Enterprises are increasingly focused on the mobile environment, with many verticals dedicating a vast majority of their IT spending on ensuring a more complete environment for employees and customers. In fact, Gartner last year predicted that the number of mobile customer retention management applications available through app stores would grow from 200 in 2012, to more than 1,200 in 2014.
This focus was highlighted by a new Ovum report that claims customer engagement systems will be the fastest growing enterprise application through 2018, with e-commerce and CRM solutions expected to post 10% compound annual growth rates between 2013 and 2018. The report noted that enterprise applications that support such services as product lifecycle management will see a more modest 8% CAGR.
Ovum’s forecast predicts that manufacturing and healthcare verticals will see the most spending by 2018, “driven largely by the need to innovate.” Healthcare investments are expected to surge more than $10 billion to $22.9 billion, with manufacturing investment set to grow from $14.6 billion in 2012 to $23.9 billion in 2018.
By region, Ovum predicts China, India, Brazil, and the Middle East and Africa will post between 13% and 16% CAGRs, with the more developed markets in Europe and the U.S. showing growth of between 7% and 8%.
“Globalization and disruptive technologies – particularly social networks, cloud computing and mobile – have had a massive impact, raising customer, consumer, and citizen expectations and giving them greater power,” explained Jeremy Cox, principal analyst for customer engagement at Ovum. “This, plus a strong focus on cost reduction through IT modernization and fierce competition for customers, is leading organizations to invest in their ability to adapt quickly enough to remain relevant to consumers.”
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Ovum: CEM to pace enterprise application spend
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