Russian Mobile Business Application Market
The market for mobile solutions in Russia is growing following the growth of sales of mobile devices and mobile traffic. Among the factors that influenced the market dynamics in 2014, we can note, in particular, the development of 4G technology (LTE), and as a result - an increase in the throughput of communication channels, the speed of Internet connection on mobile devices. The dynamics were also influenced by a decrease in the cost of mobile gadgets and quite a large demand for mobile applications from business.
Content |
2014 - 2015
Mobile Applications for Business Market Estimates
J'son & Partners Consulting estimated the volume of the Russian mobile application market at the end of 2013 at 8 billion rubles. with a forecast of up to 38 billion rubles. by 2016. The mobile business segment of applications was estimated by analysts a year earlier, in particular, according to the results of 2012, J&P called the figure $3.2 million (about 100 million rubles, - approx. TAdviser). Predicting the market development 4 years ahead, analysts called the average annual growth rate at 110%, and the market volume in 2016 was supposed to reach $62.9 million. It is worth noting that all forecasts were made even before the start of economic problems in the country and before exchange rate fluctuations.
In a survey at the end of 2015, TAdviser invited participants in the Russian mobile business application market to estimate the market volume according to the results of 2014 and give a forecast for the next couple of years. As it turned out, the numbers called companies differed significantly from each other. First of all, this can be explained by the lack of clear market boundaries, and each company at its own discretion includes/excludes certain segments.
This, in particular, says Konstantin Astakhov, head of mobile and portal solutions at Krok:
"Each of the Russian players sums up their results, the fact is that someone believes throughout the market, others - in the market of mobile applications for business, and others - include all services in the framework of mobile development, including consulting and implementation. For example, there is evidence that mobile business development accounts for about half of the total mobile development market. And according to Technavio analysts, the average annual growth rate of the segment may be about 13% until 2019. The direction of mobile solutions "Krok" also shows positive dynamics. So, at the end of 2014, revenue for it increased by almost 20%. Already it is noticeable that the direction will increase in 2015. "
Fyodor Yurov from Bakka Soft estimates the market volume at the end of 2014 at about $400 million, and the forecasts for 2015 and 2016 are as follows - $500 million and $850 million. As for the dynamics, according to the representative of Bakka Soft in 2014, the market volume doubled, then until 2018 the dynamics will be about 25-40%.
Sergey Gromov, CEO of BI Consult, a company specializing in business analysis systems, believes that "the mobile development market is growing unambiguously more than 100% per year."
"The overall performance of our company slowed down in 2015. 2014 was very good - many large projects, in 2015 the crisis affected at the beginning of the year and there were few new projects, now by the fall the number of business analysis projects has returned to the previous level and I think 2016 will be significantly better than 2014 (we plan 50% growth), "says Gromov, noting that" 2014 was the 'golden age' of recent years. "
The market for mobile business applications in EOS is very cautious:
"I, approximately, very roughly estimate the market for mobile business applications according to the results of 2014 - $27 million. According to the results of 2015 - $48 million, in 2016 - somewhere $65 million. That is, horse racing by 2014 compared to previous years is very significant - almost 8.5 times (from 2012), in 2015 growth slowed down significantly, in 2016 there is also growth, but the pace will slow down again. This, of course, is due to the general economic situation and a reduction in IT budgets. But I emphasize, there are no estimates in numbers by year and by the market for mobile business applications. Just as there is no unity in the assessments of experts. Therefore, the figures given by me are approximate and purely in my opinion, "emphasizes Elena Ivanova, head of the EOS Marketing Department.
Speaking about the dynamics of the market, she also adds that in 2014 there was precisely an explosive growth of this market - mobile in general and mobile for business, in particular.
"According to my estimates, the market share of mobile applications for business from the entire market for mobile applications is about 30%. There is very great potential and there is room to grow. That is why IT companies attach great importance to the development of mobile applications, "Ivanova notes.
Maxim Andrianov, head of business solutions sales and custom development at Softline, believes that due to the unstable economic situation in 2014-2015, all industries suffered, including the main "consumers" of such developments (mobile applications, approx. TAdviser) - banks, retail and telecom, which cannot but affect the overall situation in the segment.
