03 Sep 2020
Posted in Technology
China’s enterprise mobility market revenue to register 6.7% CAGR over 2019-2024, says GlobalData
As an immediate impact of the COVID-19 crisis on enterprise ICT spending in the country, enterprise mobility revenue in China will drop from US$3bn in 2019 to US$2.8bn in 2020 but will maintain a compound annual growth rate (CAGR) of 6.7% between 2019 and 2024, driven by a steady rise in the enterprise adoption of remote working and bring-your-own-device (BYOD) strategies, says GlobalData, a leading data and analytics company.
The uncertainty seen in business environment in the immediate aftermath of COVID-19 has led enterprises in China to take a conservative approach towards ICT spending in 2020, which will dent enterprise mobility revenue during the year. However, with business activity slowly returning to normalcy, enterprise spending on ICT, including enterprise mobility solutions is expected to recover in 2021.
Nidhi Gupta, Technology Analyst at GlobalData, says: “With businesses gradually returning to full scale operations by allowing their resources to even work remotely and use their own devices to connect to corporate network, investments on enterprise mobility solutions will only increase going forward. As a result, enterprise mobility market in China will see its revenue growth rebound in 2021 and increase steadily over the forecast period.”
Mobility software/applications will remain the largest revenue contributing segment for the overall enterprise mobility market in China through the year 2024. Mobility services, on the other hand, will see their revenue grow at a CAGR of 6.8% over the forecast period 2019-2024.
Mobile application management software represents the largest and the fastest growing enterprise mobility software category with its revenue poised to grow at a CAGR of 10.3% over the forecast period. With steady rise in the number of employees using their personal devices for work as a part of the BYOD strategy, enterprise investment on mobile application management software, which enables IT administrators to secure and control enterprise applications on such devices, leaving users’ personal apps and data untouched, will continue to grow.
Ms. Gupta concludes: “While both large enterprises and, small and medium businesses are equally keen on enterprise mobility investments, the former, given their long-term digital transformation strategies, will turn out to be the highest spender on mobility software and services in China through the forecast period.”