Smartphone Health Applications Will Exceed $400 Million Annually by 2016 -- ABI
The sports and health mobile application market will grow to over $400 million in 2016 - up from just $120 million in 2010, ABI Research reported in new research released last week. Much of that growth will be spurred by the ability of mobile handsets to easily connect to wearable devices that in turn can deliver new functionality, accuracy, and appeal to sports and fitness applications. As the mobile handset adds new ways to access and support healthcare applications, it will become increasingly important within the healthcare market, including home monitoring systems for aging users, personal emergency response services, and remote healthcare monitoring applications. However, sports and fitness will dominate the mobile health application market.
“Downloadable apps are moving the sports tracking device market from proprietary devices to mobile phones, but adoption has been limited by the data they can collect. However, with the connectivity that Bluetooth Smart will embed in mobile handsets, wearable devices will bring greater detail to mobile handsets,” says Jonathan Collins, principal analyst. Handset connectivity to wearable devices brings a new dynamic to the sports monitoring market.
Athletic equipment players have already moved to support handset applications by either using proprietary or battery-draining traditional Bluetooth wireless. Meanwhile, traditional players such as Garmin, who recently launched its first handset application for this market, and Polar have delivered high-end specialist systems. Over the next five years, these players will increasingly have to compete directly with the mobile handset. They will also face a slew of start-ups and new entrants offering applications, online communities, and wearable devices offering a range of applications and services. ABI Research’s report, “Mobile Devices and mHealth,” examines the issues driving mobile handset adoption in sports and healthcare applications. This includes forecasts for mobile application downloads, wearable devices, wireless connectivity, regulation, and regional adoption for the next five years.
Lower Prices will Drive Uptake of Mobile Voice, Internet Services, says Frost & Sullivan
While the majority of countries have penetration levels lower than 5 per cent, African countries have experienced a steady uptake of mobile communications. Promisingly, Frost & Sullivan forecasts considerable growth in mobile, broadband and Internet services in Africa during 2010-2015
New analysis from Frost & Sullivan “Sub Saharan African Communications Quantitative Quarterly Tracker” finds that many African countries had 181.7 million mobile and fixed telephony subscribers and 29.8 million Internet subscribers in 2010. Research covers the communications markets in South Africa, Mozambique, Tanzania, Congo (Democratic Republic), Lesotho, Nigeria and Uganda and estimates the total to reach 266.1 million mobile and fixed subscribers and 77.5 million Internet subscribers respectively in 2015. Operators are at the forefront of spurring market growth by passing network cost savings on to end users. They are investing in shared terrestrial fiber optic infrastructure, to increase transmission capacities and connect end users to undersea cables. They are also adopting infrastructure sharing at base stations, in order to minimize the overall cost of delivering services to end users.
"The growth of mobile voice and Internet markets in Africa is expected to be driven primarily by a decline in retail price for these services," notes Frost & Sullivan's Information and Communication Technologies Industry Analyst Vitalis G. Ozianyi. "Operators in the region are investing heavily in mobile infrastructure, including base stations and transmission networks, with the aim of making higher network capacity available at a lower cost."
The experiences in the uptake of mobile telephony services in African countries, such as Kenya, that have experienced significant penetration levels should provide a template for success. Engaging governments to offer tax subsidies on mobile phones, laptops and smartphones, that are required to access Internet services, could also boost penetration levels. Offering an extensive range of Internet access packages would assist in meeting the budget capabilities of a wider base of consumers.
(Frost & Sullivan, 877/463-7678, www.frost.com.)
CIOs, IT Departments To Face Major Role Shift In Cloud Outsourcing, Says IDC
The rapid evolution of cloud services and a greater understanding of its uses and benefits have pushed cloud computing well into the mainstream in 2011. As we move into 2012, International Data Corporation (IDC) predicts that this evolution will continue as users further test the capabilities of the cloud services that are available,
But by 2015, IDC envisions a very different scenario; cloud services will become an everyday sourcing option for the CIO, forcing changes on both the vendors and users of cloud services and technologies. More insights will be revealed in a forthcoming report, “IDC Asia/Pacific (excluding Japan) Cloud 2012 Top 10 Predictions".
