Mobile application market in india 2017 - Research on India

Mobile Application Market – IndiaJune 2017

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Mobile Application Market in India 2017

Executive Summary

Market Overview

Drivers and Challenges

CompetitiveLandscape

• Globally, mobile app market size in terms of value is projected to grow at a CAGR of xx% to reach INR xx bn by 2020 from INR xx bn in 2015

• Revenue-wise, iOS App Store will be the highest doubling from 2015 to reach INR xx bn in 2020, where as combined revenue from Google Play andthird-party Android stores is expected to grow at a CAGR of ~xx% to reach INR xx bn in 2020

• Indian mobile app market size in terms of value is projected to grow at a CAGR of xx% to reach INR xx bn by FY 2020 from INR xx bn in FY 2014

• Mobile app downloads is estimated to grow at a CAGR of xx% to reach xx bn downloads by FY 2020 from xx bn downloads in FY 2016

• With the introduction of 4G, and Reliance Jio having triggered a price war amongst the incumbent networks, the mobile internet market in India hasbeen revolutionized

• Different operating system used in app development are Android OS, IOS and Windows

• Some of the popular Android apps are SHARE it, Xender, UC Browser, Facebook, Whatsapp Messenger, Hotstar, Opera Browser and others

• Mobile app downloads is driven by increase of Indians owning affordable smartphones along with rising number of mobile internet users

• Majority of the apps are downloaded by the people aged between xx to xx years of age

Drivers

Growth in Smartphone Market Increase in Mobile Internet Users Growth in E-Commerce Adoption Convenience in Using Apps

Challenges

Security Concerns Linguistic Barriers Diversity of Handsets and Their Compatibility with The Operating Systems

Major Players

Company 1 Company 2 Company 3 Company 4

Company 5 Company 6 Company 7 Company 8

2

Socioeconomic Indicators

Market Overview

Market Influencers

Competitive Landscape

Recent Developments

Appendix

3




Total Population

4

Population Density

1,500

1,000

500

0

mn X%

2020

k

2019

j

2018

i

2017

h

2016

g

2015

f

2014

e

2013

d

2012

c

2011

b

2010

a

0

100

200

300

400

500

Persons per sq. km

e1

2013

d1

2012

c1

2011

b1

2010

a1j1

2018

i1

2017

h1

2016

g1

2015

f1

2014

k1

2020

Y%

2019


Market Definition & Structure

5

Mobile Application

Web App xxxx

Market Definition• A mobile app is a software application, developed specifically for use on small, wireless computing devices, such as smartphones and tablets, rather than desktop or laptop computers• It comes preloaded on the handled device as well as can be downloaded by users from app stores or the internet• There are three different category of mobile application: Web App, Native App and Hybrid App• Mobile apps cater general consumers as well as institutional users• The apps represent a variety of categories including social games, entertainment, shopping, music travel, travel, communication, business and more

• xx• xx • xx


App Characteristics – Based on Types

6

Features of Mobile Application – Based on Types

Native HTML5 / Web App Hybrid

App Features

Graphics xx xx xx

Performance xx xx xx

Native Look and Feel xx xx xx

Distribution xx xx xx

Device Access

Camera xx xx xx

Notifications xx xx xx

Contacts, calendar xx xx xx

Offline storage xx xx xx

Geolocation xx xx xx

Gestures

Swipe xx xx xx

Pinch, spread xx xx xx

Connectivity xx xx xx

Development Skills xx xx xx


Evolution of Mobile Applications Platform

7

• xx

xx

Mobile Application Market in India 2017 8

• xx • xx • xx

Communication Games Multimedia

• xx • xx • xx

Productivity Travel Utilities

Mobile Applications – Based on Usage

Classification of Mobile Apps – Based on Usage

Note : The above list is not exhaustive


Convenient to Use• Mobile users can download the mobile app in their mobile devices and use them whenever they want, helping them to save time

• xx

Accessibility• Mobile apps provide mobile accessibility to software applications of various nature on portable devices regardless of location

• xx

Notifications

Advantages of Mobile Apps

Advantages of Mobile Application For Consumers

• Consumers receive instant notifications about special offers and promotions related to the app instantly which keeps them well informed about the app

whereabouts

• xx

Online Shopping• There are different mobile apps for online shopping purpose

• xx

Personalization

• There is a huge amount of information, services and applications that is currently available on the Internet, and the relevance of information users receive is very important

