Viva free mobile apps in 2013

·23 Sep 2013

Mobile app stores will see annual downloads reach 102 billion in 2013, up from 64 billion in 2012, according to research and advisory firm, Gartner.

Total revenue in 2013 will reach $26 billion, up from $18 billion in 2012.

Free apps will account for 91% of total downloads in 2013, Gartner said, adding that in-app purchases (IAPs) will account for 48% of app store revenue by 2017, up from 11% in 2012.

“We expect strong growth in downloads through 2014, but growth is forecast to slow down a bit in later years,” said Sandy Shen, research director at Gartner.

“The average downloads per device should be high in early years as users get new devices and discover the apps they like. Over time they accumulate a portfolio of apps they like and stick to, so there will be moderate numbers of downloads in the later years.”

Gartner said that free apps currently account for about 60% and 80% of the total available apps in Apple’s App Store and Google Play, respectively.

Brian Blau, research director at Gartner said that iOS and Android app stores combined are forecast to account for 90% of global downloads in 2017. These app stores, Gartner added, are still increasingly active due to richer ecosystems and large and very active developer communities.

“However, we expect average monthly downloads per iOS device to decline from 4.9 in 2013 to 3.9 in 2017, while average monthly downloads per Android device will decline from 6.2 in 2013 to 5.8 in 2017. This relates back to the overall trend of users using the same apps more often rather than downloading new ones,” Blau said.

IAP purchases will drive 17% of the store revenue in 2013 and increase to 48% in 2017. However, as with downloads, IAP is expected to have strong growth in 2013 and 2014 and slow in later years.

This is due to smart devices reaching more mass-market consumers whose willingness and/or affordability to spend on IAPs is lower than early adopters. Nevertheless, IAP will become a major monetization method for apps stores and developers.