The industry benefits from consumer acceptance of smartphones
Melbourne, Australia (PRWEB) September 29, 2012
Five years ago, the Smartphone App Developers industry in Australia was in near non-existence. Now, the industry is estimated to have grown nearly 300-fold, or at an annualised 177.2%, in the past five years, to reach $294.5 million in 2012-13. This can be attributed to several factors, with one of the most significant being the rising use of the smartphone not just in Australia, but worldwide, raising the demand for developers as smartphone owners attempted to take advantage of their smartphones as much as possible. According to IBISWorld industry analyst Craig Shulman, “this has been further catalysed by a growing comfort level with purchasing goods online, which has carried over to purchasing smartphone apps as well”. Thus, many organisations have sought to take advantage of these trends by releasing a branding tool, improvement to their overall product offering, or revenue generator on app marketplaces, which has in turn boosted growth within the industry.
IBISWorld expects the Smartphone App Developers industry in Australia to continue growing strongly over the next five years. ‘However, as the base has increased, the growth rates have decreased’ Shulman adds. Besides continuing smartphone penetration, growing internet capabilities, like the introduction of Telstra's 4G network, are expected to make smartphone app access and use even easier and more convenient. However, the industry may be slightly slowed by the recovery of the global software publishing industry, which may entice some smartphone app developers to move towards larger projects, which will generate significantly more revenue.
The two largest players in the industry are Electronic Arts and Halfbrick Studios. The companies are games developers who not only earn sales revenue from app purchases and in-app purchases but also advertising revenue. While these are the nation's largest and most prolific gaming studios, the remainder of the market is fragmented. As a result the industry has a low level of market share concentration. Much like the advertising services, the presence of numerous digital agencies and owner-operators means that competition is intense between industry participants.
For more information, visit IBISWorld’s Smartphone App Developers report in Australia industry page.
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IBISWorld industry Report Key Topics
Businesses in the industry develop and publish applications for smartphones and mobile devices. Apps are typically sold in a special app store that can be accessed through the device.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.