Market Dynamics
Global Managed Mobility Services Market Drivers
Increasing Adoption of BYOD in Multiple Industries
Over time, the trend of enterprise mobility has emerged. Today's businesses primarily concentrate on their core competencies and business strategies, which encourage using and adopting bring-your-own-device policies. Hence, there will be a greater need for efficient mobility services, likely increasing demand for managing these mobile devices. Additionally, the growing number of mobile subscribers in developing nations like China, India, Brazil, and others is driving the adoption of BYOD policies, increasing operational flexibility and work efficiency.
Businesses with a BYOD policy save, on average, USD 350 annually per employee, claims Cisco. Additionally, the reactive programs can increase these savings to USD 1,300 per employee annually. For SMBs, these cost savings can add up fast and enable these SMBs' to protect their bottom line while improving employee productivity. Small and medium enterprises (SMEs) embrace the BYOD policy, which further demands various security software to protect corporate data among different devices. Different industry verticals, such as retail, banking, financial services, insurance, IT and telecom, manufacturing, aerospace and defense, healthcare, and others, use cybersecurity solutions, like managed security, to protect their data. Some advantages of BYOD for organizations are that it offers enhanced flexibility, raises employee satisfaction, allows greater choice for the type of device used to complete the task, and cuts hardware spending and software licensing costs for enterprises. Thereby optimizing operational costs and establishing a positive. This drives the demand for mobile device management solutions. IBM, for example, offers the solution to increasing visibility, management, and security with BYOD. For example, the company has incorporated both mobile device management and enterprise mobility management to protect documents, applications, and content while also managing user access and identity.
Companies Outsourcing IT Activities
Organizations rely more on the success of innovative applications and extensions that IT can offer due to digital transformation. Information technology has undoubtedly become a significant competitive advantage for most organizations. Furthermore, IT outsourcing has evolved beyond a simple cost reduction method thanks to cloud migrations and available cloud services. This new form is driven by organizational goals for business expansion, customer satisfaction, and market disruption. In the past, deploying servers, data centers, networks, specifications, man-hours, and lines of code allowed for the measurement of IT outsourcing. More adaptable, asset-free IT services are now readily available on demand thanks to the growth of cloud-based services. On the other hand, cloud computing has also fundamentally changed how businesses pay for and access IT services.
Then, the increasing demand for cloud outsourcing has been indicating that companies prefer cloud platforms from public sources for data storage purposes. Also, businesses operating over the cloud are likely to get concerned about security threats and will focus on eliminating all possible threats by outsourcing IT security services. This way, the demand for expert knowledge of the vendor will be required, along with an easy delegation of responsibilities. Thus, driving the managed mobility services market.
Global Managed Mobility Services Market Restraint
The Dearth of Control over Operations and Cost Visibility
The customers in the market are still witnessing challenges for cost visibility as they invest in the third-party managed mobility service. Some vendors need more expertise to estimate the total costs or more capacity or resources to manually add individual parameters to arrive at an estimated cost. Such challenges add a drawback to the market. However, even if the costs are estimated, other challenges arise during reconciling actual cost assignments versus estimated and understanding the variances. Therefore, this increases investments for customers to use another set of third-party cost estimation applications to invest in managed mobility services. This indicates the need for more control over cost visibility.
Another major challenge is the lack of scalability options for various small and medium enterprises as the hardware owned by them is outdated, and the need for new investments to introduce a whole new infrastructure to replace the old hardware is not feasible and eliminates the adoption of managed mobility services. However, mobile technology is also transforming in a short period, and the lack of capability for the vendors to upgrade mobility services for the new mobile configuration and specifications slows down the digital transformation of its customers and shows a lack of control over operational efficiencies. Such factors further threaten the market studied.
Global Managed Mobility Services Market Opportunities
Cybersecurity Compliance Requirements by the State and Local Governments and Regulatory Bodies
Going forward, the managed service providers market will likely be highly competitive, considering the rate of mergers and acquisitions. Furthermore, most of the MSPs may realize the need to adopt MSSP business models, which require expertise in cybersecurity in addition to IT management. Cybersecurity compliance requirements mandated by the state and local governments and regulatory bodies also drive the need for MSPs to be security-focused. Additionally, as dedicated, on-premise hardware for computing purposes may decrease, and most of the functionality may become cloud-based, privacy and security issues may become more intense.
This is also allowing employees to use their devices for office work. According to an article by Scalefusion.com, 31% of businesses have permitted their employees to use their phones and laptops for work. Moreover, about 61% of businesses expect their employees to be available from home, despite not owning a corporate-issued device. Owing to such development trends, managed mobility service providers are gradually transforming into an "MSPv(IT) and MSP (Security)" business model. These evolutionary developments can be attributed to the fact that in a bid to avoid fading away into IT obscurity, the market is rearranging its structural ecosystem. This is expected to further drive the managed mobility services market in the coming years.
