The total size of the ‘app economy’ will hit $151 billion by 2017, more than double the $72 billion forecast for 2013, according to research firm Appnation.
ABI Research recently forecast that the mobile app market will be worth $27 million in 2013 from revenue generated directly from apps.
The first ‘State of the App Economy Report’ predicts that the largest contributor to this growth will be app-enabled commerce, with revenue from downloads, in-app advertising and virtual goods complementing this.
Drew Ianni, founder and CEO of Appnation, said that despite the popularity of apps and a saturated marketplace in the US, the app economy’s overall growth rate is still accelerating.
“With the number of apps used per day by US consumers still expanding, and as time spent on mobile devices shifts more to using apps versus other media, it is clear that there is still a lot of runway ahead across all key sectors of the app economy,” he said.
“Smartphones and tablets are driving the app economy today, but emerging platforms, such as connected cars and smart TVs, are providing new opportunities as well as raising thorny questions regarding how they will interface with apps consumers already have,” added Reticle Research principal analyst Ross Rubin, who co-authored the report.
The research also found that most device owners under the age of 45 use video apps at least a few times each week and that word of mouth of the most common way for people to discover new apps.