European mobile spend to hit £1.8bn, says Datamonitor

Spending by European businesses on mobile systems is rising fast and will hit £1.8bn by 2006, Datamonitor has predicted.

Spending by European businesses on mobile systems is rising fast and will hit £1.8bn by 2006, Datamonitor has predicted.

The research firm said spending on mobile business systems, which was an estimated £290m in 2002, will rise sharply over the next few years. The main sectors spending money on mobile systems include financial services, telecoms and utilities, but the fastest growth rate is being seen in the healthcare sector.

Healthcare organisations across Europe are investing heavily in mobile data systems. Their spending on mobile applications is set to rise by 93% a year and will be worth £185m by 2006, Datamonitor said.

Nick Greenway, mobility analyst at Datamonitor, said the widespread adoption of mobile business systems could bring big changes to the ways core vertical markets, including public services, the car industry, logistics and the travel and leisure industries, do business.

As mobile, web-based service technologies emerge, sub-sectors of specific vertical markets will be able to link up and change the way they operate, Greenway said.

In the transport industry, for instance, linking up a whole chain of now-separate operations could increase efficiency in the way parts are managed and delivered, from the initial supply of car components, car assembly, car sales and after-sales support, through to service and repair and roadside assistance, he said.

These changes will require mobile applications suppliers to decide whether they want to remain specialist suppliers in small niche markets or become more general, high-volume suppliers, Greenway added. Large software suppliers should partner with specialist suppliers, rather than wasting money to trying to develop their own, end-to-end products for the mobile data market.

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