Regional Analysis
By region, the global managed mobility services market is segmented into North America, Europe, Asia Pacific, and LAMEA
North America occupies the largest market share and is expected to register a CAGR of 22.6% during the forecast period. By 2023, there will be an average of 3.6 devices and connections per person worldwide, predicts Cisco's Annual Internet Report. By 2023, the United States will continue to lead the list of nations with the greatest average of devices and connections per capita, with an average of 13.6 devices and connections, followed by South Korea and Japan. The spread of 5G in the nation supports future demand for IoT devices. Significant advancements have resulted throughout time due to national mobile providers like AT&T, Sprint, T-Mobile, and Verizon concentrating on deploying 5G. By early 2023, 5G will have 100 million mobile connections, and by 2025, it will have more than 190 million connections, making it the most widely used mobile network technology in the nation. The COVID-19 pandemic is predicted to promote cloud usage in the United States, leading to increased business digital transformation and the deployment of managed mobility solutions.
Europe is the second largest region. It is estimated to register a CAGR of 23.3%. Germany holds a significant market share in the studied market. It is expected to see increased adoption of managed mobility services owing to the significant presence of industries that are operating remotely coupled with favorable government initiatives. The strategies introduced by the German government are the major factors propelling the market for managed mobility services. For instance, the digital strategy 2025, published by the Federal Ministry for Economic and Energy, and the mobile communication strategy focusing on the supply of voice and data services are creating a massive demand for VOIP and other communication services. Such drastic measures will create scope for market vendors to offer mobile device management solutions.
Asia Pacific is the third largest region. Digital transformation has become a top priority in the country, and things are moving quickly as more and more companies put in place formal plans to help them. The managed services providers in the country significantly focus on reducing security risks and optimizing operations for the end users by providing the latest technologies. Moreover, engaging outsourced services for a company's IT resources can be an engaging path toward substantial budget savings, more resilient connectivity, and more secure application and device uptime and performance. The managed services in the country are majorly being offered by the telecommunication companies operating in the country. Further, the conventional industries operating in the country are increasingly being supported by governmental policies to embrace digital transformation and enhance their adoption of IT technologies. Hence, their demand for mobility services is also rising, driving market growth.
Segmental Analysis
The global managed mobility services market is segmented by function, deployment, end-user industry, and region.
By function, the global market is segmented into mobile device management, mobile application management, mobile security, and other functions. The mobile device management segment occupied the largest market share and is expected to register a CAGR of 23.5% during the forecast period. In the past few years, mobile devices have become ubiquitous for enterprise usage. Businesses around the globe and their workforces significantly rely on mobile devices, like smartphones, tablets, and laptops, for multiple jobs. Also, as working remotely has become crucial, owing to the onset of the COVID-19 pandemic, mobile devices have become an integral part of several organizations, making them highly vital to productivity and efficiency. MDM has been a primarily adopted solution for organizations that want to deliver secure mobile solutions to a workforce that demands to bring their own devices. The benefits of MDM software are significant and include better security, increased efficiency, lower costs, and control over all mobile devices. An MDM tool gives organizations visibility over their devices, as the software pulls valuable data from these managed devices. All such factors drive segment growth.
By deployment, the global market is segmented into cloud and on-premise. The on-premise segment occupies the largest market share and is expected to register a CAGR of 20.5% during the forecast period. Mobile Device Management has historically been a solution that has been installed on-premise. Companies that installed solutions on-premise devices were typically connected to a LAN connection via corporate WiFi or through cradles and USB connections. Over the years, devices have gone from Personal Digital Assistants (PDAs) to Mobile Devices and Smartphones. PDAs were considered mobile-only because data was stored on the device and could be taken with the user but connecting to the enterprise often required some time and tethering. The devices were not considered to be connecting through the Cloud, so managing the devices through the Cloud was not typically considered. It figured devices connecting on-premise and managing devices through on-premise.
By end-user industry, the global market is segmented into IT and telecom, BFSI, manufacturing, retail, healthcare, education, and other end-user industries. The IT and telecom segment occupies the largest market share and is expected to register a CAGR of 23.1% during the forecast period. The IT and telecom sector is a significant market for managed services. The enterprise mobility trend has developed over time due to the rapid adoption of numerous technologies. Today's businesses generally concentrate on their core skills and business objectives, which encourages the use of and adoption of bring-your-own-device policies (BYOD). This increases the requirement for streamlined mobility services, likely to boost the demand for managing these mobile devices.
Top Key Players
Hewlett-Packard
Vodafone Group PLC
Microsoft Corporation
Tech Mahindra
AT&T Inc.
Fujitsu Ltd
Kyndryl (IBM Corporation)
Wipro Ltd
Orange SA
Telefónica SA
Samsung Electronics Co. Ltd.
Others