• xx


Social Integration• Social integration is the current trend which comes in the form of social networking sites such as, Facebook, Twitter, LinkedIn and Whatsapp

• xx

Business Communication

Advantages of Mobile Application For Business Entities

• Mobile apps not only impact internal members of a business organization, it also helps in communication between buyers and sellers

• xx

Advantages of Mobile Apps (Continued)


Market Overview – Global

11

Mobile App Market Size & Growth Forecast

0

100

200

300

bn

xxxx

2015

xx

2016e

Xx%

2020e

• Globally, mobile app market size in terms of value is projected to grow at a CAGR of xx% to reach INR xx bn by 2020 from INR xx bn in 2015

Total time spent in apps grew by xx% on Android phones from 2014 to 2015, because apps are increasingly becoming an important resource for communication, entertainment, shopping andproductivity

• Mobile app downloads is estimated to grow at a CAGR of xx% to reach xx bn by 2020, due to increase in smartphone penetration in emerging markets, such as India, Mexico, Braziland Indonesia

Much of the growth will be a function of developers tapping inherent needs unique to each region

China drives the most downloads and is expected to be the greatest contributor towards app downloads through 2020

• xx

Current Market Scenario

0

2,000

4,000

6,000

8,000

INR bn

2015

xx

xx

2016e

Xx%

2020e

xx

Value-wise Market Size & Growth Volume-wise Market Size & Growth

App DownloadsGross Revenue


Market Segmentation – Global

12

Apps Non Games and Games Forecast – Annual Download Wise (bn)

Apps Non Games and Games Forecast – Annual Gross Revenue Wise (INR bn)

• Non game app downloads are projected to grow at a CAGR of xx% exceeding xx bn in 2020

• Globally, the popularity of social media is driving mobile consumers to spend about 2 hours ormore per day on social and messaging apps

• Games are a significant driver for downloads, summing xx bn downloads and accounting for xx%of overall downloads across app store

• xxxx xx

Games

Apps (Non-Games)

xx xx

2015 2020e

• Revenue from non game apps is expected to grow xx times to INR xx bn in 2020

• In 2015, games generated ~xx% of the app market revenue, representing a total of INR xx bn

• It is expected that games category will grow to INR xx bn in 2016 and INR xx bn in 2020

• xx

xx

xx

Apps (Non-Games)

Games

xx

xx

2015 2020e


Market Overview – Indian

13

Mobile App Market Size & Growth Forecast

20.1

7.7

0

5

10

15

20

25

bn

Xx%

2020e2016e

• Indian mobile app market size in terms of value is projected to grow at a CAGR of xx% to reach INR xx bn by 2020 from INR xx bn in 2014

Mobile app business is powered by three models – paid, in-app purchase and advertising

With in-app purchase mobile app users can install an app for free and then later pay for additional functionality or to remove embedded app, thereby allowing app revenue to grow year after year

• Mobile app downloads is estimated to grow at a CAGR of xx% to reach xx bn downloads by 2020 from xx bn downloads in 2016

Increase in the number of mobile internet users along with the increase in usage of smartphones is driving mobile app downloads

The app economy is also driven by time spent by users on mobile apps

xx

Current Market Scenario

0

50

100

150

200

xx

2016

xx

2015

xx

2014

xx

INR bn

Xx%

2020e2017e

xx

2018e

xx

xx

2019e

Value-wise Market Size & Growth

App Downloads

Volume-wise Market Size & Growth

Revenue from Paid Apps


Growth in Time Spent on App Downloads – India

14

Growth in App Usage – Category – Wise Segmentation (2016)

-50

0

50

100

150

200

-xx

% y-o-y Growth

xxxxxxxxxx

xxxx

xxxx

Lifestyle & Shopping Personalisation

GamesNews & Magazines

Health & Fitness

Messaging & Social

Photography

Utilities & Productivity

Business & Finance

Music, Media & Entertainment

• The category that dominates app downloads in India is music, media and entertainment with xx% y-o-y increase in usage

Growing phablet usage and better internet connectivity has triggered the usage of such category of apps

• Indians spent xx hours a day on apps in the first three months of 2017 which is higher than US, UK, Germany and France, where time spent on apps were xx-xx hours per day

Time spent in apps globally increased to nearly xx tn hours in 2016 with an average usage of xx apps per day, where as Brazil, China and India led with over xx apps per day

