Mobile App Downloads to Hit 108 Billion in 2017
The Apple App Store, Google Play and third-party app stores were mainly responsible for the explosive growth of application downloads in 2012, according to Berg Insight.As more smartphones, tablets and other mobile devices are snapped up by consumers worldwide, the market for mobile applications is expected to grow as well, with annual downloads projected to reach 108 billion by 2017, according to a report from research firm Berg Insight. The number of mobile application downloads worldwide doubled during 2012 and reached 60.1 billion, up from 29.5 billion in 2011, the report found. Revenue from applications, including direct revenue and in-app ad revenue, totaled approximately $8.4 billion in 2012. Worldwide app revenue is forecast to show a compound annual growth rate (CAGR) of 17 percent to reach $18.6 billion in 2017. The Apple App Store, Google Play and some of the third-party app stores were mainly responsible for the explosive growth of application downloads in 2012, according to the report. Google's Android operating system was the leading platform that year, thanks to a bevy of third-party app stores pushing the platform. "Third-party app stores are especially popular in China and other markets where Google Play hasn't become the default on-device app store," Johan Svanberg, Berg Insight senior analyst, said in a statement. "Monetization is, however, particularly challenging in these markets, even though free-to-download strategies, such as in-app advertising and in-app payments, are promising and have been moderately successful."
With more than 775,000 applications, Apple's App Store is the clear leader in the monetization of mobile apps and will keep the No. 1 position during the forecast period. Google Play and Windows Phone Store are anticipated to rank second and third, respectively, in 2017.