Demand for smart connected devices is rising, says IDC

Wednesday 12 June 2013

Demand for mobile technology solutions is continuing to increase, a new report has claimed.

International Data Corporation's (IDC) latest Worldwide Quarterly Smart Connected Device Tracker indicates that global shipments of smart connected devices will surpass 1.7 billion units by 2014.

Growing demand for mobile devices in emerging markets will help the market maintain momentum, with IDC expecting these to account for one billion units next year.

The BRIC countries - India, Brazil, Russia, India and China - are expected to generate shipments of 662 million units, with a value of more than $206 billion (£132 billion).

More than 650 million units are expected to be shipped to developed markets, with the US, UK, and Japan capturing more than 400 million units with a shipment value of $204 billion.

A compound annual growth rate (CAGR) of 17 per cent is expected in the emerging markets over the 2012-2017 forecast period, compared to a seven per cent CAGR in more developed regions.

IDC believes the smart connected device market will be largely driven by growing demand for smartphones and tablets.

Of the 1.7 billion units forecast to be shipped in 2014, more than 1.4 billion units are expected to be smartphones and tablets.

PCs are expected to account for just over 300 million units.

"It is evident that smartphones and tablets have successfully established a strong presence as the 'second screen', owing to the transformation in usage patterns, device affordability, and, most of all, the comfort of a mobile and digital lifestyle," said Megha Saini, research analyst with IDC's Worldwide Smart Connected Device Tracker.

"Vendors and original equipment manufacturers need to be aware of the different usage patterns so as to drive product innovation that suits the tangible needs of their digital consumers."

Bob O'Donnell, program vice-president for clients and displays, said smartphone and tablet prices are now "less prohibitive" to first-time buyers in emerging markets.

"Although the double-digit growth of smartphones and tablets in emerging countries is a mouthwatering prospect, the low selling price also means that vendors will face huge struggles to meet the demands profitably," he stated.

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Posted by Alex Boardman