How big is the mobile app industry in India?

With India having over 800+ million mobile connections and 50-150m mobile internet users it is obvious mobile apps are becoming very popular. Entrepreneurs are focusing a lot on mobile apps which are internet rather than SMS based (thanks to the recent TRAI ban).

The latest issue of Businessworld (App. App And Away) has covered on this topic extensively. Some highlights (with modifications),

Stats of Mobile Connection in India

•  Total mobile connections 881.4 million (this doesn’t translate to 881.4 m mobile users)
• Of the 881.4 million mobile “connections”, just 30 million have internet facility activated (this doesn’t and need not translate to 30 million mobile internet users).
• By 2015 India is expected to have 237 million mobile internet “activated” connections.
• 97 per cent of the Indian phone market still is prepaid by volume

Mobile App Stats in India

• 100 million apps being downloaded in India every month
• Nokia India alone claims 48 million app downloads from its Ovi store each month
• The global app market is at $4.1 billion in 2009; set to hit $17.5 billion by the end of 2012
• Most of the Indian domestic app market follows freemium model
• India’s app developer base is estimated at 250,000

Various ways mobile app companies make money,

• Global app market size in 2009 was $4.1 billion, projected to be $17.5 billion in 2012.
• Free apps monetize from advertising from pre and post-roll ads.
• Freemium: Base version is free, for advanced features you have to upgrade to a paid model. I see this happening in games, once a user gets ‘hooked on’ to the game, he wants to upgrade.
• Paid: An app developer gets a mere 30% when the app is sold on a platform (abroad it is the reverse, the platform gets 30%)
• In-app product placement: Ads in the product
• White label: Develop apps for clients for a fixed fee or on a revenue share basis.

Few mobile app development companies have started focusing on verticals like textile industry. Good idea. Recently momo in Bangalore held a seminar on mobile apps and had asked me to refer people from non-tech industries. Smart thinking.