Opportunities and Challenges for the Mobile Sector in 2025
Posted by Elena del Valle on February 12, 2025
By Nicholas Rossman
Director
Anti-Fraud Programme
Mobile Ecosystem Forum (MEF)
Nicholas Rossman, director, Anti-Fraud Programme, Mobile Ecosystem Forum
Photo: Nicholas Rossman
Staying ahead of the curve is important in any business, but it is particularly crucial in the mobile sector. Here are ten of the key trends likely to shape the industry in 2025.
Artificial Intelligence and Machine Learning (AI/ML)
Impact: AI/ML is expected to have a profound impact on the mobile industry, leading to more personalised and intelligent app experiences. AI-powered smartphones with dedicated AI coprocessors that can run large language models completely offline are predicted to arrive. AI and ML will also transform customer service through AI-powered chatbots and virtual assistants.
Reasoning: The increasing availability of big data and advancements in AI/ML algorithms are driving this trend. AI/ML can help to improve user experience, increase engagement, and drive revenue.
Challenges: Concerns around data privacy and the need for ethical AI development are key challenges.
Augmented Reality (AR)
Impact: Augmented reality (AR) is expected to become more mainstream, with AR shopping experiences becoming the norm. The global AR market is expected to grow at a compound annual growth rate of 33.5 percent from 2024 to 2025.
Reasoning: Advancements in mobile device hardware and the availability of new wearable AR headsets are driving this trend.
Challenges: High development costs, technical limitations, and user adoption remain challenges.
Blockchain Technology
Impact: Blockchain is expected to have a significant impact on the mobile industry, leading to more secure and transparent applications. By 2025, the blockchain industry is projected to reach a worldwide market size of $42.26 billion, according to Top 10 Blockchain Trends To Look Forward In 2025 – IdeaUsher (accessed on January 17, 2025, ideausher.com/blog/top-10-blockchain-trends-in-2025/*). Blockchain also has the potential to improve transparency and traceability in supply chain management. By providing an immutable record of transactions, blockchain can enhance efficiency and reduce fraud in supply chains.
Reasoning: The increasing need for data security and the growing popularity of cryptocurrencies are driving this trend.
Challenges: Scalability, energy consumption, and regulation remain challenges for blockchain adoption.
Low-Code/No-Code Development
Impact: Low-code/no-code platforms, which enable faster app development with minimal coding skills, making app development more accessible and cost-effective, will be used to develop 70 percent of businesses’ applications.
Reasoning: The increasing demand for rapid prototyping and deployment is driving this trend.
Challenges: Limited customisation, scalability issues, and security concerns are challenges for low-code/no-code development.
Cloud-Driven Mobile Apps
Impact: Cloud-driven mobile apps are expected to become more prevalent, offering enhanced functionality and seamless user experiences.
Reasoning: The increasing demand for scalable and cost-effective mobile app solutions is driving this trend.
Challenges: Security concerns, vendor lock-in, and complexity are challenges for cloud-driven mobile apps.
Extended Reality (XR)
Impact: Extended reality (XR), which encompasses Augmented Reality, Virtual Reality, and Mixed Reality, is expected to become more integrated into mobile apps, offering immersive experiences and personalised interactions. XR also has the potential to revolutionise learning and collaboration by creating immersive learning environments and facilitating remote teamwork.
Reasoning: Advancements in XR technology and growing consumer interest are driving this trend.
Challenges: Technical limitations, user experience concerns, and content creation complexity are challenges for XR adoption.
On-Demand Apps
Impact: On-demand apps are expected to continue to grow in popularity, expanding into new sectors and offering more diverse services. Consumer spending on apps is projected to surpass $270 billion in 2025.
Reasoning: The increasing demand for convenience and personalised services is driving this trend.
Challenges: Security concerns, network connectivity issues, and competition are challenges for on-demand apps. Ensuring app visibility in a crowded market and managing finance and funding are also key challenges.
Motion Design in Mobile Apps
Impact: Motion design, the use of animations, transitions, and micro-interactions to improve usability and visual appeal, is expected to become more prevalent in mobile apps, enhancing user experience and brand perception.
Reasoning: The increasing demand for engaging and user-friendly app experiences is driving this trend.
Challenges: Ensuring smooth performance and accessibility across devices are challenges for motion design implementation.
Mobile IoT
Impact: Mobile Internet of Things (IoT) is expected to have a significant impact on various industries, including healthcare, manufacturing, and smart cities. The total number of connected IoT devices worldwide is expected to reach 75.44 billion in 2025.
Reasoning: The increasing availability of affordable sensors and the growth of 5G networks are driving this trend.
Challenges: Security concerns, battery life limitations, and standardisation issues are challenges for Mobile IoT adoption.
Touchless User Interface (UI)
Impact: Touchless User Interface (UI), which enables users to interact with devices using voice commands or gestures, is expected to become more prevalent in mobile devices, improving accessibility and user experience. The touchless sensing market is projected to reach $15.3 billion in 2025.
Reasoning: The COVID-19 pandemic accelerated the adoption of touchless technologies, and this trend is expected to continue.
Challenges: Technical limitations, user adoption, and privacy concerns are challenges for touchless UI implementation.
Conclusion
According to Statista** global information technology spending on communication services is $1.55 trillion (https://www.statista.com/markets/418/topic/481/telecommunications/#overview). This figure includes mobile phones, tablets, wearables plus the infrastructure to support them. The mobile industry is poised for significant growth in the coming years, driven by the convergence of these top 10 trends.
*According to the company website Idea Usher is an app development company headquartered in Mohali, India, with offices in the United States, the United Arab Emirates, and Canada.
**According to the Statista website the Germany based company is a “global data and business intelligence platform with an extensive collection of statistics, reports, and insights on over 80,000 topics from 22,500 sources in 170 industries.”
Nicholas Rossman is the Anti-Fraud Programme Director at Mobile Ecosystem Forum (MEF) a global trade body established in 2000 and headquartered in the United Kingdom with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.
Author’s artificial intelligence statement: I used AI to do the research, correct grammar, flow and structure.
