Skip to main content

Mobile Apps Market Reaches the $30B Milestone

As 2012 comes to a close, revenues accumulated by the global mobile application (app) market will pass the $30 billion milestone by the end of this year, according to the latest market study by ABI Research.

The cumulative revenue base includes the income from pay-per-downloads, in-app purchases, subscriptions, and in-app advertisements. Furthermore, it's nearly double the amount that had been reached by the end of 2011.

"Consumer's high interest in apps has for a long time been obvious from download volumes, but it's 2012 that will go down in history as the year when the economic side of the business finally took off. We're no longer talking only about a short-term gold rush. Apps have become a major digital industry," said Aapo Markkanen, senior analyst at ABI Research.

The catalyst behind turning mobile apps into meaningful revenue has been Apple, which created a restrictive "walled garden" operating system (iOS) model that forced mobile network service providers to comply with their demanding terms -- plus a well-executed marketing, distribution and billing approach.

But the company that has been most creative and disruptive in 2012 would be Google, with it's Android OS ecosystem and associated business model that was eagerly embraced by both the jaded network operators and independent app developers.

Markkanen added, "Google deserves a lot of credit for rehabilitating its proposition as an app distributor in the past year or so. If the old Android Market was a garage sale of the industry then the new Google Play has begun resembling a respectable department store."

ABI now estimates that the Android developer's share of the annual app revenues to have reached around one-third of the total market -- with more forward-looking growth on the horizon.

Meanwhile, the main candidates for the distant third mobile OS ecosystem -- Microsoft and RIM -- have clearly made the app monetization aspect a key component of their aspirational platform strategies. But their immediate challenges are very significant.

Success would require that if and when Windows Phone 8 or BlackBerry 10 can manage to attain a sizable number of smartphone users, then the adoption threshold for independent app developers won't be so high -- as it is today. Granted, that's a huge hurdle to overcome.

These key findings are from the ABI Research mobile application market assessment. Their research service focuses on the distribution and the economics of mobile apps, providing data-driven insights on areas such as download volumes, revenues and business models, as well as trends within different applications categories.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c