Skip to main content

Global App Revenues to Reach $20.4 Billion in 2013

According to the latest market study by Portio Research, the mobile apps business has matured. The worldwide apps market generated an impressive $12 billion in 2012, and in total 46 billion apps were downloaded in the year.

That is certainly an indication of a market in rapid growth. Just consider that the all-time cumulative total number of downloads stood at 37 billion at the end of 2011, but reached 83 billion by the end of 2012 -- more than doubling in one year.

So in 2012, more apps were downloaded last year than in the previous 5 years all added together. That being said, the app doubling phenomenon is forecast to happen once again in 2013.

Portio's new forecast predicts that 2013 will see 82 billion apps downloaded worldwide, taking the cumulative total to 165 billion apps by the end of this year. Revenues are set for rapid growth too, after 2012 saw full-year app revenues of $12 billion, in 2013 Portio forecasts worldwide app revenues to reach $20.4 billion.

From this doubling of the apps business in 2013, Portio also forecasts that downloads will continue to grow to exceed 200 billion per year by the end of 2017, and revenues in will reach $63.5 billion in the same year.

By comparison, the global mobile subscriber base is forecast to grow at a CAGR of 4.8 percent over the period 2012 to 2017, and annual handset shipments are expected to increase at a CAGR of 6.6 percent over the same time frame, but apps downloads are forecast to grow at an amazing 35.9 percent CAGR.

Portio data shows that in mature markets, usage of apps per person is starting to level off -- in Europe and North America -- and the number of apps downloaded per person is reaching a stable level.

What's driving the growth in the app download business is the rapid growth in smartphone and tablet sales. Smartphone shipments worldwide are expected to reach 823 million this year, in 2013.

Smartphones accounted for around 41 percent of total handset shipments during 2012. This figure is expected to reach 46 percent during 2013, and more than half (56 percent) of total handset shipments will be smartphones by 2017. From 680 million smartphones shipped in 2012, Portio says that they expect to see 1.296 billion smartphones shipped in 2017.

Similarly, tablet sales are enjoying explosive growth now. Tablet shipments are forecast to average a CAGR of 24 percent over the period 2012-2017, rising from 2012 shipments of 136 million, to 2013 shipments of 208 million, going on to 2017 shipments of 398 million devices.

Due to this rapid growth in smartphone and tablet sales, Portio now forecasts that over the period 2012-2017, the number of apps users will grow at a CAGR of 29.8 percent, to reach 4.4 billion users by the end of 2017 -- which is four times as many apps users as there are today.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno