Mobile application adoption will grow from 156 billion in 2015 to more than 210 billion installs and nearly $57 billion in direct revenue in 2020.
A new report from International Data Corporation (IDC) estimates mobile device users installed nearly 156 billion mobile applications worldwide in 2015, generating $34.2 billion in direct (non-advertising) revenue.
However, the IDC says it expects to see slower growth in both application install volumes and direct revenue over time.
"This trend, which is largely driven by market maturation, will see annual install growth fall into the single digits over the second half of the forecast.
"Mobile application install volumes will still experience a five-year compound annual growth rate (CAGR) of 6.3%, according to the report.
Meanwhile, IDC revealed direct revenue from mobile applications will also experience slower growth by the end of the forecast period, although the five-year CAGR will remain in the double digits at 10.6%.
According to Statista, mobile app store revenue worldwide is projected to grow to $76.6 billion by 2017. The statistics portal found an average smartphone user has about 42 apps on their device, while 55% of people use one to four apps per day.
Statista adds around 10% to 33% of mobile users either search for apps first or only for apps on their mobile phones.
Figures released by enterprise mobility provider Globo indicate 81% of employees surveyed are using their own apps to improve their working productivity. These figures, according to Globo, suggest one of two conclusions: either companies aren't providing sufficient enterprise apps, or consumer apps are doing a sufficient job for employees.
Grant Theis, co-founder of ttrumpet SA, says SA organisations are constantly looking for ways to improve their services and to set themselves apart from competitors. Mobile apps, he adds, are here to stay and have become a part of our everyday lives from both a personal and professional aspect.
"Businesses today are also looking at investing in the right solutions to enable enterprise mobility through creating relevant apps as it has proven to have more positives for the businesses bottom-line then negatives.
"Mobile apps need to solve specific problems and will mainly be built as a fit-for-purpose app.
"Industries such as healthcare, for instance, need complex mobile apps that are role-based - for example, a nurse requiring a certain app that feeds the necessary information to a doctor," explains Theis.
The IDC says the sheer volume of Android-based devices in use ensures a greater overall number of installs through Google Play, which captured about 60% of install volume and nearly 36% of direct revenue in 2015.
The IDC's report found Apple's App Store "ecosystem" captured nearly 58% of global direct app revenue in 2015, an increase of 36% year over year. Meanwhile, Apple's share of global app install volume was only 15%, down nearly 8% year over year.
John Jackson, research vice president of Mobile and Connected Platforms, says Facebook and Google continue to dominate mobile ad spending thanks to the scale and sophistication of their network effects. He adds Facebook's moves to incorporate news and other interests into its experience will likely pull traffic and install volumes away from discreet apps.
"While they provide a convenient measure of the mobile app economy and its beneficiaries, we caution that preoccupation with download/install volumes and associated direct revenue may miss the thrust of changes in the mobile marketplace, states Jackson.
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