Mobile shopping apps are expected to become quite mainstream and very successful in coming years.
Mobile app specialist firm, App Annie, predicts that m-commerce will not only accelerate in the near future, but it will become very important. This is welcome news to tech companies in their currently slumping sector.
The firm forecasted rapid growth to the degree that it will break the $6 trillion in transactions per year mark by 2021.
Bertrand Schmitt, founder and chief exec of App Annie, revealed this m-commerce growth prediction in a recent media interview. Should Schmitt’s firm be correct, it would mean a growth rate of 160 percent over the next four years. This year’s transaction estimate over mobile apps is estimated to be $2.3 trillion.
He explained that users are spending more time on their mobile devices. This fact, alone, is a major driver of the spending increase over mobile commerce apps. In 2016, device users spent a total of about 1.6 trillion hours on smartphone and tablet applications. App Annie’s predictions suggest that the number of hours in aggregate spent on those applications will increase to 3.5 trillion in the same timeframe.
This m-commerce growth forecast is the result of massive global smartphone and tablet penetration.
“By 2021, you will really have almost everyone on the planet, ages five to 75, using either a smartphone or a tablet,” said Schmitt.
This trend is also expected to keep up a strong environment for in-app advertising growth, said the firm. The total in-app ad spend prediction will be a growth of $201 billion by 2010 from this year’s $101 billion. Furthermore, the advertising market will experience a shift in the types of ads that will dominate.
Until now, mobile game ads had held the top position when it came to in-app advertising trends. That said, App Annie sees that changing, beginning right away. For the first time, revenue from other forms of mobile advertising products will move past game-related ads, said the company’s forecast.
M-commerce growth will also increase shopping spend. Last year’s revenues were $6.1 billion but the firm predicts that the figure will rise to $139 billion per year by 2021.