Forecast: Annual mobile app revenues to reach $11.9B in 2015


Mobile application downloads worldwide will increase at a compound annual growth rate of 56.6 percent between 2010 and 2015, with downloads reaching 98 billion a year by the end of the forecast period, according to a new report issued by Berg Insight. The firm also anticipates revenues from premium app installs, in-app purchases and subscription services will multiply at a GAGR of 40.7 percent, surging from $2.2 billion in 2010 to reach $11.9 billion by 2015.

Apple's (NASDAQ:AAPL) iOS--currently the leading platform for direct monetization of mobile applications, with App Store revenues of $1.8 billion in 2010--will remain out front for the duration of the forecast period to generate $5.9 billion in 2015, Berg Insight believes. Google's (NASDAQ:GOOG) Android will follow in second, growing from 2010 revenues of $108 million to more than $2 billion in 2015.

Mobile app advertising revenues are on pace to more than double in 2011, reaching $1 billion, Berg states--by 2015, in-app revenues are expected to surpass $4.7 billion, corresponding to 29 percent of total app revenues. Android will lead the way on mobile ad revenues, eclipsing iOS sometime next year--Berg anticipates Android will yield more than $1.6 billion in in-app ad revenues in 2015, up from $53 million in 2010. The iOS platform generated $310 million in 2010 and is expected to reach about $1.3 billion in 2015.

"Even though the download numbers will increase during the forecast period, most apps are free to download and app monetisation will be a challenge for developers", said Berg Insight senior analyst Johan Svanberg in a statement. "Free to download monetization strategies such as in-app advertising and in-app purchasing will be increasingly important. This is especially true in the APAC region, which will account for over 40 percent of all mobile app downloads in 2015."

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