Mobile software is set for a boom, with mobile carriers willing to carry both data and voice, and the introduction of third-generation (3G) phones. Couple with expansions in phone memory, increases in processor speed, and networks that allow for faster data transfer, mobile software is set for exponential growth.
New analysis from Frost & Sullivan finds that worldwide market for next-generation mobile software earned revenues of over $17,9-billion in 2007 and estimates this to more than triple by 2013 to reach $67,3-billion.
“The mobile software market is expected to grow at a faster rate than the total software market over this period,” notes Frost & Sullivan research analyst Daniel Longfield. “However, mobile carriers are extremely cautious about spending, which means that mobile software vendors have to prove the value proposition and return on investment of their products before clinching the deal.”
One viable business model for software developers would be to partner with mobile carriers and obtain revenue by troubleshooting and fixing day-to-day business model problems. New carrier services require fixes to the billing, marketing, and early product lifecycle bugs. By tackling these issues quickly, mobile software vendors can be a huge help to the carriers.
“Over the next decade, the cycle of software development, where many mobile software products and applications were developed originally for other types of devices, will reverse,” says Longfield. “This is because the number of mobile devices manufactured is expected to continue to outpace all other types of personal electronics. Smart phones also now offer more processing speed and memory.”
There is a mass move toward mobile devices, as people use them for tasks that a few years ago were performed on desktop computers, laptops, MP3 players, electronic gaming platforms, or digital cameras.
Mobile software is key to placing mobile devices at the forefront of consumer habits by incorporating the applications and capabilities of other electronic devices into mobile devices. This, in turn, will benefit all members of the mobile value chain.
The mobile software market is therefore expected to witness greater standardisation, technological advances, and competitive changes. All these will further increase the mobile software market size.
“Mobile software vendors are poised to receive large revenue increases from carriers and other mobile market value chain members,” says Longfield. “However, these spoils will not come without great effort to patch endless gaps in the current carrier service infrastructure and business models.”