The Mobile Application Market – 98 Million Downloads And €12.3 Billion In Revenues In 2015

Berg Insight estimates that revenues from paid applications, in-app purchases and subscription services – so called direct revenues – reached € 1.6 billion in 2010. Berg Insight forecasts 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 iOS is the current leader in direct monetisation of mobile applications and will keep the number one position during the forecast period. In 2010, the Apple App Store generated revenues of € 1.33 billion. In 2015 the company’s app store is predicted to generate € 4.4 billion in direct revenues. The Android platform is the second largest platform in terms of direct revenues and generated € 80 million during 2010 which will grow to almost € 1.5 billion in 2015.

The market for in-app advertising took off during 2010 as a means to capitalize on free apps. In-app advertising generated € 300 million representing 16 percent of the total app revenues during the year. In 2011, app advertising revenues will more than double to reach € 750 million. The in-app advertising revenues will increase throughout the forecast period and in 2015, in-app advertising is forecasted to generate € 3.5 billion corresponding to 29 percent of the total app revenues. In-app advertising is more of a volume game and Android will surpass iOS in 2012 as the platform that generates most in-app ad revenues. Berg Insight predicts Android to generate over € 1.2 billion in in-app ad revenues in 2015, up from € 39 million in 2010. The iOS platform generated € 230 million in 2010 and is forecasted to reach almost € 1.0 billion in 2015.

Source: Berg Insight