Chetan Sharma Consulting is out with an report on the mobile apps market, which says that mobile apps downloads are expected to go from 7 billion in 2009 to 50 billion by 2012, growing at a rate of 92% CAGR. Chetan Sharma says this will create a $17.5 billion market by 2012.
Chetan Sharma looked at the growth of ondeck (offered on carrier deck), offdeck (outside the carrier), smartphones, featurephones, paid, free, and advertising based (including virtual goods) apps revenue. It calculated the growth in the five major regions: North American, Europe, South America, Asia, the Middle East, and Africa. It then looked at smartphone and subscriber growth, looked at who is downloading mobile apps, and estimated how apps downloads are likley to grow over time.
The report says that in 2009, the total number of apps downloads were about 7 billion, with Asia leading growth at 37% of downloads. By 2012, the number of downloads are exptected to growth to 50 billion per year. The main driver of apps growth will be wider adoption of “featurephones” and smartphones. However, Chetan Sharma also observes that the revenue models associated with apps are changing. For example, in 2009, advertising contributed almost 12% to overall apps revenue. This share is expected to more than double by 2012 to almost 28%, according to the report.
You can read the whole report here.