“In the next 24 months, ‘the cloud' as a marketing label will cease to exist, as the success of cloud services will mean that it will permeate the sourcing strategies of the CIO and business unit manager alike”, says Chris Morris, Lead Analyst for Cloud Services at IDC Asia/Pacific. He adds, “The use of externally sourced business and IT services from the cloud will form the basis of what we see as the Outsourcing 3.0 period, and will provide an extensive portfolio of services from which innovative solutions can be constructed. With Outsourcing 3.0, the cloud will metamorphose into a universal service catalogue of individual cloud services. This will begin to replace both traditional information technology outsourcing (ITO) and business process outsourcing (BPO) engagements as well as on-premises infrastructure."
In the future Outsourcing 3.0 scenario, the sourcing of business and IT services from multiple external suppliers will result in a major challenge for the CIO. In effect, the CIO will become a service broker and aggregator, involved in sourcing, integrating and managing the services on behalf of their business units. This responsibility will prove to be a major challenge, as IT Service Management (ITSM) processes are not yet fully implemented for existing on-premises applications in most organizations in this region.
In 2011, IDC estimates that 80% of new enterprise application development will be for the public cloud, and by 2015, 20% of enterprise application spending will be cloud-sourced. As a result, cloud service buyers will now have to manage a much larger number of services and vendors, adding a level of management difficulty to what should have been an easier adoption of new services. To counter this, cloud service providers (CSPs) will provide an integrated management of disparate cloud services – cloud orchestration – in 2012 and beyond. As a result, the market will not be talking so much about cloud services by 2015, but will consider these as a natural evolution of outsourcing, or Outsourcing 3.0.
(IDC, +65-6829-7758, www.idc.com.)
China E-Commerce Requires Adjustment To Different Behaviors, Conditions BCG Says
China has more Internet users than the United States and Japan combined, and it already has 145 million online shoppers (second only to 170 million in the U.S.) With exponential growth expected that could bring the number to 329 million by 2015, the e-commerce market in China is now considered the world’s most valuable. Despite this vast window of opportunity, many companies are leaving significant growth potential on the table, according to Boston Consulting Group (BCG).
They’re allowing merchants that sell on Chinese shopping marketplace giant Taobao.com, as well as other e-commerce companies, to shape consumer perception and the market overall. These are insights from The World’s Next E-Commerce Superpower: Navigating China’s Unique Online-Shopping Ecosystem, a new report from The Boston Consulting Group (BCG). The report, which included a survey of more than 4,000 online shoppers in China, is available on bcgperspectives.com.
“Consumerism is already big in China—people simply love to shop. But China is unusual in that Internet access has far outpaced the reach of the top physical retailers, which means that e-commerce development probably will not mirror the pattern in other countries,” said Waldemar Jap, a Hong Kong-based partner at BCG and co-author of the report. “Companies that want to compete will not only have to understand how Taobao and others may already be shaping their online presence but they will also have to engage consumers via multiple online—and offline—channels.”
Less than 10 of China’s urban population shopped online in 2006. The figure jumped to 23 in 2010 and will nearly double to 44 by 2015. An astonishing 30 million additional Chinese consumers are expected to shop online for the first time every year until 2015. E-commerce in China will go from representing 3.3 of the country’s total retail value today to 7.4 in 2015. It took the United States ten years to achieve that growth. Within five years, most of today’s online shoppers in China will be spending RMB 6,220 (or about $980) per year, twice what they are today. That’s close to the U.S. average of $1,000. The low cost of shipping in China gives e-commerce an ongoing boost.
It costs $1 on average to ship a 1-kilogram parcel, versus $6 in the U.S. Up to a quarter of e-commerce demand in China is for products consumers cannot find in physical stores—a circumstance unique to China, where the immensity of the country limits the coverage of physical retailers. In fact, there are many consumers, especially the younger ones, whose first contact with a brand or type of product occurs on the Internet.