According to the latest Strategy Analytics App Ecosystem Opportunities (AEO) forecast, Apple and Google are in a strong position to jointly dominate the mobile app revenue space for many years to come.
The research firm estimates that by 2017 the mobile app smartphone market will generate more than $35 billion.
Apple and Google continue to dominate the app market maintaining more than 75 percent revenue share in 2017.
In particular, the app market will be driven by more targeted advertising, growing consumer interest in virtual goods and the adoption of subscription business models.
“The battle for developers is on and supporting recurring revenue streams is essential to gaining developer support,” says Josh Martin, Director of Apps Research. “It is for this reason that Microsoft and Research in Motion are ensuring their new platforms support in-app purchase and subscription in addition to paid downloads and advertising at launch. They continue to battle for third place as the forecast shows Apple’s and Google’s app stores dominating revenue generation for developers throughout the forecast period.”