Technology has been a driven force of worlds’ economic development since the evolution of smartphones. Initially, they were designed for the use of business purpose, transformed soon into smaller devices for local consumers.
Industry giants like Apple and Blackberry launched phones for business executives that followed the change to the way everyone communicates now in not only business but in our everyday lives. People download and delete apps on their iPhone in a span of a minute every day. This shows their acceptability and comfort ability to the technology.
GSMA published a report on the mobile economy contribution, which was around $2.4 trillion in 2013, representing 3.6% of the gross international economy. This includes 10 million new jobs and $336 billion of public funding in the US alone. Also, the mobile economy is expected to grow aggressively as much as by 5% by 2020 to the global GDP.
Launch of mobile communication services has contributed significantly to economic benefits globally. 3G penetrations per 100 consumers have increased by over 60% in Europe and 90% in the US since 2005. The growth is solely accelerated by 3G capabilities and smartphone apps that have grown more exponentially in recent years.
Smartphones are an essential part of our mobile device economy and contributing a considerable amount in the world economy is a clear indication of the fact that most population has them.
The Revolution of Growth
CISCO systems found that mobile data usage has increased by 100% in the span of five years (2005 to 2010). In the US the growth is 400%, Western Europe 350% while in south Asian regions there was a growth of 300%.
An estimated number of adults own smartphones in the US is 64%, while a total of 90% have any type of cell phone. Moreover, with the continuous drop in prices, the smartphone purchase increased inevitably.
Smartphone penetrations have also grown 200% in the last five years globally. World’s 20% population used smartphones in 2010 while it increased up to 37% in 2014. 2008 was the year when Apple launched its first iPhone, in this years, the number goes 47% from 12% till 2014.
“Our Mobile devices have become our better half when it comes to deal with every digital issue” Says- Martha Jonas- Consulting Executive, Australian Masters.
People may blame the smartphone addiction for the loss of productivity. However, mobile devices have a significant impact on the growth of the global economy. Still, there is a crucial need to address the social challenges of using smartphones in many parts of the world.
After the tremendous success of 3G and 4G, 5G will soon to be upon us to bring the promise of hosting spectacular features into existence. The boundaries of mobile phones and digital adoption are blending rapidly to create a new ecosystem of opportunities.
Mobile Economy Report 2019
UN’s sustainable development goals (SDG) runs a report on “Mobile Economy 2019” which shows that the economic value that the global mobile ecosystem generated in 2019 and was around $1.1 trillion. Along with 4.6% of the global GDP is generated by mobile technologies and services alone in 2018.
Furthermore, an estimate of 4.8% of the global GDP is expected to be generated by mobile technologies by 2023. The more positive aspect of the data is that comprehensive technology companies have employed 14mn people. While, 17mn new jobs have been generated through mobile-related industries as well.
The increasing effect of mobile subscriptions across 10 Middle Eastern countries is also positive on GDP growth for the decade (2010 – 2020). The range of growth is between 3% and 24% in the Asia Pacific region as well.
Below are some charts that show the emerging trends of convincing technology and its impact on the GDP.
There is a critical need of a global policy structure given the penetration of digital reach. Keeping in mind the risk of race in global financial markets, the cooperation should include the regulation of personal data that may seem hard to in a region-specific way. Also, considering the nature of the internet in the international market as an intangible asset, the amorphous location can muddle digital taxation.
The importance of the mobile ecosystem and its contribution cannot be denied seeing the above statistics. The stakeholders with their broad memberships can provide a platform to revolutionize the digital policies effectively and suggest the solutions along with guidelines to keep the positive impact going and coping up with the misuse challenges.
Why it is so important?
The technology has proved itself to be adaptable towards the changing circumstances; tailored potential advises and integrated personalized experiences across the boundaries worldwide. Also, addressing the issues of policies and responding swiftly to communication needs.
There is a massive acknowledgment of digital revolution still there is a significant need for acceptance among ignored underdeveloped locations that may play a dominant role in the industry. Similarly, to maximize the beneficial aspects and to minimize the disruptions of taxations and digital data, companies should show a willingness to corporate beyond boundaries to improve the wellbeing of existing and upcoming technologies. All this has to be done without diminishing the energetic enthusiasm of the digital era.
Smartphones and digital mobile technologies have enabled new applications that provide users with opportunities to generate decent revenue. The access of data to increase the communication channels facilitates the coordinating results of potential gains. The technology has also enabled the immediate response to prevent crisis and destructions.
The effect is massive in developing countries as compared to developed countries. The fact is backed up by the data above with the significant high growth of mobile device purchases and subscriptions. The technology helps to fill the gap and serves as a bridge between poor infrastructures in those regions.
Hence, the impact of the fastest-growing mobile technology is significantly positive on the global economy. However, there is still the need to keep an eye on the data exchange and developing polices to channelize the functioning and subscriptions. Moreover, there is likely to be more growth expected in forthcoming years with the increase in new launches and excellent infrastructure of communication mediums.
Stella Lincoln is a single mother and a professional business writer. She is working as a part-time Academic Advisor at AcademistHelp. She loves to remain in touch with the latest corporate trends and likes to spend time with her pet, Ellie.