Overall growth in GDP, average income likely to propel app market in India
The mobile apps (short for applications) industry, which grew at 22.6% in India last year, is projected to cross the Rs 1,804-crore market in 2012, according to Subho Ray, president of the Internet and Mobile Association of India (IAMAI).
“India is slated to become one of the biggest players in the global app market by 2016, overtaking leading smartphone app markets such as the US, and five Western European Union countries, according to a report by independent mobile industry market research and consultancy provider, Research2Guidance. This is no surprise and rather amplifies the fact that the prerequisites of the Indian market to become one of the leading app markets are improving rapidly,” he told Business Standard.
According to him, among other factors such as the overall gross domestic product (GDP) growth and increase in average income, what will really propel the app market in India is that the country, which is currently ranked seventh in the world in terms of smartphone shipments, with a global market share of 2.9%, will by 2016, be the third-largest market for smartphone shipments (surpassing Brazil and the UK in the ranking) with an accompanying market share of 9.3%.
“India is also the third-fastest growing mobile app market in the world, with the US and Europe leading. Since India has more mobile phone users than PC and laptop users, the future of apps is very bright. Also, what will further boost the apps market is the active app developer community in India. It is a given fact that India has one of the largest app developer communities that concentrate on offshore development today,” Ray said.
At present, there are 9,000 app development companies in India. According to a Nasscom report, most of these were launched during the last three years.
With the growth of the domestic app market (user base and download numbers), more and more individuals will concentrate on developing apps for the Indian market, creating more apps and download opportunities. These drivers will help to make India one of the leading app markets worldwide in only three years, providing enormous business opportunities for domestic players, he added.
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