M-commerce picks up steam in Australia

Eden Estopace
16 Sep 2014
00:00
News
Daily News

Mobile commerce is getting big in Australia. Research firm Frost & Sullivan estimates that 59% of all Australian consumers aged 15-65 have made at least one mobile commerce purchase in the last 12 months.

This year, the total expenditure via mobile devices is on track to reach $22 billion. Australians are increasingly using tablets or smartphones to purchase goods, content and services, including physical goods, travel, insurance, cinema tickets, music, news and e-books.

In 2014, services, such as travel and financial services, account for the largest category of expenditure at $13 billion, followed by purchase of physical goods at around $6 billion.

Expenditure on entertainment is estimated at $1.2 billion and media purchases, such as tickets, e-books and other digital content, are estimated at $1.6 billion.

Australia’s mobile commerce market is predicted to grow strongly at a compound annual growth rate (CAGR) of 19%, increasing from $22 billion in 2014 to $54 billion in 2019.

“Entertainment is envisaged to be the fastest growing segment with a CAGR of 26%, with thrust from the strong uptake of paid music, movies and TV shows and games,” said Phil Harpur, Senior Research Manager, Australia & New Zealand ICT Practice.

"Online news, online magazines and e-books will also display very high growth as a significant proportion of consumers move to view written content on mobile devices. The second largest growth segment, physical goods is expected to experience 23% growth."

Frost & Sullivan expects that expenditure will be propelled more by greater willingness of consumers to transact on mobile devices than by further increases in mobile device penetration, as usage of smartphones and tablets is already approaching saturation.

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