Global Mobile App Store Revenues are Projected to Reach US$82.2 Billion by 2020

Growing Penetration of Smartphones & Spurt in Mobile Internet Consumption to Drive Mobile App Store Revenue, According to a New Report by Global Industry Analysts, Inc.

GIA announces the release of a comprehensive global report on Mobile App Stores. Global Mobile App Store revenues are projected to reach US$82.2 billion by 2020, driven by the growing sales of smartphones and tablets, robust increase in mobile Internet consumption, and growing use of mobile phones for multifunctional consumer applications.

From a mere communication device to a digital computing device, the mobile phone has morphed characters over the decades spurring the development of new next generation mobile software applications (apps). Even today mobile phones are continuing to evolve into multitasking, multimedia devices and as tools for personal expression, enterprise computing and entertainment. Consumers prefer a medley of software capabilities, such as games apps, business apps, communication & social networking apps, and entertainment apps on their phones. For instance, multimedia functions of a phone, such as enablement of games, videos (including video streaming), photos, among others, require apps. The dynamic and mobile lifestyle of modern consumers offers the perfect opportunity for increased app consumption.

Apps help harness the true power of smartphones. Essentially defined as additional features for a mobile phone or computing device, apps are today indispensable for businesses and consumers. Mobile apps have revolutionized user mobile computing experience. Social mobile apps, for instance, are bringing about a social change by blurring the thin line between online and offline life. The modern mobile economy is therefore an app-driven economy. Time and money are being spent on using mobile applications, with app stores offering huge collections of apps for both paid and free downloads. With mobile phones now becoming multi-functional devices supported by apps, the value offered by an app ecosystem ranks as the prime purchase criterion for the device. Hence, there exists a directly proportional relationship between app ecosystem productivity and smartphone sales.

Encouraged by the growing demand for enterprise apps, the coming years are forecast to witness a rise in the number of enterprise app store establishments. Of noteworthy significance is the growing trend among large enterprises to establish internally run and managed mobile app stores. A key factor driving the business case for enterprise class app store is the growing need among companies to enable workforce mobility. Dedicated enterprise app stores in this regard help simplify app management for multiple users across the entire corporate spectrum. These stores comprising company approved apps also help resolve safety and security issues posed by malware and other threats, thus providing companies complete control over the apps used and accessed by their employees.

As stated by the new market research report on Mobile App Stores, Europe represents the largest market worldwide. Asia-Pacific is forecast to emerge as the fastest growing market with a projected CAGR of 24.3% over the analysis period. Growth in the region is supported by rapid penetration of smart devices and smartphones, increasing number of mobile internet users, and digitalizing lifestyles of the growing base of affluent middle class population. Slowly shedding the image of a dedicated free app market, Asia-Pacific is exhibiting significant year-over-year increase in app purchases as consumers begin to upgrade to premium class entertainment and business apps.

Major app stores in the market include Amazon Appstore, Appia, Apple App Store, Baidu, BlackBerry World, GetJar, Google Play, Qihoo 360 Technology Co. Ltd., Samsung Apps, Tencent, TIM Store, and Windows Phone Store.

The research report titled “Mobile App Stores: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of industry segments, trends, growth drivers, restraints, market share, size and demand projections and forecasts. Major geographic regions covered include the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain and Rest of Europe), Asia-Pacific (China, India and Rest of Asia-Pacific), Latin America and Rest of World. The global market is also analyzed by category - Advertising, Paid Downloads, and In-app Purchases. Also analyzed are the number of Free of Charge and Premium downloads. The report also offers coverage on mergers, acquisitions, product launches and other strategic industry activities of major global and regional players.