"Separately, I want to note business applications, in them the decline can be noticeable. From our point of view, this is due to the fact that it is in a crisis that the business wants to get a quick return on investments, which is hardly possible when implementing mobile business applications. In the coming years, if there are no ways to monetize applications that reduce the final cost of ownership for the customer, the market will face stagnation or a fall, "said Andrianov.
Mobile Application Market Drivers for Business
The market for mobile solutions is growing following the growth of sales of mobile devices and mobile traffic. Among the factors that influenced the market dynamics in 2014, we can note, in particular, the development of 4G technology (LTE), and as a result - an increase in the throughput of communication channels, the speed of Internet connection on mobile devices. The dynamics were also influenced by a decrease in the cost of mobile gadgets and quite a large demand for mobile applications from business.
MobilityLab CEO Sergey Orlik recalls that according to Gartner, each corporate user has an average of 3.5 computing mobile devices that he uses for business purposes. As a rule, it is a corporate laptop, a personal laptop, a mobile phone, and often another tablet.
Inthis context, companies need to maintain a single corporate network scenario. Already today, companies cannot ignore the presence of mobile devices in the hands of corporate employees. This forces them to provide a single information space in which the corporate user works, "Orlik notes.
People get used to the convenience of mobile communications, access to social networks and instant messengers, useful applications, and want to get the same benefits in the corporate environment.
"In addition, the Russian enterprise segment of the business is distinguished by a large number of internal customized IT systems, for mobile work with which the mobile application originally supplied by the vendor is no longer suitable. In addition, mobile applications strive to integrate with a range of enterprise systems. All this gives rise to the need to create your own enterprise mobile applications, or seriously castomize vendor products. At the same time, at the moment, half of the production companies, retailers and state organizations in Russia do not have their own applications. Therefore, the saturation is very far away, and the mobile business development market will continue to grow, "says Konstantin Astakhov.
According to Maxim Andrianov, today the situation in the field of solution development has a positive impact on the market.
"Experts have new tools that allow you to create applications compatible with most popular mobile platforms. This significantly reduces the cost of both primary development and subsequent ownership. Also today in the development market, supply exceeds demand, which also leads to lower prices for applications, "said Andrianov.
Elena Ivanova believes that in 2014 the dynamics were influenced by the factors of the general development of IT systems of companies and users actively wanted to develop functionality. In addition, users became more mobile and accordingly required the ability to work with enterprise systems from anywhere.
"If we talk about such a segment of mobile applications for business - like mobile customers for banking operations or insurance companies, then the driver of this segment was a sharply increased number of people using mobile devices (tablets, phones, etc.)," Ivanova notes.
In 2015, she said, the drivers remained the same, but growth slowed down due to the economic and political situation.
"It was also added here as drivers that users have already tried to work in mobile applications, understood how convenient it is and now want to develop functionality, usability, convenience. Here we are talking about ECM systems, for example, mobile scanning or recognition of texts and their translation into electronic form. As well as approaching the logic of work as in social networks, which is very familiar for many, "says the head of the EOS Marketing Department.
Sergey Gromov notes that all developments are now switching to tablet platforms.
"Our vendor Qlik has a new product - Qlik Sense, it automatically provides any development for use on tablets (made on HTML5). We worked with only one vendor (Qlik), but at the moment we have several application developers under iOS and we began to provide services for the development of native applications. Soon we will launch new cloud enterprise business analysis applications for mobile platforms (iOS, Android) - for example, based on Amazon cloud services, "says Gromov.
Bakka Soft believes that the main factors affecting market dynamics are currency jumps and the market's reorientation to remote ways of servicing and interacting with customers.
See also
- Corporate Mobility Market Structure
- 1990.E2.80.931995 History of Russian corporate mobility
- BYOD_.D0.B2_.D0.A0.D0.BE.D1.81.D1.81.D0.B8.D0.B8 Corporate Mobility Bring Your Own Device - BYOD
- Overview: Mobile Technology for Business
- Mobile Device Management (MDM) Mobile Device Management
- Mobile Device Management Class Product and Project Catalog
- History of Russian corporate mobility
- Mobile application management (MAM)
- Mobile content management (MCM)