One of the reliable sources of tech industry’s latest in the global market is App Annie. For 2016, AppAnnie.com predicts that the market will expand by 24 percent reaching a gross of $51 billion in app stores. China is set to overtake U.S. in the department of internal revenue solely from app related purchases before the August 2016. The growth in markets that are mature is constant with entry of new players, especially India. The dramatic rise will hold steam till 2020.
App Annie’s Predictions
This is the first time the firm has released a predictions in the app arena for 2016. The key points of the prediction are as follows:
1. Platform messengers from Asia will continue to lead on the basis of time sent in app and number of sessions but a strong contender is Facebook
Platform messengers like WeChat and Line have transcended from regular functionality to offer taxi hailing, ecommerce market place, personal wealth management, catching with up latest news and celebrity gossip and much more. What started as a messaging app has evolved to a platform. Although a strong barrier exists between the Western and Asian messaging apps, Facebook is encouraging the metamorphosis of Messenger to a platform. The messengers of Asia exhibit twice as much session numbers which directly translates to the increased chances of converting the time spent into money.
2. Virtual Reality and Augmented Reality will break the Asian Market
Right now the concept of VR is in the ‘hype’ stage but is soon expected to translate to early adoption of AR. The gaming population of Asia tends to purchase the latest release before the general public does. These items include High-definition TV, broadband subscription and advanced accessories. The collaboration of Samsung with Oculus played a crucial part in the acceptance of the concept of VR. Japan has always been the first to adopt new technology and this market cannot wait for virtual reality.
3. Subscription to Overtake In-App Purchases
More money is expected to flow into the app through subscriptions instead of purchases. This comes from the success of HBO and Tinder’s premium Plus tier. Subscriptions attract more takers owing to its unrestricted all-access for a set duration. Another area that will benefit from subscription is the in-app advertisements. The app-publishers targeting iOS are devised to pushed deeper into the app eco-system. Mobile app development, going forward will include inclusion of subscription.
India is the hottest market now: App Annie is excited to announce the alluring market potential of India. All global markets are turning their attention to India. The size and low penetration rate of smart phones makes the process all the more exciting. The Indian economy is in need of making the right connections between the buyer and seller, a distance that can be bridged by technology.
4. Merge of O2O Spaces
Starting 2014 witnessed an innovative phase of online-to-offline e-commerce industry. Growth promotes competition which in turn cuts prices. Consumers benefit from slashed prices while developers are pitted against each other to deliver quality apps in the set budget. Well known successful publishers are constantly buying out smaller emerging start-ups that taste success. It is no secret that Japan is dominated by RPG- domestic market that is big on gaming. Acquiring of these indigenous publishers can pave the entry into foreign markets. Arcade style games are as popular in Asian countries as they are in the west.
Acquisitions are spread over all markets. In transportation the wheels set in motion post the Didi-Kuaidi merger, eCommerce witnessed the takeover of FreeCharge by SnapDeal. In food delivery Just Eat India was bought over by FoodPanda. These mergers and acquisitions help in creating an ecosystem that is healthier at affordable price of purchase for enhanced app usage.
5. Debut of Wearable Technology
2016 may witness the debut of technology that can be worn as an accessory. The market launch of such products will replace the dependence on mobile phones for accessibility. Apps that are tailored for vertical-specific contexts will find more acceptances. Developers are now concentrating on hands-free access with targeted diverse end users from field staff to those who work in a factory.
What do you think? Is App Annie Prediction going in right direction? Please share your views.