WELLESLEY, MA--(Marketwired - July 12, 2016) - The global mobile wallet market has exploded in the past few years, an exponential growth anticipated to continue during the forecast period. BCC Research reveals in its new report that rising awareness of the mobile wallet and its applications, higher sales of smart phones and increasing security are among the key market drivers.
Mobile wallet payments are processed through a mobile wallet account. The key objective of the mobile wallet is to facilitate a user with an electronic wallet where all the contents of a real wallet such as cash and cards are electronically available at anytime and anywhere. The main function of mobile wallet is to help customers in making mobile payments, which includes storage of payment credentials (on the device or on the cloud), and consequently making them available at the point of sale (POS), or when needed.
The global mobile wallet market, which totaled $46.8 billion in 2014, is projected to reach $113.5 billion and $635 billion by 2015 and 2020, respectively, increasing at a five-year compound annual growth rate (CAGR) of 41.1%. The North American market should grow from $34 billion in 2015 to $158.8 billion in 2020, demonstrating a five-year CAGR of 36.1%. The (EMEA) market should total $260.3 billion in 2020, up from $45.4 billion in 2015, on a five-year CAGR of 41.8%. The Asia-Pacific market, the fastest-growing segment with a five-year CAGR of 45.9%, should total $165.1 billion in 2020.
In terms of mode, remote payment dominated the global mobile wallet market in 2014 with a 78% share, followed by near-field communication (NFC) with 22.0%. In 2014, mobile commerce applications dominated the market with a 60% share, followed by money transfer with 11%, mobile ticketing with 10%, mobile coupons with 7.5%, micropayments with 5%, and other with 6.5% share.
The introduction of mobile payment technologies by Apple, Google and others, along with the consolidation of banking, service providers, credit cards and retail initiatives have spurred much greater market growth in a shorter time period than previously forecast in the 2013 BCC Research report on this industry.
However, the impact is in the short term, while in long term the market will actually take a bit longer to reach the 2017 total of $665 billion mentioned in the 2013 report. This forecast projects that the total market will reach $635 billion in 2020, for these reasons, the CAGRs also differ.
"The 2013 view represents a high growth of 142% CAGR from 2011 through 2017, showing a large market expanding from a very small base. While with the new product introductions and other market dynamics, the market actually will grow somewhat more gradually at 41.1% CAGR, with an already established market of $113.5 billion in 2015," says BCC Research analyst Natraj Pandal. "The introduction of innovative mobile wallet products is becoming one of the key trends and is expected to drive the growth of the global market over the forecast period."
Mobile Wallet and Payment Technologies: Global Markets (IFT070B) examines the industry's supporting equipment and technologies, including RFID, smartphones, and 4G technology, along with a review of its legislation and regulatory framework. Analyses of global market drivers and trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2020 also are provided.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. Founded in 1971, BCC Research is a unit of Eli Global, LLC. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.