App market set to reach $32 billion by 2015

People are getting very app ‘appy and are driving serious growth in this sector according to a report by Juniper Research.

In its report, Juniper Research said that the combined revenues from apps funded by pay-per-download (PPD), value-added services and advertising is expected to rise from just under $10 billion in 2009 to $32 billion by 2015.

But while Apple’s App Store has achieved app downloads on an unprecedented scale – 4 billion by April 2010 – the report cautions brands and developers against ignoring users of other platforms and handsets. It said doing this could be counter-productive, particularly in developing markets, where the user base of iPhones and indeed smartphones as a whole is extremely low.

Dr Windsor Holden, author of the report, said: “If the mobile industry wishes to introduce a model based on applications, then it must ensure that those applications are accessible by a wide range of handsets ranging from smartphones to mass market devices.”

The analyst company also warned of the popularity of free over paid-for applications, with Juniper suggesting that only 5-15 percent of downloads involve money. It said this made building a business model aimed at maximising content revenues could be extremely problematic.