Tech Companies Are Betting This One Thing Will Drive Future Revenue Growth

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Tech Companies Are Betting This One Thing Will Drive Future Revenue Growth

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There are lots of new ideas influencing the technology sector right now.

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Like the Internet of Things, tech security, data analysis, the cloud, and so forth.

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And most of these trends are already having a big influence on the tech sector.

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But according to a recent KPMG survey, none of these things tops tech companies’ list as the main revenue growth driver.

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So what is the one thing tech companies are banking on?

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About 27% of tech executives said mobile apps and devices will be their biggest revenue growth drivers over the next two years. Source: KPMG.

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KPMG says companies are using mobile to increase productivity, improve innovation and gain greater customer loyalty.

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But despite mobile’s continued dominance, the other tech trends may soon take its place.

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“The wide dispersion of technologies that are drivers of revenue growth highlights the continued emergence of new markets that did not exist just a few years ago.” — KPMG

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Here’s a quick look at how all the tech segments breakdown:

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Source: Statista.

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And where is all this mobile and other growth expected to take place?

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Most tech companies say that the U.S. will be their largest revenue market, followed by Canada.

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Interestingly, tech companies are considering formerly high-growth areas like China a bit riskier now…

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Because of increased local competition, slowing economic conditions, and currency volatility.

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That’s very important news for Apple and other major players in China.

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Especially considering that China is the world’s largest smartphone market and Apple’s second-largest revenue market.

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In fiscal Q3 2015, Apple earned $13.2 billion in revenue from the greater China region, which includes mainland China, Taiwan and Hong Kong. Source: Apple.

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Despite tech companies’ current apprehension about growth in China, the country’s importance in the tech sector likely won’t go away any time soon.

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And, apparently, neither is mobile’s.

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