Mobile applications will experience dramatic growth globally over the next 12 months, according to predictions released by IHS iSuppli, a major internet research company.

The firm estimates that the sector’s total revenue will increase by 81.5 per cent over the course of the year, resulting in income that surpasses $3.8 billion. The firm believes, however, that the driving force behind this massive expansion is the growing popularity and predominance of freely downloadable mobile applications.

HIS iSuppli refers to this as the "freemium" business model, in which mobile apps are available free of charge, but the company charges a separate fee to access premium content, services or enhanced usability.

Mobile app developers have seen an impressive rise in revenue over the course of the past two years, including a 160 per cent increase from 2009 to 2010, when revenue rose from just $828 million to $2.2 billion.

Google’s Android is seeing the most rapid growth, and the Android Market has now become the third most popular place to purchase mobile apps.

Android’s overall revenue in 2010 skyrocketed by a staggering 862 per cent and it now controls more than 4.7 per cent of the total application development market.

This represents a key rise from 2009, when its market share stood at 1.3 per cent. Most observers predict that Google Android will continue to chip away at the lead still enjoyed by its largest competitor, Apple.

Blackberry App World is the second most popular provider of mobile applications and experienced 360 per cent growth last year.

Source: http://www.bluhalo.com/news/view/8413/mobile-applications-market-set-to-experience-major-growth