Skip to main content

Global Mobile Apps Market will Reach $20+ Billion

The mobile applications (apps) business has reached maturity and is now growing exponentially. Apps generated impressive revenues of $12 billion in 2012, and in total 46 billion apps were downloaded in the year, taking the cumulative all-time total downloads to 83 billion.

By comparison, the all-time cumulative total number of downloads stood at 37 billion at the end of 2011 -- which more than doubled by 2012, according to the latest market study by Portio Research.

Moreover, during 2012, more apps were downloaded than in the previous 5 years combined.

This doubling of the market is forecast to happen once again in 2013. Portio's forecasts show that 2013 will see 82 billion apps downloaded worldwide -- taking the cumulative total to 165 billion apps by the end of the year.

Revenues are also forecast to grow rapidly. During 2012 app revenues reach $12 billion, in 2013 the forecast is for worldwide app revenues to reach $20.4 billion.

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

While 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 -- apps downloads are forecast to grow at 35.9 percent CAGR.

Portio's assessment shows that in mature markets, usage of apps per person is starting to level off, in Europe and North America, 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. It's also 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 expects to see 1296 smartphones shipped in 2017.

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.

In summary, Portio forecasts that over the period 2012-2017, the number of mobile apps users will grow at a CAGR of 29.8 percent, to reach 4.4 billion users by the end of 2017 -- that's 4 times as many apps users as there are today.

Popular posts from this blog

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch