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The Mobile Application Market – 2nd Edition Product Image

The Mobile Application Market – 2nd Edition

  • Published: February 2013
  • 129 Pages
  • Berg Insight AB
108 billion mobile applications will be downloaded in 2017

FEATURED COMPANIES

  • Amazon
  • Big Duck Games
  • GetJar
  • MAG Interactive
  • Oracle
  • Smaato
  • MORE

Berg Insight forecasts that the number of mobile application downloads worldwide will grow at a compound annual growth rate of 12.5 percent between 2012 and 2017 to reach 108 billion at the end of the period. Apple App Store is the current leader in direct monetisation of mobile applications and will keep the number one position during the forecast period. Get up to date with the latest trends on the mobile app market through this report in Berg Insight's VAS Research Series.

The Mobile Application Market is the second consecutive market report from Berg Insight analysing the latest developments on the global market for mobile applications and app stores.

This strategic research report from Berg Insight provides you with 130 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

This report will allow you to:
- Identify the key players in the mobile application value chain.
- Benefit from extensive forecasts and statistical material.
- Recognise the business opportunities in the mobile application market.
- Predict tomorrow's most profitable monetisation strategies.
- Learn READ MORE >

Executive summary

1 Introduction to mobile applications
1.1 Background
1.1.1 App stores simplify distribution for developers
1.1.2 Explosion in the number of apps and app stores
1.1.3 Mobile Internet and the rise of the mobile app market
1.2 Tablets, smartphones and featurephones
1.3 Mobile application categories
1.3.1 Gaming
1.3.2 Utility and productivity
1.3.3 Entertainment
1.3.4 Books and reference
1.3.5 Communication and social networking
1.3.6 Mobile enterprise
1.3.7 Other categories
1.4 App usage
1.5 App discovery
1.5.1 Third party app directories
1.6 The mobile application ecosystem
1.6.1 App store network effects

2 Mobile application platforms
2.1 Mobile handset market overview
2.2 The smartphone market
2.2.1 Focus shift from devices to mobile app ecosystems
2.2.2 Touch input and advanced sensor technologies drives app innovation
2.2.3 Mobile devices and apps challenge PCs and gaming consoles
2.3 Mobile platform and handset vendors
2.3.1 Apple
2.3.2 Google
2.3.3 Huawei
2.3.4 LG Electronics
2.3.5 Microsoft
2.3.6 Nokia
2.3.7 Oracle
2.3.8 Qualcomm
2.3.9 BlackBerry
2.3.10 Samsung Electronics
2.3.11 Sony Group

3 Mobile app developers and publishers
3.1 Major mobile developers
3.2 Mobile app publisher strategies
3.2.1 Choosing monetisation strategy
3.2.2 In-app purchasing is the most successful monetisation strategy
3.2.3 Platform and app store support
3.2.4 Cross platform development and multi monetisation strategies reduce risks
3.3 Case studies
3.3.1 Social gaming – a recipe for MAG Interactive's success
3.3.2 Ndemic Creations plagues the world
3.3.3 Toca Boca builds success on company brand
3.3.4 Endomondo's community fitness app leaves no one behind
3.3.5 Big Duck Games' Flow Free indie success
3.3.6 Storm8 has its own private network with 200 million users
3.3.7 SwiftKey looks beyond apps to expand its business
3.3.8 Console gaming giant Ubisoft expands on mobile platforms

4 Mobile network operators
4.1 Major mobile network operators
4.2 Network operators and the mobile app market
4.2.1 Operator app stores face varying degrees of success
4.2.2 Operator industry initiatives
4.2.3 Operator opportunities in the mobile app market
4.3 Mobile operator app strategies
4.3.1 Orange
4.3.2 Vodafone
4.3.3 Telenor
4.3.4 China Mobile
4.3.5 Telefónica
4.3.6 MTN Group