• xx


Market Overview – Android Apps

15

Mobile Network Distribution When Downloading Apps in India

Xx% Xx%

Xx%Xx%

3G2G 4GWifi

0

10

20

30

40

50

xx

xx

xx

xx

GamesAll Apps

• Despite slow internet connectivity and increasing penetration of 3G / 4G smartphones, majority of Android apps are still downloaded using 2G in India

• Android smartphones users in India have an average xx apps installed, which is much lesser than the global average of xx apps

• In India, xx% of the apps that are downloaded daily are gaming apps

• Indian app downloads from Google Play Store increased from xx bn in 2015 to xx bn in 2016

• xx

Preferred App Downloading Network Average Apps / Games Installed Daily

India Global


India’s Top 10 E -Commerce Apps (2015)

Applications App Downloads User Reviews Average Ratings

Flipkart xx – xx mn xx mn xx star

Myntra xx – xx mn xx xx star

Amazon xx – xx mn xx xx star

Snapdeal xx – xx mn xx xx star

PayTm xx – xx mn xx xx star

Ola xx – xx mn xx xx star

Uber xx – xx mn xx xx star

Jabong xx – xx mn xx xx star

Shopclues xx mn xx xx star

Meru xx – xx mn xx xx star

Popular E-Commerce Android Apps

Note: Based on Data from Google Inc.’s Play Store


India’s Top 25 Android Applications by Usage (Apr 2015)

Rank App Category

1 xx Tools

2 xx Tools

3 xx Communication

4 xx Multiple

5 xx Media and Video

6 xx Social

7 xx Communication

8 xx Communication

9 xx Tools

10 xx Entertainment

11 xx Business

12 xx Communication


Rank App Category

14 xx Lifestyle

15 xx Communication

16 xx Communication

17 xx Social

18 xx Social

19 xx Sports

20 xx Tools

21 xx Shopping

22 xx Productivity

23 xx Media and Vault

24 xx Communication

25 xx Shopping

Popular Android Apps – By Usage


India’s Top 25 Installed Android Applications (Apr 2015)

Rank App Category

1 xx Multiple

2 xx Communication


4 xx Communication


6 xx Social

7 xx Communication

8 xx Shopping

9 xx Communication

10 xx Entertainment

11 xx Tools

12 xx Shopping

13 xx Communication

Rank App Category

14 xx Communication

15 xx Communication

16 xx Tools

17 xx Shopping

18 xx Tools

19 xx News and Magazine

20 xx Shopping

21 xx Casual

22 xx Entertainment

23 xx Tools

24 xx Communication

25 xx Photography

Popular Android Apps – By Installation


Market Segmentation – Category-wise

19

Top Grossing Apps India by Category

Xx%Xx%

Xx%

XX%

XX%

Xx%Xx%

Xx%

Xx%Xx%

Xx%

Xx%

Xx%

Xx%

Xx%

Xx%

Xx%

Sports

Education

Entertainment

Book

Travel

Reference

Medical

News

Navigation

Utilities

Music

Productivity

Photo and Video

Lifestyle

Health and Fitness

Social Networking

Games

• Gaming apps are considered to be the most important driver for app downloadsas well as revenue generation

Top xx popular and best Android games in India for 2017 are Subway Surfers, Clash ofClans, Temple Run 2, Teen Patti, Candy Crush Saga, 8 Ball Pool, Pokemon Go, HillClimb Racing, Doodle Army 2 and Fruit Ninja

In 2016, the phenomenal success of Niantic Inc.’s Pokémon GO further increased theusage of gaming apps in the country

Indian players have started to invest more time in gaming and paying for in-apppurchases, which will drive the gaming app market to grow at a CAGR of xx% to reach~ INR xx bn in 2020

• xx


Market Segmentation – Free Vs. Paid App Downloads

20

Top Grossing Apps Free vs Paid Download in India

Xx%Xx%

Paid Apps

Free Apps Xx%

Xx%

Xx%Xx%

Xx%

Xx%

xx% Xx%

Xx%INR xx

INR xx

INR xx

INR xx

Others

INR xx

INR xx

INR xx

INR xx

Download Prices of the Top Grossing apps

“Others” represent all price points used by 1% of apps

• 17% of the overall apps downloaded are paid apps while xx% are freely downloaded

• Popular paid Android apps are ‘Nova Launcher Prime’, ‘Zooper Widget Pro’, ‘Talon for Twitter’, ‘Relay for Reddit’, ‘PocketCasts’, ‘Power Ramp’, ‘MX Player Pro Manual Camera’, Photo Studio Pro, ‘Unified Remote Full’, ‘Tasker ‘, ‘Business Calender’, ‘Pushbullet’ and others

