Mobile apps market to hit $52 billion by 2016

Juniper Research predicts growth from mobile, tablets; HTML5
Juniper Research predicts growth from mobile, tablets; HTML5 to shift downloads from app stores.
Juniper Research predicts growth from mobile, tablets; HTML5 to shift downloads from app stores.


The worldwide market for consumer mobile applications will be worth $52 billion a year by 2016, according to a new report from Juniper Research.

The analyst company says that smartphone and tablet adoption will provide the platform for a rapid growth in demand for apps, while the introduction of operator billing across leading storefronts such as the Android Market and Ovi Store has led to a dramatic rise in revenues being generated.

The mass deployment of in-app billing options, has also meant that, for many storefronts, post-download revenues have surpassed those of PPD (Pay-Per-Download).

The growing popularity of tablet devices will also mean that they will account for a greater share of app revenue, going from 7% of the total global app revenue today, to 25% by 2016. More than 31 billion mobile apps were downloaded in 2011.

The report, ‘Mobile Apps Stores: Future Business Models & Ecosystem Analysis 2012-2016', also predicts that the app store model will come under threat with the emergence of HTML5. The introduction of the new markup language standard will reduce end-user dependence on plug-in app technologies, according to Juniper, and facilitate the transition to a browser-based environment. Additionally, the closer integration between web-based apps and handsets should mean that the advantage that native apps have is reduced. This in turn offers great opportunities for content publishers to offer content on-site rather than be reliant on storefront distribution.

Dr Windsor Holden, author of the report commented: "While we are likely to see some larger media publishers - particularly those dependent on subscription revenues - migrating to a direct-to-consumer model (D2C), this is by no means true for the majority of companies. Most do not possess the scale of traffic to make D2C a viable option: in most cases, the storefront will continue to be the optimal discovery and distribution mechanism."

Editor's Choice

The robots are coming: Impact of AI on executive search
As the technology industry’s elite struggle to agree on the potential impact of AI and a raft of people queuing up to advise on the potential disruption it will cause, this article by John Curtis-Oliver, Partner at Boyden studies the potential impact on the executive hiring and the executive search industry.
Saudi Football changes pitch from MBC to STC
The news comes just a few days after the release of Saudi businessman Waleed al-Ibrahim, who has management control of MBC. Reuters reports senior Saudi officials saying that Ibrahim agreed to an “undisclosed settlement after admitting to unspecified violations”.
CEO hiring: The outsider effect
Outsider CEOs were found to be better suited than insider CEOs according to a KWR study that compared the performance of ‘insider’ and ‘outsider’ chief executive officers in the mobile telecoms operator (telco) sector of emerging markets (EMs) in the Middle East and Africa (MEA), and Asia-Pacific (APAC).

Most popular

Don't Miss a Story

You may also like

Mobile penetration reaches 70% in least developed countries of the world
Digital skills gap identified as a key barrier to ICT and internet use in LDCs
New model proposes device to device networks for improved mobile services
D2D technology works similarly to personal hotspots shared between individuals
Bahrain leads the Arab world in ICT development index
However, substantial digital divides continue to exist between regions and countries
A billion 5G subscriptions by 2023: Ericsson Mobility Report
UAE telcos commit to have 5G infrastructure by 2020