Business and Productivity Apps

An untapped developer opportunity

March 2014

Business and Productivity Apps

An untapped developer opportunity

March 2014

Business and Productivity Apps is a research report that explores the emerging enterprise app market and uncovers untapped opportunities for developers. The report identifies trends and opportunities in the enterprise app market, forecasts developer revenues and estimates the size of the market to 2016.

Most of the publicity and media spotlights currently fall on superstar consumer apps like Angry Birds or Candy Crush Saga and communication apps like WhatsApp, ignoring the enterprise app market. We expect developer interest to rise sharply for enterprise apps as we estimate that more than $28 billion were spent on apps by businesses and professional users in 2013.

The Business and Productivity Apps report explains how bring-your-own policies and the consumerisation of IT are transforming the way professionals and enterprises purchase, distribute and consume mobile software More importantly, the report helps developers understand which revenue models they should use and which platforms they should market in this new landscape.

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CONSUMER APPS TAKE THE LION SHARE OF APP STORE REVENUES

Currently, the market for business and productivity apps is concentrated outside of app stores. VisionMobile estimates that business and productivity sales via app stores accounts for just 10% of total app store sales, or just over $1 Billion. This represents just 4% of the business and productivity app market today. We estimate that by 2016, sales of business and productivity apps via app stores will grow six-fold to $6 billion. This unprecedented growth will be driven by the increased availability of business and productivity apps and a three-fold increase in the number of businesses that purchase apps via generic, enterprise or vertical app stores.

APP ECONOMY REVENUES TO EXCEED $140 BILLION BY 2016

Europe is the second largest consumer of apps & related services, by sales value, accounting for 28% of global app sales in 2013. But it will be overtaken by Asia in 2016 as smartphone sales soar in the region. Developers should also be keeping an eye at Latin America and Middle East and Africa, which together accounted for just 13% of the app economy in 2013 but will grow to 19% in 2016.

MOST OF THE BUSINESS APP REVENUE IS GENERATED ON IOS

VisionMobile estimates that at least 60% of revenues in the business and productivity market were generated on iOS in 2013, while Android and HTML5 each accounted for around 17% of the market. As BYOD becomes more popular among businesses, Android is likely to pick up pace as it is by far the most popular platform, in terms of installed base. On the tablet front, however, which is becoming increasingly important for businesses and a close substitute for PCs, iOS is likely to maintain a significant lead in the mid term.

Summary

Apps are changing the way people communicate, work and play. App development has grown into a huge industry, that we estimate to be worth almost $70 billion in 2013. We expect the app economy to more than double in size by 2016.

Most of the publicity and media spotlights currently fall on superstar consumer apps like Angry Birds or Candy Crush Saga and communication apps like WhatsApp. These success stories have certainly highlighted the massive scale and revenue potential of mobile apps, reaching from zero to tens of millions of users in record-breaking time.

At the same time, there is an abundance of apps out there that cater to a spectrum of different user needs. A growing audience of prosumer and business users depend on Box, Evernote and Trello to help them be more productive in their work. Enterprises are now allowing employees to use the apps they love at work, inside the corporate Intranet. Organisations of all shapes and sizes are integrating mobile apps within their business processes.

VisionMobile estimates that more than $28 billion were spent on apps by businesses and professional users in 2013. We forecast that the business and productivity market will reach $58 billion by 2016. This report aims to highlight developer opportunities and forecast the size of the business and productivity app market.

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