HTML5 technology does not represent a significant challenge to native mobile apps, according to market intelligence firm Strategy Analytics, with hybrid apps likely to have a bigger impact.

The company said the feature-rich nature of native apps compared to HTML5 apps and the risk to revenue streams created by HTML5’s open standards mean it will remain a niche technology.

In turn, the importance of native apps will ensure the continued dominance of Apple and Google, with Microsoft’s Windows Phone having an increasingly significant impact.

Hybrid apps, which combine an HTML5 core with native APIs, will show strong growth by exploiting the best elements of native and open standards, the report noted.

Companies currently providing the means to build hybrid apps include PhoneGap, Sencha, Brightcove and Marmalade.

“HTML5 is not the future of apps. While developers dream of ‘write once run everywhere,’ the fragmented support for and limited APIs within HTML5 make this impossible. In fact, we predict the hybrid app is the future”, said Strategy Analytics director of apps research Josh Martin.

Martin added that the hybrid model protects existing business models, supports the differentiation between app ecosystems, and supports the unabated consumption of mobile apps.