TOP 10 Predictions for the App Economy


The end of 2016 is coming up fast, meaning there is no better time to engage in a time-honoured new year tradition: making predictions for the upcoming year, 2017!

The App Economy & its Path to $166 Billion

In 2016, mobility became more mainstream than ever. Enterprise mobility, as a rapidly growing phenomenon, is expected to shape up the future of millions of companies. The App Annie Research forecasts that gross mobile app spends will hit $166 billion by 2020.

The Future of Mobile: 2017 App Trends, Numbers & Predictions

By the end of December 2016, there will be $52 billion in gross consumer spends on mobile app stores and $77 billion in gross spends on mobile in-app advertising. Hence, it is no wonder the App Annie Report expects numbers to constitute $65 billion spent on mobile app stores and around $101 billion on in-app advertising.

Looking ahead to 2017, all signals indicate that we will welcome a “mobile as usual” approach, meaning, mobility will no longer be a new initiative, but a daily routine.

Gartner predicts that 70 % of software interactions in enterprises will be on mobile devices by 2022.

With the rise of consumer mobile interactions through applications on their phones and tablets, it becomes vital to know the latest updates. Here is a concise collection of highlights we selected for you from the latest Mobile App Forecast by App Annie:

  1. Commerce Consolidation Moves West

As the market matures, expect the 2017 wave of consolidation among consumer apps in the West, judging by the lines of what we saw in Asia, last year. Ridesharing and delivery startups received a mentionable amount of capital investment, plus the discounting pricing became a leading way when attracting new users.

  1. Short-Form Video Explodes

In recent months, we watched how Netflix, became the first single platform able to compete with individual network – the TV. Netflix truly is a potential disruptor to traditional paid TV, and according to App Annie, its potential to replace TV will shift, thanks to the growth of short-form and live video on platforms like YouTube, Facebook, and Snapchat. Time spent on YouTube is skyrocketing, it grew almost by half, in October 2016. The future is bright mainly for Snapchat, which is expected to overtake Netflix’s mobile app.


Source: App Annie

  1. The Growth of B2C Messaging

The power of messaging lies in making existing conversations with a customer more efficient. Thanks to numerous messaging apps, like Facebook Messenger and WhatsApp or to the increasing integration of Facebook Pages. In 2017, we will witness users routing for B2C messaging, rather than traditional chatbots.

  1. Rising Applause for Voice Search

The shift to mainstream usage of voice search is a large-scale process. However, with voice interactions accounting for circa 1,2% of the total sessions on Android phones last year, it is expected to climb up somewhere near 2% in the next few months.

  1. Instant Apps to Reshape App Navigation

Instant Apps, as announced at this year’s Google I/O, let you access the Android app without requiring a download. The travel, food delivery, ridesharing or similar apps that are used less will become more powerful than ever, thanks to the trend called “distributed discovery”. Google Maps is also, a source of app discovery linked to hotel bookings, food delivery, ridesharing, etc.

Similar apps making use of app discovery: Google search, Google Now, Google Assistant recommendations, and many more.

  1. Pokémon Game Phenomenon

Niantic, that is behind the idea of Pokémon GO, came up with a brand new business model in gaming. Revolutionizing location-based gaming, App Annie suggest that 2017 will bring the spotlight to new location-based augmented reality (AR) games.

  1. Smartphone-Based AR Elements

Last year, we saw a handful of companies leveraging the trend of the AR (Augmented Reality)-based elements blended into their enterprise apps. With the upcoming year, companies from a variety of industries are very likely to bring continual experiments with smartphone AR.


Source: App Annie

  1. The Adoption of Mobile VR Accessories

Virtual Reality (VR) means, we can freely watch 360-degree videos, be it our favorite TV show, football game, and more. Mobile VR accessories like Gear VR will soon outpace VR devices like Oculus and HTC Vive.

  1. Eyewear Wearables Domination

According to App Annie, there will be quite a shift from smart watches to smart glasses and this is where OEMs and platform owners should direct their focus. From basic camera-equipped eyewear like Snap Spectacles to full-fledged AR platforms like Microsoft’s HoloLens.

  1. In-home Voice Agents Remain Niche

It’s not a futuristic vision anymore. There have been 3.5 million downloads of the companion app to Amazon Echo in 2016. The recent launch of Google Home lead to the growth of the device adoption. However, the pace of mainstream adoption is not expected to speed up on account of the relative scarcity of other connected home devices.


Source: App Annie

What do you believe will come next to the world of consumer apps? Something that didn’t make it to the list? Drop us a line at or let us know in the comments below!

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