CCID 2015 Mobile Internet Development White Paper
In a while paper released early in the year, CCID, one of the nation’s top think tanks for the Chinese government estimates that the 2014 market size of mobile Internet in china is RMB213.49B (~$34B), a huge jump from 2011’s 30B RMB. By the end of 2014, the nation’s total mobile Internet users reached 5570M and the number exceeded PC users in June 2014 based on CNNIC data. It also predicts that the approximate size of China’s mobile Internet market could reach RMB377.6B (~$60B) in 2015, and potentially grow to RMB1146.65 (~182B) in 2018.
- Mobile Internet Market Size Exceeds RMB200B
|Market Size (RMB in Billion)||30.12||55.52||99.07||213.48|
Source: iResearch, 2015.1
In 2014, the mobile internet market kept flourishing and the total market size broke the two hundred billion mark, which was more than 7 times the market size in 2011. On the one hand, the popularization and application of smart phone and other mobile intelligent devices established a solid hardware foundation for the market growth. On the other hand, the improvement of mobile applications such as finance, travel & leisure, and online education, has further driven the rapid increase.
- Mobile Internet Users Over-numbers PC Internet Users
|Mobile Internet User (Million)||50.4||117.6||233.44||302.74||355.58||419.97||500.06||556.78|
|% of Total Internet Users||24%||39.5%||60.8%||66.2%||69.3%||74.5%||81%||85.8%|
Source: CNNIC, 2015.1
By the end of 2014, there is a total of 557M mobile Internet users, accounting for over 85.8% of total Internet users and exceeds the total number of PC Internet users for the first time in the history. Among them, about 70% are those who were born in the 90s and 24% were the 80s generation.
- Mobile Commerce As the Most Valuable Application in China
2014 sees six major mobile applications, including travel/transportation, mobile commerce, social networks, instant messaging, gaming, & tools. The six application areas created USD230B revenue, accounting for about 89% of total mobile Internet market value. In particular, taxi/car rental, mobile finance/banking, industrial Internet applications, and online education have been the hottest mobile applications. 68 Internet companies globally reached the revenue size of USD1B and their business spread across a variety of areas such as gaming, instant messaging, transportation, social networking, navigation, & mobile commerce. In China, mobile commerce remains as the most valuable application among all, accounting for over half of the total mobile Internet revenue.
Source: Digi-Capital, 2015.2
- 2015 Mobile Internet Market Growth Prospecta.Global mobile internet market size will reach USD 400 billion2015 global mobile internet market size is estimated to reach USD 400 billion dollars, USD100 billion more than the income of 2014. Based on estimates by Digi-Capital, the annual revenue of mobile internet industry will reach USD700 billion in 2017. Mobile business, mobile advertisement, in-app purchase, and application-as-service business model will be the most important growth areas. The total revenue will include USD516 billion from mobile commerce, 74 billion from personal mobile applications, 53 billion from enterprise mobile applications, 42 billion from mobile advertisements and 11 billion from wearable devices.b. China mobile internet market close to RMB 400 billion (~USD 60B)
The development of China mobile internet will remain vigorous and active. It is predicted that, in 2015, the growth rate will remain at ~ 77% and the total market size will reach RMB 377.6 billion, RMB160 billion more than 2014.
|Market Size (RMB in Billion)||213.48||377.6||596.63||873.41||1146.65|
Source: iResearch, 2015.1
c. Top development trends
i) Further expansion of consumer Internet & transition to the industrial Internet phase
In the recent ten years, the development of mobile commerce enabled by Chinese companies like Taobao has exceeded the growth of major US eCommerce platforms and is now in the process of transitioning from consumer Internet to the industrial Internet phase. According to McKinsey’s prediction, from 2013 to 2025, mobile Internet market revenue could contribute to about 7-22% of China’s total GDP. The output of six major industries, including consumer electronics, automobile, chemical industry, financial service, real estate and medical/healthcare, will account for over 1/4 of China’s total GDP, and mobile internet will play a critical role in integrating the six industries through communication/connection, digitization and intelligence.
ii) Cloud computing becomes one of the most important driving forces
Cloud computing becomes one of the most important drivers for the development of mobile internet. In 2015, Internet giants will keep focusing on public cloud and business cloud, and on applying virtualization technologies to smartphones & tablets.
iii) Internet of Things will facilitate the explosion of intelligent hardware market
The size of global intelligent hardware market is continuously extending. It is predicted that in 2015, the global shipment of smart phones could reach 1.3 billion, phablet (with 5.5-7 inch screen size) 320M, and the total shipment of tablet PC will be about 233M. The release of Apple Watch could also give a further push to the wearable device market
iv) The emergence of BYOD in the enterprise market
With the development of enterprise-level applications, BYOD (Bring Your Own Device) could emerge as another growth area. More and more companies plan to increase their investment on SaaS and mobile cloud office will become one of the top priorities.
v) The increasing value of mobile Internet and its social functions
Mobile internet revenue is estimated to accounts for 3.7% of GDP currently. It is expected that in 2015, mobile internet will participate further in the economic activity, and its social value will continue to improve.
For more information about the report, please check out the original report at http://www.ccidthinktank.com/uploads/soft/150421/INTERNET.pdf