5 Mobile application stores
5.1 OS developer application stores
5.1.1 Google Play
5.1.2 Windows Phone Store
5.2 Device vendor application stores
5.2.1 Apple App Store
5.2.2 BlackBerry World
5.2.3 LG SmartWorld
5.2.4 Nokia Store
5.2.5 Samsung Apps
5.3 Operator application stores
5.3.1 AT&T AppCenter
5.3.2 Bharti Airtel App Central
5.3.3 China Mobile Market
5.3.4 China Telecom Tianyi
5.3.5 China Unicom WoStore
5.3.6 Orange App Shop
5.3.7 SK Telecom T-Store
5.4 Third party application stores
5.4.1 GetJar
5.4.2 Amazon Appstore for Android
5.4.3 Appitalism
5.4.4 Downjoy
5.4.5 NetDragon Websoft
5.4.6 Tencent App Center
5.4.7 Sky-Mobi Maopao
5.5 White label application stores
5.5.1 Appia
5.5.2 Huawei Digital Shopping Mall
5.5.3 Opera Mobile Store
5.5.4 Ericsson Multiscreen Storefront
5.5.5 SlideMe

6 Mobile application economics
6.1 Application store revenues
6.1.1 Direct and in-direct revenue streams
6.1.2 Mobile app marketing
6.2 App store billing solutions
6.3 Mobile app pricing
6.4 Mobile application monetisation strategies and business models
6.4.1 Paid apps
6.4.2 One free limited version combined with one premium version
6.4.3 In-app payments
6.4.4 Subscriptions
6.4.5 Ad-funded
6.4.6 Marketing and brand apps
6.4.7 New channel to market
6.4.8 Bundle component
6.4.9 Attract a large user base and building communities
6.4.10 Free apps
6.5 Mobile ad networks and in-app ad solution providers
6.5.1 Amobee
6.5.2 InMobi
6.5.3 Jumptap
6.5.4 Madvertise
6.5.5 Millennial Media
6.5.6 Smaato
6.5.7 Tapjoy

7 Market forecasts and conclusions
7.1 Market forecasts by app store
7.1.1 Application download forecast by app store
7.1.2 Direct revenues forecast by mobile app store
7.1.3 In-app advertising revenues forecast by app store
7.2 Market forecasts by region
7.2.1 Application download forecast by region
7.2.2 Direct revenues forecast by region
7.2.3 In-app advertising revenues forecast by region
7.3 Conclusions and strategic advice
7.3.1 App stores is about successful ecosystems
7.3.2 E-commerce, content and subscriptions
7.3.3 Business models and monetisation
7.3.4 Mobile platforms and cross platform development
7.3.5 Multiple app store support
7.3.6 The mobile web, HTML5 web apps and native apps

Glossary

Index

List of Figures

Figure 1.1: Available apps by category (October 2012)
Figure 1.2: Application usage by category
Figure 1.3: Top app discovery methods
Figure 1.4: Examples of app discovery and promotion services (November 2012)
Figure 1.5: The mobile application ecosystem
Figure 1.6: Network effects between users and developers
Figure 2.1: Mobile subscriptions and handset sales by region (World Q2-2012)
Figure 2.2: Smartphone and featurephone shipments (World 2005–2012)
Figure 2.3: Smartphone shipments by vendor and OS (World Q3-2012)
Figure 2.4: Active smartphone platform user base by OS (World 2007–2012)
Figure 2.5: Smartphone shipments by input mechanism (World 2006–2012)
Figure 2.6: Overview of mobile application platforms (2012)
Figure 3.1: Mobile application developer origin
Figure 3.2: Major mobile application publishers (December 2012)
Figure 3.3: Free versus paid business models for different application types
Figure 3.4: Top 15 grossing apps in the Apple App Store in the US (Dec 17, 2012)
Figure 3.5: Number of available apps by mobile app stores (2010–2012)
Figure 4.1: Top mobile operators (World Q3-2012)
Figure 5.1: Leading mobile app stores (December 2012)
Figure 5.2: Leading app stores by number of downloads per day (March–Nov 2012)
Figure 5.3: Examples of mobile operator application stores (December 2012)
Figure 5.4: White label mobile app store providers
Figure 6.1: Revenues by app store (World 2012)
Figure 6.2: Mobile app revenue streams
Figure 6.3: Billing solution characteristics
Figure 6.4: Payment methods supported by mobile application stores
Figure 6.5: Mobile application monetisation strategies
Figure 6.6: Available paid apps on Apple App Store and Google Play (2011–2012)
Figure 6.7: In-app purchasing as share of direct revenues (2010–2012)
Figure 6.8: Ad-funded app category ranking by revenues (2012)
Figure 6.9: In-app ad solutions from major mobile players
Figure 7.1: Mobile application downloads and revenues (World 2010–2017)
Figure 7.2: Mobile device shipments by segment (World 2009–2017)
Figure 7.3: Application downloads by app store (World 2010–2017)
Figure 7.4: Direct revenues by app store (World 2010–2017)
Figure 7.5: In-app ad revenues by app store (World 2010–2017)
Figure 7.6: Mobile application downloads by region (2010–2017)
Figure 7.7: Direct revenues by region (2010–2017)
Figure 7.8: In-app ad revenues by region (2010–2017)
Figure 7.9: Top 3 app business models by generated revenues (November 2012)

