The Indian mobile app development market is expected to grow past the $227 million mark in 2012, growing at a 22.6% from last year, as analyzed by Gartner.

Growing at a steady pace, the mobile app development market is expected to surpass the PC software market by a whopping ratio of 4:1 by 2012. According to Asheesh Raina, principal research analyst at Gartner:

Application modernization and increasing agility will continue to be a solid driver for app development spending, apart from other emerging dynamics of cloud, mobility and social computing.

And

These emerging trends are directing app development demand towards newer architectures, programming languages, business model and user skills.

The report also predicts that 90 percent of large, mainstream enterprises and government agencies will use some aspect of cloud computing by 2015.

Open source software tools will continue to erode revenue for some App development categories in design, testing and Web development.

This is being driven primarily by the success of Eclipse and NetBeans, as well as by overall revitalization of the market by new small software providers looking for technical and market disruptive approaches for offering products. Limited budgets and economic conditions compelling enough to focus on cost reduction, also fuel the use of open-source software in various development projects.

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Tablets are the future of tomorrow, so predicts Research2guidance, the analytical firm. According to a report published by them,

The number of new tablet app consumers increased by 58 million. As a result, tablet owners now constitute 8.6% of the installed app consumer base.

While in 2011,

apps in the Apple App Store for iPad grew 180% to more than 140,000 apps by the end of Q4 2011. While this cannot be easily quantified for Android as tablet apps are not separated out, the growth of niche stores and niche store categories focusing on Android tablets reflects their growing presence. For example, Archos Appslib focuses completely on Android tablet apps, while other stores like Android Tapp has a dedicated category.

During 2011, apps in the Apple App Store for iPad grew 180% to more than 140,000 apps by the end of Q4 2011. While this cannot be easily quantified for Android as tablet apps are not separated out, the growth of niche stores and niche store categories focusing on Android tablets reflects their growing presence. For example, Archos Appslib focuses completely on Android tablet apps, while other stores like Android Tapp has a dedicated category.

growth of tablet user base research2guidance thumb Tablet users to shape the future mobile app market

Also

Several studies have shown that tablet users exhibit different behavior towards app downloading/usage and mobile browsing than smartphone users.  Based on the breadth of use cases for gaming, ecommerce, digital publishing and the enterprise – tablet user growth is likely to have a marked effect on consumption in these areas.

In the enterprise, for example, tablets have already been largely implemented at upper levels of management and are quickly working their way throughout organizations – according to Apple’s CEO Tim Cook in 2012, 92% of Fortune 500 companies are testing or deploying iPads. As more and more use cases are developed and penetration increases, so too will the number of apps being developed for enterprise tablet users. While Apple has already carved out a niche section for iPad and iPhone Business users called “@Work”, other players like Lenovo and Cisco are trying to do the same for Android Business users.

But what about the likes of Galaxy note? The Phablet device which is quickly gaining momentum as the choice of device for user who want a tablet with smartphone functionality and vice versa…!!

No one can arguably deny the tight integration promises smartphones and mHealth apps make. While in 2011, the health app market grew significantly, it is expected to almost double in 2012.

According to a report released by research2guidance

The smartphone application market for mobile healthcare will reach US$ 1.3 billion in 2012 – up from US$ 718 million in 2011. Despite this substantial growth, the mHealth market is still in an embryonic state – especially in comparison to the US$ 6 trillion of the overall global healthcare market. Several factors (esp. smartphone penetration), will continue, however, to drive mHealth market growth over the next couple of years. These findings are part of our new Mobile Health Market Report 2011-2016 report.

 

The increase of revenue stems from downloads, in-app advertisements, mHealth services, direct transactions and sensor sales. As a number of big healthcare companies published mHealth apps in 2011 that go far beyond a simple allergy tracker or pill reminder (e.g. Sanofi Aventis’ sensor-based iBGStar Diabetis monitoring app) sensors are a growing part of the landscape.

 

In 2012 the number of mHealth application users – mobile users who downloaded a smartphone mHealth application at least once – will reach 247 million. Compared to the 124 million users who downloaded mHealth smarthphone applications in 2011, this is a near doubling.

 

The technical aspects of the healthcare landscape are changing rapidly and fundamentally. Healthcare data, the number of healthcare apps and their usage on mobile phones is growing. It is all evolving around smartphones and sensors attached to the phone.

Slide1 thumb Market For Mobile Healthcare Applications Will Grow To US$ 1.3 billion in 2012

This exponential growth of the mHealth apps is a direct result of the technological capabilities modern smartphones possess, alongwith the app stores promoting them.

mHealth applications are proving to be a boon for patients and doctors alike. With smartphones coming to “everyman’s reach”, mHealth apps have seen a spurt in growth.