• Popular paid iPhone apps are ‘Alarmy Pro’, ‘Enlight’, ‘Facetune’, ‘Hot Schedules’, ‘Full Fitness’, ‘Tabs and Chords by Ultimate Guitar’, ‘LightX’ and others

• India’s most popular third-party app store, daily apps download have increased 16% in H1 2016 (Jan – Jun)

• xx


Market Segmentation – Gender-wise Distribution

21

Mobile App Download – Gender-wise Distribution

• In 2016, both in urban and rural India, the share of male internet users is considerably higher than female users

• As a result, the proportion of male users downloading mobile apps is also higher than female users both in case of existing users as well as new users

Xx%

Xx%

Xx%

Xx%

Xx%

Xx%

Male Female

Xx%

Xx%

Mobile App Download – Existing User (2015) Internet Users Share in Urban India (2016)

Mobile App Download – New User (2015) Internet Users Share in Rural India (2016)


Market Drivers

22

Market Size & Growth Forecast (Smartphone Shipment)

0

50

100

150

200

250

xx

Xx%

2015

mn units+Xx%

2020e

xx

2019e

xx

2018e

xx

2017e

xx

2016e

xx

• Mobile application market is directly linked with the development of overall smartphone market and growth in internet users

• India has overtaken the U.S. to become the fastest growing smartphone market in the world, which indicates the fast pace of mobile app adoption in the country

• xx

Growth in Smartphone Market


Market Challenges

23

• Increase in the sales of smartphones has also led to a growth in the number of malicious practices• With personal data being stored and shared across apps and devices, it has become important that performance and security testing of apps on cloud is given

serious attention• xx

Security Concerns


Competition

24

List of Major Players

Name Website

Company 1

Company 2

Company 3

Company 4

Company 5

Company 6

Company 7

Company 8

Company 9

Company 10


Company Information

Products and Services

Category Products/Services

XX XX

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Stock Exchange : Ticker

Key People

Name Designation

Person 1 Chairman and Managing Director

Person 2 Chief Executive Officer

Person 3 Group President

Person 4 Chief Financial Officer

Business Description

• XX

Public: Domestic Company – Company 1


Key Ratios

Particulars 2013 2014 2015 2016

Profitability Ratios

Gross Margin %

Net Income Margin %

EBITDA Margin %

EBITA Margin %

EBIT Margin %

Return on Assets %

Return on Capital %

Return on Equity %

Return on Common Equity %

Liquidity Ratios

Current Ratio

Quick Ratio

Leverage Ratios

Total Debt/Equity

Total Debt/Capital

Interest Coverage

Efficiency Ratios

Total Asset Turnover

Fixed Asset Turnover

Accounts Receivable Turnover

Inventory Turnover

Financial Snapshot

Key Financial Performance Indicators

Indicators Value (13/02/2017)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)

EPS (INR)

PE Ratio (Absolute)

Net Profit / LossTotal Income

0

500

1,000

1,500

0

10

20

30

40

50

60

INR mn INR mn

FY 2016

XX

XX

FY 2015

XX

XX

FY 2014

XX

XX

FY 2013

XX

XX

Public: Domestic Company – Company 1 (Continued)


Key Business Segments Key Geographic Segments

0%

20%

40%

60%

80%

100%

FY 2016

XX%

FY 2015

XX%

FY 2014

XX%XX%

XX%

FY 2013

Xx%

XX%

100%

80%

60%

40%

20%

0%FY 2016

Xx%

Country 1Segment 4Segment 3Segment 2Segment 1

Public: Domestic Company – Company 1 (Continued)

Company 1 has been operating solelyin Country 1 over the last four years


Company Information

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Business Description

• XX

Private: Domestic Company – Company 2

Products and Services

Category Products/Services

XX XX

XX XX

XX XX

XX XX

XX XX

Key People

Name Designation

Person 1 Chief Executive Officer

Person 2 Chief Operating Officer

Person 3 Head – Operations

Person 4 Chief Marketing Officer


Recent Developments

29

Date Category Description Impact

Feb 22, 2017 Collaborations & Partnerships Low

Feb 01, 2017 Product Launch Low

Dec 19, 2016 Regulatory High

Dec 15, 2016 Regulatory Medium

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