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CES Ushers in the App Economy 3.0 as apps drive trillions in revenue

companies from Fisher Price to Lego to Ford to Disney will feel the impact of the app ecosystem

Boston, MA - January 18, 2013 – The Strategy Analytics App Ecosystem Opportunities report, CES 2013: Apps Drive Billions in Revenue, Trillions in Value, predicts that applications will become a critical value enhancer, retention tool, and differentiator for every industry.

Apps will drive more than $35B in revenue by 2017 according to the Strategy Analytics Mobile Apps Revenue Forecast. The figure grows exponentially when factoring in the impact revenue apps have on activities such as a buyer opting for one brand of car over another, purchasing more expensive app-centric toys for their children or engaging more deeply with a company. Ultimately, apps will drive trillions of dollars in value for companies.

 

It was evident at CES that no industry will be immune from app innovations and as a result Strategy Analytics sees four new app-centric product categories impacting 2013:

  • Apps to sell new app-centric hardware such as Parrot’s Flower Power Monitor which monitors soil conditions and send reminders via an app
  • Apps to differentiate product offerings such as Linksys Smart WiFi Apps which will make routers more valuable through the use of connected apps
  • Apps to enhance existing products such as Lego’s incorporation of apps into its popular Mindstorms kit
  • Apps for branding/engagement such as Sesame Street’s Qualcomm powered Augmented Reality learning app

 

According to Josh Martin, Director of Apps Research at Strategy Analytics, “Apps are about more than apps. As the app market matures all companies must make difficult decisions about the role apps will play in their future. Should a company build their own app ecosystem? What type of return on investment model should be used? How will apps help me differentiate? These difficult questions must be addressed quickly because apps are a disruptive force for companies caught unprepared and good developers become an increasingly rare commodity.”


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