this particular phone, obviously. Lenovo COO Rory Read also reportedly further added that the company is ready for a “tough fight” against Apple’s iPhone, and that Lenovo will have a “better brand position” that RIM, which hasn’t yet gained a significant foothold in China. That’s certainly plenty ambitious for a company new to the cellphone space, and should no doubt only further fuel those rumors of a certain acquisition. In other le news, Lenovo also apparently further demonstrated the tweaked version of Android that the handset will use (first seen at CES), and it has shown off its own app store for the first time, which can already be browsed at the site linked below.

Lenovo talks up LePhone, shows off app store ahead of May launch originally appeared on Engadget on Tue, 20 Apr 2010 15:45:00 EST. Please see our terms for use of feeds.

Permalink I4U News  |  sourceWall Street Journal, Lenovo App Store  | Email this | Comments

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