Juniper Research: Consumer spending on applications to reach $75 billion by 2017
The latest report from Juniper Research takes a look at consumer spending within mobile applications. The report determined that in 2017, over $75 billion will be spent on consumer apps, with the majority of that money coming from in-app purchases, rather than one-time download fees.
According to the report, one-time download fees will fall to only a quarter of the $75 billion spending total. This is in line with the current real-world trends, as developers look to monetize their applications through in-app purchases, subscription models, or other revenue streams like static or video ads.
Tablet users are expected to increase their app spending substantially, with $26.6 billion in spending being projected for 2017, up from the $7.8 billion spent this year. Games will be at the front of this growth, with game apps expected to account for 32 percent of the total revenue in 2017. Multimedia and “lifestyle” apps are projected to be the second and third most downloaded application categories that year.
Carrier billing will also contribute to large growth in app downloads, as users without credit or debit cards will be able to purchase apps or take advantage of in-app purchases, using their monthly bills or pre-paid totals as payment.
Mobile payment company Bango looks to be at the forefront of carrier billing, as the company announced an operator billing partnership with Mozilla for its Firefox OS smartphones earlier this month.