108 billion mobile applications will be downloaded in 2017

According to a new research report from the analyst 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 growth will continue and annual downloads will reach 108 billion by 2017. Berg Insight estimates that revenues from applications, including direct revenues and in-app ad revenues, reached € 6.4 billion in 2012. Berg Insight forecasts app revenues to grow at a compound annual growth rate of 17 percent to reach € 14.1 billion in 2017. Apple's App Store is the clear leader in monetisation of mobile apps and will keep the number one position during the forecast period. Google Play and Windows Phone Store are anticipated to be number two and three respectively in 2017. The increase in app downloads during 2012 comes mainly from Apple App Store, Google Play and some of the third party app stores. Third party app stores pushed Android to become the leading platform in terms of app downloads during 2012. While many Western third party app stores are struggling, the situation is different in other parts of the world. “Third party app stores are especially popular in China and other markets where Google Play hasn't become the default on-device app store” said Johan Svanberg, Senior Analyst, Berg Insight. Monetisation 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. The most important trends on the app market today are the popularity of free to download apps and multiplatform support. Furthermore, publishers commonly incorporate social features, where some build their own social platforms and others use existing social networks in order to expand their application user base and increase engagement. “Every app can find its own way to success, but common strategies today among many of the top revenue generating app developers are to publish apps featuring a social layer on more than one platform using free to download monetisation” adds Mr. Svanberg. The mobile app market is highly competitive, but the economical upside can be great for the successful publishers. “Like almost no other digital product, mobile apps represent a global opportunity with more or less instant worldwide distribution” concludes Mr. Svanberg.

- Amazon
- Amobee
- Appia
- Appitalism
- Apple
- Apple App Store
- AT&T AppCenter
- Bharti Airtel App Central
- Big Duck Games
- BlackBerry
- BlackBerry World
- China Mobile
- China Telecom Tianyi
- China Unicom WoStore
- Downjoy
- Endomondo
- Ericsson Multiscreen Storefront
- GetJar
- Google
- Huawei
- Huawei Digital Shopping Mall
- InMobi
- Jumptap
- LG Electronics
- LG SmartWorld
- Madvertise
- MAG Interactive
- Microsoft
- Millennial Media
- MTN Group
- Ndemic Creations
- NetDragon Websoft
- Nokia
- Opera Mobile Store
- Oracle
- Orange
- Qualcomm
- Samsung Apps
- Samsung Electronics
- SK Telecom T-Store
- Sky-Mobi Maopao
- SlideMe
- Smaato
- Sony Group
- Storm8
- SwiftKey
- Tapjoy
- Telefónica
- Telenor
- Tencent App Center
- Toca Boca
- Ubisoft
- Vodafone

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