Mobile App Industry to Explode in 2011, according to Gartner
The Mobile App industry is forecasted to explode this year thanks to the rise of smartphone adoption. 76% of smartphone owners have downloaded an app to their phone at some stage, according to Accenture (in its report released in december « Retail Applications of Mobile ») – and this is a trend that nobody expects to slow anytime soon.
Research firm Gartner, in its report titled “Mobile Application Stores Worldwide 2008-2014”, predicts that worldwide mobile application store revenue will almost triple over the next 12 months, from $5.2 billion last year to $15.1 billion in 2011. It expects total app store downloads to double to nearly 18 billion. The majority of downloads will remain free. In fact, free downloads are forecast to account for 81% of total mobile application store downloads in 2011.
According to Gartner, app makers will be more dependent in the coming years upon advertising revenue and by the end of 2014, advertising will be generating approximately one third of their revenues generated by application stores, up from 16% 2010.
As this market is rapidly growing, we will likely see increased competition and new business models and new players. Watch this space…