Mobile commerce is the process of delivering electronic commerce capabilities through wireless technology. The easy accessibility and convenience that they offer, the M commerce services have started gaining immense popularity since the recent past. Mobile commerce is branded as the virtual retail store that can fit in one’s pocket. Rapid development in the field of information and technology plays a huge role in the current scenario in the global M commerce market, which is booming with opportunities for growth and revenue. Smartphone revolution in the emerging markets is also driving the demand for various innovative services, which is a great sign for the businesses in this industry.
Segments in Mobile Commerce Industry
Research experts categorize the global industry on the basis of the types of users, transactions, payment methods, and dominance of the geographic regions. On the basis of the transactions, the global M commerce market is divided into M booking, billing, ticketing and such other mobile services. On the basis of the payment methods, the industry is segmented into wireless app protocol, near field communication, SMS, and direct carrier billing. Mobile commerce services are used by both smartphone users as well as feature phone users. On the basis of the geographic regions, the industry is divided into Middle East and Africa, Europe, Latin America, North America and Asia Pacific.
Trends & Drivers
The global Mobile commerce market is strongly driven by the rising demand from various parts of the world. With rising demand, service providers in the market are also spending more on bringing safe and fast services, through improved bandwidth and extra mobility. Both these factors are proving to be crucial drivers for the global industry. Apart from that, rising penetration rate of smartphone devices across the world are also creating great business opportunities for the mobile commerce industry. Increased convergence between online and offline activities is also a significant driver for the industry. Utilization of device specific capabilities and higher level optimization of the products are said to be major drivers.
Despite various restraints like slow speed of internet services, especially across the developing countries and dearth of mobile friendly websites, the global industry is expected to grow at significant CAGR. According to the expert analysis of all the trends, drivers and segments of the industry, the global M commerce market is expected to grow at a CAGR of over 32% from 2014, to reach past $467.35 billion by the end of the year 2019. According to the same reports, as of 2014, the industry is well positioned at $116.12 billion. During the study span of the next four to five years, the global industry is expected to be driven by the rising demand of mobile shopping and smartphones.