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App Install, Revenue Growth to Remain Healthy Despite Smartphone Slowdown

By Diana Goovaerts | May 10, 2016

Application installation and revenue figures are expected to maintain healthy growth through 2020, despite a slowdown in the smartphone market, a new International Data Corporation (IDC) forecast said.

According to the report, nearly 156 billion mobile applications were installed worldwide in 2015. Those installs produced some $34.2 billion in direct, non-advertising revenue, IDC said. By 2020, IDC said those figures are expected to grow to 210 billion installs and $57 billion in direct revenue.

Though the report said growth of both install volumes and direct revenue is expected to slow over time thanks to market maturation, both figures are expected to see healthy growth over the next five years.

IDC forecast mobile application install volume will increase by a five year compound annual growth rate (CAGR) of 6.3 percent, while direct revenue will experience a CAGR of 10.6 percent over the next five years.

IDC said nearly 58 percent of global direct app revenue was taken by Apple’s App Store ecosystem last year, representing a boost of 38 percent year over year despite an 8 percent decrease in Apple’s share of global app install volume. Google Play on Android devices, by contrast, accounted for nearly 60 percent of install volume and around 36 percent on direct revenue in 2015.

The report said while both ecosystems will continue to attract developers, Apple is expected to maintain its dominance in terms of revenue generation.


Filed Under: Apps

 

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