Research2Guidance, the ever number crunching firm, has released a report  which gives an insight into the mHealth app market.

2011 was the first year of substantial business in the market for mobile health services delivered via smartphone applications.

The smartphone application market for mobile healthcare increased by a factor of 7 to reach $US 718 million in 2011. Nevertheless, the mHealth market is still in an embryonic state. Theoretically the market potential is enormous given the overall worldwide healthcare market size of US$ 6 trillion (WHO estimate) and the potential use cases and benefits for mobile patient healthcare support.

Within the last year, the growth in the mobile healthcare market has greatly accelerated. The main drivers for this growth have been the increase in the smartphone user base on the demand side, and the doubling of the number of mHealth applications on the supply side. These findings are part of research2guidance’s new Mobile Health Market Report 2011-2016.

A majority of the big healthcare companies have discovered mHealth applications as an innovative way to promote and deliver healthcare services and products. A testament to this is that a number of these large players published mHealth apps in 2011 that go far beyond a simple allergy tracker or pill reminder, e.g. Sanofi Aventis’ sensor-based iBGStar Diabetis monitoring app.

chart mHealth 1.2012 mHealth applications market reached $US 718 million in 2011

We are undoubtedly witnessing a transition phase, and mHealth apps will surely become a “must have” for doctors and patients alike.

Research2guidance, the ever number crunching company has produced it’s latest report concerning development for smartphones.

In 2011 publishers created $US 6.8 billion in application download revenues while app development revenues reached $US 20.5 billion. The development service became a mass market almost 3 times of the size of the application download market today.

chart 1.2012 Research: Market for mobile app development services reached $US 20.5 billion in 2011

The market for mobile application development services, including application creation, management, distribution and extension services, has reached $US 20.5 billion vs. $US 6.8 billion in app downloads in 2011. Thus the development market surpassed the content market by the factor of 3.

Today most app project revenue is generated from “classical” app creation services (concept creation, design and coding). New service types like app libraries, white label solutions and multi platform app development tools have become more and more popular, but do not yet take a major share of the market.

Prices for application development services vary significantly between regions. UK developers charge $US 626 per day whereas competitors from India charge, on average, $US 138 per working day.

App development partners using price as the main criteria for selection will not be lead to an optimal solution as most of the price differences are offset by the additional time needed by offshore app developers.

App developers can get a copy of the 98 page report from http://www.research2guidance.com/the-market-for-mobile-app-development-services-reached-us-20.5-billion-in-2011/

2016 is the year when the health and fitness apps will cross the $400 million mark, as per ABI research. ABI has further predicted that there will be 1 billion health related apps downloads by 2016. Interestingly, the wearable fitness devices are the ones which would be pushing the segment’s growth.

The Press Release from ABI Research is as follows

PRESS RELEASE — The sports and health mobile application market will grow to over $400 million in 2016 – up from just $120 million in 2010. Much of that growth will be spurred by the ability of mobile handsets to easily connect to wearable devices that in turn can deliver new functionality, accuracy, and appeal to sports and fitness applications.

As the mobile handset adds new ways to access and support healthcare applications, it will become increasingly important within the healthcare market, including home monitoring systems for aging users, personal emergency response services, and remote healthcare monitoring applications. However, sports and fitness will dominate the mobile health application market.

“Downloadable apps are moving the sports tracking device market from proprietary devices to mobile phones, but adoption has been limited by the data they can collect. However, with the connectivity that Bluetooth Smart will embed in mobile handsets, wearable devices will bring greater detail to mobile handsets,” says Jonathan Collins, principal analyst.

Handset connectivity to wearable devices brings a new dynamic to the sports monitoring market. Athletic equipment players have already moved to support handset applications by either using proprietary or battery-draining traditional Bluetooth wireless. Meanwhile, traditional players such as Garmin, who recently launched its first handset application for this market, and Polar have delivered high-end specialist systems. Over the next five years, these players will increasingly have to compete directly with the mobile handset. They will also face a slew of start-ups and new entrants offering applications, online communities, and wearable devices offering a range of applications and services.

“As applications increasingly become part of a bundle that ships with wearable devices, revenues from mobile applications will lag behind the growth in app downloads. Mobile application downloads will actually grow at nearly twice the rate of revenues between 2010 and 2016, with more than a billion downloads annually by 2016,” says Collins.

Localized apps are the future when it comes to China.

ABI research has published it’s findings, the excerpts of which are as follows

Providing localized features for apps will drive 5.5 billion downloads in China in 2012. An example of a successful localized app is Halfbrick Studios’ Fruit Ninja for China, which includes Chinese zodiac animal images.

