84% of execs expect to meet mobile revenue targets, study says

By Louis Columbus, Forbes contributor

  • Twenty-seven percent predict mobile will be the biggest revenue driver for their company in the next 24 months.
  • Twenty-two percent are predicting healthcare IT-related devices, software and services will drive the majority of their revenue in the next 24 months.
  • Nineteen percent expect data and analytics will be the biggest contributor to revenue growth in the next 24 months.

These and many other insights are from the KPMG Technology Industry Outlook Survey, A Tale of Two Disruptions: Tech Innovation and Cybersecurity (free, no opt-in, PDF). KPMG completed surveys with 111 tech industry leaders in the United States during March and April 2015.

Respondents are from a mix of public and private companies, ranging in size from $100 million to more than $1 billion. Forty-six percent of the respondents are director-level, 23 percent are vice presidents, and 32 percent are C-level executives. For additional details on the methodology please see page 4 of the study. Here are some additional findings:

  • Eighty-six percent of tech industry leaders believe the United States will provide the highest percentage of revenue growth over the next twenty four months for their products and services globally. Forty-four percent predict Canada will drive revenue growth for tech companies in the next two years. Conversely, tech leaders predict revenue declines in China, India and the U.K. compared to 2014 levels. Tech executives predict the U.S. is a leading market in the adoption of data and analytics, cloud and mobility technologies.
  • Eighty percent predict their company’s revenue will increase in 2015, with 39 percent predicting an increase of 6 percent or more. Forty-two percent are predicting 1-5 percent growth, with 25 percent predicting an increase of between 6 percent and 10 percent. Just 8 percent are predicting a reduction in revenue this year.
  • Mobile, healthcare IT devices and applications, and data and analytics are predicted to be the biggest revenue drivers for tech businesses in 2015. Twenty-seven percent of tech executives predict mobile will be the leading revenue driver for their businesses in 2015, followed by healthcare IT devices and applications (22 percent), and data and analytics (19 percent).  The following graphic compares 2015 with prior years’ survey results showing the shift in tech leaders’ priorities over time.
  • Eighty-four percent of tech leaders say their mobile revenue forecasts for the last year met or exceeded expectations. Of these respondents, 51 percent predict that mobile-related revenues will end the year above forecast, and 33 percent say their revenue forecasts will be met. Just 7 percent are predicting their mobile revenue forecasts will not be met. The following graphic compares 2015 and 2014.
  • Access to new customers/users (50 percent) and access to new technology and products (37 percent) are the two most common drivers of merger and acquisition (M&A) activity in tech today.  Acquiring and creating new distribution networks (30 percent), control over strategic assets to defined against competition (26 percent) and labor cost pressures (25 percent) are the other leading drivers of M&A activity in tech this year.
  • Eighty-one percent of tech executives expect the U.S. will see employment growth in tech between 2014 and 2015.  Tech execs also believe headcount will increase in Canada (43 percent), the United Kingdom (32 percent) and Mexico (27 percent).
  • Preventative care (52 percent), patient monitoring systems (36 percent) and medical imaging and scanning (MRIs, ultrasound, etc.) (33 percent) are the top three areas where technology innovation will improve healthcare. Twenty-two percent of tech leaders believe that healthcare IT, software and services will be the most significant revenue driver for their businesses in the next 24 months. Internet of Things (IoT) sensors and technology advances will create entirely new business models and revenue opportunities in preventative care and patient monitoring systems as well.
  • Security and risk management are the most common challenges tech execs face in getting cloud, IoT and mobile technologies adopted in their enterprises. Fifty-eight percent say security concerns are slowing down their adoption of cloud computing. Forty-three percent mention risk management and security (42 percent) as inhibitors to getting IoT projects off the ground. Fifty-three percent also cite security as a challenge in getting mobile technologies adopted enterprise-wide.
  • Ninety-one percent of tech execs predict research and development (R&D) spending will remain the same or increase in the next twelve months. Of these, 64 percent expect to increase their investment in R&D in the next 12 months.

This article was written by Louis Columbus from Forbes and was legally licensed through the NewsCred publisher network.

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