Global mobile commerce (m-commerce) market doubled to $65bn in 2011 and with the rapid adoption of smartphones the market is expected to account 24.4% of overall e-commerce revenue by 2017, according to ABI Research.
The growth is expected to be triggered by smartphone proliferation in developed and developing market as well as retail market where traditional retailers are adopting multi-channel strategies to beat off competition from Internet based retailers.
M-commerce market is currently account small percentage of the overall e-commerce market but the market is going at a faster rate, the report revealed.
ABI Research Practice director John Devlin said m-commerce is not yet mass market, but it is delivering remarkable growth in tough economic conditions.
"There remain questions, as how to best realize the value and ROI of m-commerce but innovative retailers with the resources to invest in the development of their mobile portfolio have clearly identified this as the way forward," Delvin said.
Growth of smartphones has allowed consumers to use their mobile devices to make their purchase of physical and digital goods and to choose from a range of options as to how they pay for their purchase.
The introduction of HTML5, visual search, NFC, augmented reality, full Internet browsing, and (in-door) location is expected to play a significant role in growth of m-commerce.
"Mobile is now transitioning from what was initially viewed by many as a retail experiment to a viable component of a full-blown multi-channel offering," Devlin said.
"Consumer awareness has been boosted by the "Groupon effect" and now everyone wants a bargain. This is further exacerbated by the need in the retail sector to a) differentiate from the competition, b) be seen to be offering value, and c) an enhanced need to increase consumer engagement and interaction. Mobile helps to fulfill all of these criteria."