Working with local developers and social networks is another way in which foreign developers can localize their apps.

Research analyst Fei-Feng Seet quoted

Regardless of device type, successful apps in the Chinese market are those with a local look and feel and incorporate local content.

China has the most cellphone subscribers in the world, and it is adopting smartphones at an exponential rate. With this adoption rate and the emergence of different app stores,  developers who add a local touch to their apps are at a chance of earning higher than the others.

Enter the dragon. China has moved to number two spot in app sessions. According to  the app research firm Flurry

…for app developers, who more traditionally look at North America and Europe, China is a market too compelling to ignore. A new market has emerged, and China is the new mobile app dragon.

China has grabbed the number two spot and is soon to become the numero uno in app sessions if the growth continues at this pace. Quite surprisingly, it was at number 10 earlier this year.

flurry1 thumb China witnessing astronomical app growth

While the absolute number of iOS and Android sessions Flurry tracked in the US market doubled between January and October 2011, its share of total sessions decreased to 47 percent from 55 percent.

In contrast, the balance of the top 10 countries – UK, Canada, Australia, France, Germany, Japan, Indonesia, South Korea and China – saw a 2.7 times collective increase in sessions, increasing their share of the total to 31 percent from 28 percent.

The rest of the total comes from the “others” group, which Flurry says includes 217 more countries where it tracks sessions. This block has seen its share of the market increase to 22 percent from 17 percent. The same can be seen in the above chart.

China sees the sharpest growth here, with session numbers increasing by 870 percent in the January–October 2011 period. This was ahead of the 570 percent seen for Argentina, and 427 percent growth for Israel.

flurry2 thumb China witnessing astronomical app growth

According to  Mobile Briefing

Most impressively, China started the year in tenth place, climbing to fifth by April. If both China and the US continue their current growth paths, China could overtake its rival by the end of 2013, with both having around 23 percent share of the app market.

In addition to its growing usage, China is also becoming an increasingly important market for new app downloads – its share of the market has increased from 1.2 percent to 12 percent during the course of 2011.

From the above numbers, the dragon surely seems hungry for more..!!!

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Ever wondered how smartphoneusers spent their time and money on apps? Well here is an infographic from Xcube labs to demonstrate the answer

smartphone app usage small thumb Smartphone and Mobile App Usage Infographic

Nothing much to add here.

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App store content leaders of today are not those of tomorrow, is what the research firm Distimo believes. According to DIstimo

…within this year, Android Market will overtake Apple’s App Store for iPhone to become the largest content market – while both will see growth, Android Market currently has the momentum. There is also a significant shift underway among the smaller stores, with Nokia’s Ovi Store set to slip from fourth place to sixth place, while Microsoft’s WP7 Marketplace will move from sixth to fourth.

Apple’s App Store for iPad is currently holding its third place, while RIM’s BlackBerry App World is holding station in fifth.

Noticeably, 4 percent of products on the App Store for iPhone feature in-app purchases, these account for 76 percent of revenue. Free apps with in-app purchases account for 52 percent of the total revenue, with paid apps with in-app purchasing accounting for 24 percent. The remaining 24 percent is generated by traditional paid apps.

Android is not far behind in this model. Android in-app purchases were only introduced in March 2011. 76 percent of the top-25 grossing US apps are free titles monetised through in-app purchases.

The growth of tablets meant that the content has to be suited to the tablet form factor. Though the featurephones will never be extinct, the smartphone use is inarguably on the rise, and so is the number of apps downloaded. The research pointed that North America, Europe and Asia are now “almost equal in size” in download terms.

Research firm Berg Insight has claimed that the number of apps downloaded globally will grow at a compound annual growth rate of 56.6 percent between 2010 and 2015, taking the total to 98 billion at the end of the period.

….revenues from paid applications, in-app purchases and subscription services – so called direct revenues – reached € 1.6 billion in 2010.

…direct app store revenues to grow at a compound annual growth rate of 40.7 percent to reach € 8.8 billion in 2015.

Apple’s App Store is forecast to remain at the Numero Uno spot during this period, followed by Android and Windows Phone.

Johan Svanberg, Senior Analyst quoted

Even though the download numbers will increase during the forecast period, most apps are free to download and app monetisation will be a challenge for developers.

Free to download monetisation strategies such as in-app advertising and in-app purchasing will be increasingly important. This is especially true in the APAC region, which will account for over 40 percent of all mobile app downloads in 2015.

He said that the future belongs to new web technologies such as HTML5, which would replace the native apps. Developers should not see the web and native technologies as “mutual exclusives” and should target the web and mobile platforms logically and strategically.

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