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Technavio’s research analyst predicts the global IT spending by online service and application market to grow at a CAGR of around 20% during the forecast period. The increased adoption of in-app payment systems and integration with digital wallets has been driving the growth of this market. In-app payment systems through digital wallets have replaced cash payment systems for cab riders as they allow convenient payment modes for customers. The increase in the user base for mobile applications has significantly changed the payment system for cab aggregators. Money is preloaded in the digital wallets, and the service charge is automatically deducted at the destination point without the need for the two-way authentication process. Uber and Ola are the main cab aggregators providing digital payment facilities to their customers by partnering with third-party service providers. PayPal, Paytm, and PayU are some of the major players that provide payment service through digital wallets for online transactions.
The growing focus on information gathering and information dissemination by organizations is also aiding the market growth. Start-ups and mid-sized companies are now focused on targeting the right segment with IT-enabled marketing tools. Enterprises are now aligning marketing channels with organizational business strategy. Marketing automation software allows companies to generate highly qualified leads that are ready for sales engagement. It provides the framework for companies to target, build, execute, and measure the success of marketing campaigns by identifying buyer-readiness conditions to generate leads. Social-based customer engagement applications also help companies derive business insights as well as prospective demands, benefiting both the company and customers.
Many IT companies see a high potential in the online services and application market. Security is one of the major concerns in online marketing. Companies in this space are investing heavily in building secured solutions to enhance their customer base. Security solutions offered by IT service providers encrypt the customer information and are more focused on handling critical information stored on customer’s credit cards or debit cards to prevent security breaches.
The leading vendors in the market are -
Other prominent vendors in the market include Ciklum, Citrus Pay, CRS Technologies, Demandware, Dolphin Dynamics, eBay-GSI Commerce, eCare Technology Labs, Expert Travel Services, FDS, HubSpot, Hybris, Infosys, JDA Software, Lemax, MapmyIndia, Microsystem, mTrip, NetSuits, PayU, PcVoyages 2000, Qtech Software, Salesforce, Technoheaven Consultancy, TourSys Solutions, Tramada Systems, TravelCarma, Trip Solutions, Web Booking Expert, and Zaakpay.
The IT services segment dominated the market accounting for 51% of the market during 2015. IT service spending includes software testing, database maintenance, IT support, payment services, and cloud services. Online service providers require IT to deliver on-demand services with speed, flexibility, and scalability. Also, online operators are focused on system integration and application development solutions to improve the reliability of their app-based online booking, ordering, and delivery systems.
During 2015, the e-grocers segment led the market with around 38% share. Numerous companies in this segment have introduced the concept of same-day delivery of products, which requires IT practices to streamline their supply and distribution chain as well as acquire and retain new customers. Online grocers such as Grofers, BigBasket, Tesco, and FreshDirect are increasingly investing in the integration of payment gateways with mobile platforms to give quick access to consumers. Such integrations will positively influence e-grocers' spending on technology during the forecast period.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Market segmentation by products
PART 06: Market segmentation by end-user
PART 07: Segmentation by geography
PART 08: Market drivers
PART 09: Impact of drivers
PART 10: Market challenges
PART 11: Impact of drivers and challenges
PART 12: Market trends
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
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