The mobile age of the Internet continues to roll on with smartphones and tablets now accounting for six out of every 10 smart connected consumer devices in the market, up from 17 percent in 2008.
According to new analysis released by IHS Markit, the global smartphone installed base will grow from 4 billion in 2016 to more than 6 billion smartphones in use by 2020. In line with that, messaging and communications apps will grow from 5 billion users in 2016 to 7.5 billion by 2020.
“Mobile innovations, new business models and mobile technologies are transforming every adjacent market as the mobile industry diversifies from the maturing smartphone market,” said Ian Fogg, director at IHS Technology. “Revenues for smartphones shipped in 2020 will total $355 billion.”
Global consumer spending on mobile apps is set to reach $74 billion by 2020 up from $54 billion in 2016, according to IHS, with Africa, the Middle East and Latin America the fastest-growing regions for mobile app spending.
The growth in smartphone penetration is also disrupting the traditional payments and financial services industries.
There were more than 120 million active mobile money accounts in emerging markets in 2016, according to the IHS analysis, and the number of addressable smartphones for device-based payment services will increase from 2.7 billion in 2016 to more than 5 billion by 2020.