As per a recent study commissioned by a neutral mobile store operator GetJar, the Mobile App Industry would be worth a whopping $17.5 Billion by year 2012. The study, conducted by ‘Chetan Sharma Consulting’, a well known independent consulting firm also suggests that the number of app stores will grow from the present count of 8 to 38 in less than three years and the number of mobile app downloads will surpass 50 billion.
It’s hardly surprising that Apple’s iTunes Store leads the way amongst all mobile app stores in this recent study. The iTunes Store has more than 3 billion downloads till date and a massive collection of 150,000+ mobile apps. There are encouraging signs for other mobile marketplaces as well, Google’s Android Market is gaining in popularity and other players including RIM and Microsoft have aggressive plans to mark their presence in this closely contested battle.
The study also suggests that off-deck paid for apps will rule the roost in the coming years and will amount to nearly 50% of app revenue. The revenue opportunities presented by these online app stores are all set to grow exponentially, Europe’s mobile app revenue will increase from the current $1.5 Billion to nearly $8.5 Billion while North America’s mobile app revenues will be nearly tripled to $6.7 Billion as compared to the current $2.1 Billion. It’s interesting to note that Asia accounts for the most volume of mobile app downloads but it ranks well below North America and Europe when it comes to generating revenues from mobile app downloads. Clearly, Asian users love free apps and they think twice before downloading a paid app.
Here’s an excerpt from the report:
“The overall mobile apps downloads are expected to increase from over 7 billion in 2009 to almost 50 billion by 2012 growing at the rate of 92% CAGR. The revenue from mobile apps which includes both paid downloads and revenue from advertising and virtual goods is expected to increase from $4.1 billion in 2009 to $17.5 billion by 2012 at the rate of 62% CAGR. Though ondeck (operator managed) mobile apps sales exceeded those from offdeck in 2009, by 2012, offdeck is expected to hold the lion share of the mobile apps revenue.”
Other leading consulting firms including Gartner and research2guidance have also published their reports with projections on the growth of mobile app marketplace. Though each of the reports projects different targets for mobile app revenue, they all highlight that Mobile Apps are Big Business and in a couple of years, it’s going to get bigger and bigger!