Smartphone apps market to reach $101.2 billion by 2017

World smartphone apps market is forecast to reach $101.2 billion by the year 2017.

Given the positive outlook and encouraging flow of investments despite difficult economic conditions, smartphone apps market offers tremendous opportunities for vendors seeking to establish their presence in this domain.

Smartphone Apps have quickly transformed from a niche market to a mainstream force that is changing the way consumers receive information, media and entertainment.

The growing importance of apps can be put into perspective by the fact that in the year 2010 the mobile app design industry was touted as one of the best in terms of harboring lucrative prospects for enterprising entrepreneurs.

A true barometer of the success of smartphone apps is the rate of smartphone handset penetration. The smartphone apps market is expected to feel the trickling down effect of the sanguine business climate permeating the market for smartphones, according to Global Industry Analysts.

Smartphone vendors are rapidly developing their App development skills earmarking resources for dedicated app development departments within their organizations. This is primarily because apps are turning out to be a key revenue generator for vendors and their wireless carrier partners.

Commoditization of the smartphone industry will continue through 2017, with average selling prices falling drastically every year.

Progress in 3G telecom networks arena, rapid transition from traditional mobile phones devices to smartphones, diverse range of mobile digital services and competitive rate plans is poised to help smartphone devices break new grounds, and smartphone apps is all set to emerge into the greatest beneficiary of this evolving state of affairs.

Given the fact that market fortunes for smartphone apps is closely tied to the prevailing market conditions in the smartphones market, the recession resilient sales of smartphones worldwide has positively benefited the smartphone apps market.

Smartphone app downloads has become an international trend driven by the fact that more people globally are increasingly familiar with smartphone functionality. Mobile entertainment in the form of smartphone apps is a major driver sprucing up sales of new, technology superior handsets, which leverage data networks to transmit location based services, games, and productivity apps.

The average level of spending on apps is also significantly low ranging between US$0.99 and $25, which enables customers to download apps even during frugal economic environment. Also, the value offered by entertainment during weak economic times is typically higher, since people tend to seek out diversion as an option to ease the pressures of an increasingly tough economy on their lives.

The willingness of core users to download apps even in the midst of recession fuelled the fortunes of smartphone apps industry, giving it a better chance of success than any other business relying on discretionary spending.

In 2010, smartphone app downloads witnessed an accelerated growth, when compared to downloads in 2009. Rapid increase in the sales of smartphones, coupled with an explosion of app stores resulted in the overwhelming increase in smartphone app downloads. The iPhone continued to be the leading app platform while Android platform also gained tremendous popularity among app developers in 2010.

Presently, the adoption of smartphone apps is patchy in different parts of the globe. The uptake is more pronounced in developed markets such as United States, and Western Europe, while in other developing markets roll out of apps is less picturesque than contemplated.

Europe and the United States account for a major share of the global smartphone apps market. Also, the average selling price (ASP) per application is highest in the North American region, followed by Europe, when compared to other regions in the world.

The current generation of mobile phone users demand a medley of software capabilities, such as, games apps, business oriented applications, communication & social networking apps, and entertainment apps. Gaming Applications are the most popular type of apps, followed by entertainment apps, maps, weather and news, productivity and banking, and social networking apps.

Major players in the global marketplace include Appia, AppCity, Apple, GetJar, Google, Handmark, MobiHand, Nokia, Research In Motion, Samsung Electronics, among others.

By Team
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