Over the last decade, mobile apps have had a transformational impact on the way we do business and how we interact with each other. The global app economy has gone from strength to strength, and is now transitioning from what was initially a consumer led apps market, think Angry Birds, to a more sophisticated market with significant investment in business led apps. As a result of this transformation, it’s now imperative that organisations have a clear mobile strategy.

Mobile apps have become serious business, enabling innovative companies to drive new revenue streams by creating engaging and immersive experiences for app customers. It’s estimated that between now and 2020, the global app economy will be worth in excess of $100 million (AppAnnie). App Annie recently published a report entitled the ‘App Economy Forecast’ which outlines the key market drivers and stats associated with everything mobile. Below we highlight some of the key takeaways from the report.

Mature markets are switching to revenue growth

Mature app markets are now characterised by increased in-app usage and revenue generation, as opposed to growth in terms of the overall number of mobile app downloads. The US market has historically been characterised as being driven by consistent growth in terms of the total number of app downloads, but this is now expected to change. Developed mobile markets are now displaying strong growth in terms of increased monetisation and use of existing mobile app products (we covered the explosive growth of chat apps in our recent MaryMeeker Internet Trends Report blog).

The IoT will drive the app economy

We recently explored what role the Internet of Things (IoT) will play in the digital revolution, however what influence will the IoT have on the global app economy? In 2008, there were more “things” connected to the web than people. It’s now estimated that by 2020 the amount of web connected devices will reach 50 billion,  some analysts suggest this could be more like 100 billion, with $19 trillion in profits coming from IoT between now and 2025. This incredible transformation will stimulate demand for new apps that are designed and developed purely for the IoT. Broadband penetration is still increasing and the cost of web access is dropping. As new devices are launched with web connected sensors, the demand for new apps will increase rapidly. This will create enormous demand within the enterprise to access mobile app development skills and expertise and facilitate the creation of millions of new IoT enabled apps.

Mobile apps are outperforming the web

Since 2010, the amount of time spent using mobile apps has exploded globally. For many businesses, app usage is the new world currency. It’s estimated that between 2014 and 2015 the time spent using Android apps grew by at least 60%, and generally speaking app consumers are spending more time engaged with their mobile devices. This incredible transformation is primarily being driven by enhanced mobile app development services and UI interfaces that enable businesses and consumers to spend more time using apps. The availability of sensors and connected beacons has also served to create a more rich and immersive user experience for mobile consumers and businesses.

Conclusion

There’s a lot of information to absorb in the latest App Annie Report. One of the key messages from this years report is that organisations need be able to adapt in order to remain relevant against a backdrop of transformative technology change. For established companies, this can mean dealing with technology decisions that were made decades ago. Forward thinking companies can now consider the enormous economic and cultural shifts we are experiencing and establish what can be done to capitalise on these new opportunities.

If your goal is managing innovation, transforming with digital technologies, minimising complexity or developing new mobile or IoT apps, our consultants can help design and deliver the appropriate plans and architecture. If you’re seeking expertise to support your existing initiatives, contact Exception today.

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