USD2.1 trillion on digital information this year
BUSINESSBy BiztechAfrica - July 28, 2012, 7:50 p.m.
Consumers will spend USD2.1 trillion worldwide on digital information and entertainment products and services in 2012, according to Gartner.
This amounts to a USD114 billion global increase compared with 2011. Gartner says spending will continue to grow at a faster rate than in the past, at around USD130 billion a year, to reach USD2.7 trillion by the end of 2016.
The USD2.1 trillion consists of what the consumers will spend on mobile phones, computing and entertainment, media and other smart devices, the services that are required to make these devices connected to the appropriate network, and software and media content that are consumed via these devices.
"The three largest segments of the consumer technology market are, and will continue to be, mobile services, mobile phones and entertainment services," said Amanda Sabia, principal research analyst at Gartner. "There are two product classes, which in terms of absolute dollars are significantly smaller, but offer tremendous growth by 2016. These are mobile apps stores and e-text content. We fully expect consumers to more than triple their spending in these latter two categories by 2016."
Mobile services are expected to generate 37% of total worldwide consumer technology spending in 2012. Entertainment services, cable, satellite, IPTV and online gaming, will account for 10% of total consumer spending on technology products and services in 2012.
Gartner predicts that consumer spending on mobile apps stores and content will rise from USD18 billion in 2012 to USD61 billion by 2016, and that spending on e-text content (e-books, online news, magazines and information services) will rise from USD5 billion in 2012 to USD16 billion by 2016.
"Our research consistently shows that consumers are willing to pay for content they deem "worth it,"Sabia said. "However, our research has also found that consumers are willing to tolerate an ad-supported business model in exchange for free functions and content such as personal cloud storage, social networking, information searching, email, IM, person-to-person (P2P) voice (Skype and mobile voice over IP [VoIP]), streaming/downloading video and musical content when accessing the Internet."
MORE BUSINESS NEWS
Mustek, Huawei International Pte. Ltd. in $51 million project for Zambia Railway LimitedMustek Limited has announced its contract to supply and deliver over $12 million worth of Huawei’s ‘Signalling and Telecommunications’ equipment to a consortium upgrading Zambia Railway Limited. Read More
Senanu named AccessKenya deputy CEOAccessKenya Group has appointed Kris Senanu as its new Deputy Chief Executive Officer. Read More
Twinpine showcased at MWC14Nigeria’s Twinpine Mobile Advertising Network showcased its technological capacity at the MWC14. Read More
Strong growth for mobile printer marketThe global mobile/portable printer market will reach USD11.87 billion by 2018, says TechSci Research. Read More
Worldwide tablet sales up 68%Worldwide sales of tablets to end users reached 195.4 million units in 2013, a 68 per cent increase on 2012, according to Gartner. Read More
IHS secures US$490m to fund African expansionIHS Holding Ltd. has secured US$490 million of equity and debt in its latest financing round. Read More
PIVOT East partners with Tech Hubs for 2014 startup competitionThe organisers of PIVOT East, one of the most prestigious mobile startup competitions and conferences in East Africa, have announced a partnership with Tech Hubs across the region for 2014. Read More
Top ten named in Google Africa Connected contestThe ten finalists have been named in Google’s Africa Connected competition. Read More
VMware completes acquisition of AirWatchVMware, the global leader in virtualisation and cloud infrastructure, has completed its acquisition of AirWatch, the leading provider of enterprise mobile management and security solutions. Read More
FEATURED STORYMACRA demystifies spectrum management
Malawi's regulator explains the issues around spectrum allocation. Gregory Gondwe reports.
BEST READ NEWS
IN DEPTHYouthConnekt launches Mobile Apps for Human Development Challenge in Rwanda
Rwanda’s Ministry of Youth and ICT and the UNDP, in close collaboration with Motorola Solutions, will power a Mobile App Challenge that will be implemented by YouthConnekt.