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M-Commerce Growing from 24% of Total E-Commerce Market Value on Back of Smartphone Adoption, Claims ABI Research
LONDON--()--Given recent developments, the m-commerce market is expected to account for 24.4% of overall e-commerce revenues by the end of 2017. This represents the result of some spectacular growth in 2011, when the mobile online commerce market doubled in size to $65.6 billion. ABI Research’s mobile online commerce report found that this growth is being fuelled by the rapid adoption of smartphones in both mature and developing markets, as well as a retail market in which traditional brick-and-mortar retailers are implementing multi-channel strategies in the face of increasing competition from Internet-based vendors.
“Consumer awareness has been boosted by the “Groupon effect”
Currently, m-commerce is a relatively small percentage of the overall e-commerce market, but growing at a much faster rate. Mobile reached a tipping point in 2011, fuelled by the move from standalone apps and storefronts to the current situation where m-commerce platforms, apps, and services are now being enhanced, optimized and integrated.
Practice director, John Devlin, commented that, “M-commerce is not yet mass market, but it is delivering remarkable growth in tough economic conditions. There remain questions, as how to best realize the value and ROI of m-commerce but innovative retailers with the resources to invest in the development of their mobile portfolio have clearly identified this as the way forward.”
Smartphones and the “app-store mentality” have led to the market developing incredibly quickly. Consumers are able to use their mobile devices to purchase a range of physical and digital goods and to choose from a range of options as to how they pay for them. The introduction of HTML5, visual search, NFC, augmented reality, full Internet browsing, and (in-door) location will increasingly play a part in “showrooming” and m-commerce.
“Mobile is now transitioning from what was initially viewed by many as a retail experiment to a viable component of a full-blown multi-channel offering,” added Devlin. “Consumer awareness has been boosted by the “Groupon effect” and now everyone wants a bargain. This is further exacerbated by the need in the retail sector to a) differentiate from the competition, b) be seen to be offering value, and c) an enhanced need to increase consumer engagement and interaction. Mobile helps to fulfill all of these criteria.”
The mobile online commerce report is part of ABI Research’s Mobile Money and Shopping(http://www.abiresearch.com/products/service/mobile_money_and_shopping) Research Service, which consists of detailed market data, focused research, analysis and market insight.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.