Where Will Mobile Apps and Cloud Go Next?

Yankee Group predicts a U.S.$340 billion mobile apps and cloud marketplace in the next five years.

BOSTON--(BUSINESS WIRE)--The evolving mobile app and cloud marketplace is expected to grow to a U.S.$340 billion opportunity in the next five years, according to a new Market Vision report from Yankee Group. The report, “What’s Next for Mobile Apps and Cloud,” details the current state of the market and lays out Yankee Group’s insights on how it will evolve over the coming years.

“Mobile apps and cloud is a global market where successful players can leverage cross-border opportunities to scale”

Highlights include:

• App monetization models are tipping toward in-app purchasing. In 2012, more than 20 percent of U.S. smartphone app users clicked on links within apps to purchase extra content. Developers, content owners and ecosystem competitors are backing in-app commerce as the surest way to make money from apps.
• Enterprises are prioritizing social-mobile-cloud (SoMoClo) initiatives. Almost 10 percent of companies say enterprise social networks will be a technological priority during the next year, and 47 percent are increasing their IT budgets around mobile user hardware. Fully 53 percent are increasing spend on mobile applications, while 36 percent consider cloud-based services a technological priority.
• iOS device owners are the core market for mobile video—for now. In tablets, 40 percent of frequent video viewers are iPad owners. But Apple saw its lead fall 20 percent in the past 12 months, with Android devices gaining significant ground.

“Mobile apps and cloud is a global market where successful players can leverage cross-border opportunities to scale,” said Principal Analyst Jason Armitage, co-author of the report. “Traditional players and new entrants alike must innovate around hot-button sectors such as real-time data, location and security, while taking note of emerging privacy issues and staying open to partner and integration opportunities. The players with the best chance of success are those that anticipate the needs and behaviors of end-users and then innovate to best serve them.”

About Yankee Group

Yankee Group is the preeminent research and advisory firm equipping companies to profit in a mobile world. The core of our content is proprietary research and analytics on the attitudes, behaviors and usage patterns of mobile users. We provide a range of actionable data, insights and advice to marketing, strategy and product executives driving the mobility revolution in leading companies worldwide. Visit www.yankeegroup.com.