Analysts In-Stat claim that the mobile applications market is growing rapidly and will continue to evolve in the coming years.

In-Stat is predicting that mobile application download revenue will surpass $29 billion in 2015. Amy Cravens, Senior Analyst says this growth has created new opportunities it also presents new problems.

“The market is flooded, and there is also significant pricing pressure as well as a shift toward free applications which will necessitate new revenue models,” she said.

The market was spurred by the launch of the iPhone, but as the market matures, developers and app stores need to come up with some good ideas and compete across multiple platforms to attract users. She predicts that mobile application downloads will approach 48 billion in 2015. Smartphones are expected to increase from 23 per cent of total phone shipments in 2010 to over 45 per cent in 2015.