India’s enterprise mobility market primes up for more investments

India’s enterprise mobility market primes up for more investments

Multi-segmented sector to register 5.5 per cent CAGR in value over next five years, fuelled by WFH and home schooling.

With the onslaught of the Covid-19 pandemic and the resultant regime of working from home and online classrooms across Indian households, enterprise mobility is at the top of the agenda of most CIOs and investors in the country this year – waking up to the reality that remote work and cloud access are an urgent necessity today and no longer a technology of the distant future.

It’s therefore not wonder that despite a drop in its value from $860 million in 2019 to $800 million in 2020, India’s enterprise mobility market is poised to maintain a compounded annual growth rate (CAGR) of 5.5 per cent between 2019 and 2024, driven by the rising enterprise adoption of remote working and bring-your-own-device (BYOD) strategies.

Mobility market on the rise

The uncertainty seen in the business environment amidst the Covid-19 pandemic initially led enterprises in India to take a conservative approach towards ICT spending last year, which somewhat dented market opportunities for enterprise mobility in the country. However, with business activity picking up and caseloads of Covid-19 infections receding, enterprise spending on ICT including the enterprise mobility solutions is on the verge of a strong recovery this year.

“With businesses slowly returning to full-scale operations by allowing their employees to even work-from-home and use their own devices to access corporate network, their investments on enterprise mobility solutions that can support remote working model by securing, monitoring and managing mobile devices, including those owned by employees, will only increase going forward,” said Nidhi Gupta, technology analyst at GlobalData, a leading data and analytics company.

Record growth expected

Enterprise spending on ICT including the enterprise mobility solutions is on the verge of a strong recovery this year.
Enterprise spending on ICT including the enterprise mobility solutions is on the verge of a strong recovery this year.

According to Data Bridge Market Research, the BYOD-enterprise mobility market is expected to grow at a CAGR of 16.30 per cent globally between 2020 and 2027, fuelled largely by rising consumer prevalence toward gadgets such as smartphones, mobiles and increasing adoption of mobility in the automobile sector. Moreover, with technological advancements, the declining cost of hardware in BYOD will fuel further market growth.

In India, enterprise mobility software/applications – including mobile content management software, mobile device management software and telecom expense management software categories – represent the largest market segment for the enterprise mobility market by value.

“The growth in the software segment will be led by mobile application platform management (MAPM) software, which will see its market value increase at a CAGR of 8.3 per cent over 2019-2024. With many companies expected to hire new staff as their businesses pick up and allow them to work remotely, their spending on MAPM software, which can equip the staff with enterprise apps they need and provide secure access to the same on their mobile devices, will increase,” said Gupta. “Managed mobility services will see its value grow at a 5.4 per cent CAGR during the forecast period. The growing complexity of managing the ever-rising number of device platforms and apps connecting remote workers with enterprise infrastructure will drive demand for managed mobile services,” she added.

The robust prospects for growth in the sector – along with the possibility of incentives in the 2021-22 federal budget – is certain to attract a host of investors into this multi-segmented market in India.

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India Global Business
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