Year of the apps

Year of the apps

Companies have woken up to the potential of the 'sharing economy', much enhanced by the arrival of 4G, writes Suchit Leesa-nguansuk

A variety of mobile apps, from lifestyle aids to productivity tools, travel planners to social media, are set to enter the market this year to take advantage of the proliferation of mobile devices and the arrival of 4G technology.
A variety of mobile apps, from lifestyle aids to productivity tools, travel planners to social media, are set to enter the market this year to take advantage of the proliferation of mobile devices and the arrival of 4G technology.

2016 could mark the upward inflection point for app development in Thailand as it continues to gain traction.

It may be the biggest year for the growth of mobile apps and digital content thanks largely to the arrival of fourth-generation (4G) wireless broadband technology, says Sompoat Chansomboon, director of business innovation and DTAC Accelerate at Total Access Communication Plc (DTAC).

This will be the year of the enterprise mobile app as companies move to take advantage of the proliferation of mobile devices with apps designed to improve the productivity of mobile workers.

From lifestyle aids to productivity tools, travel planners to social media, apps that motivate individuals to improve their lifestyles are also enjoying unprecedented growth.

Apps for smartwatches, designed to bring two or three key tasks from the main app to your wrist, are another rising trend.

As of December 2015, Thailand had 83 million mobile subscribers, 5.4 million fixed-line telephone customers and 39.4 million internet users, according to a report by the National Broadcasting and Telecommunications Commission.

Global IT research firm IDC says Indonesia, Malaysia, the Philippines, Thailand and Vietnam were the five fastest-growing markets in Southeast Asia in terms of both app downloads and revenue in 2014.

"Thailand is Asean's second-largest smartphone market. The country is among the world's top 20 largest markets in terms of app revenue," according to the IDC report.

Thailand's mobile content and apps were worth US$600 million in 2014.

Mr Sompoat says the availability of 4G high-speed wireless broadband service will broaden the ranges of apps and services.

Companies everywhere are jumping on the "sharing economy" bandwagon, a type of business built on the sharing of resources that allows customers to access goods without ownership.

The sharing economy is the latest example of the internet's value to consumers. This emerging model is now large enough and disruptive enough for regulators and companies to have woken up to it. That is a sign of its immense potential.

Mr Sompoat says the number of people using sharing-economy apps like Uber and GrabTaxi is forecast to keep growing at a fast pace, as technology has lowered the barriers so that anyone can provide services blurring the line between personal and professional.

Consumers benefit from lower prices and higher quality as well as unprecedented convenience.

Companies are also soliciting user-generated content for their businesses. For instance, Storylog, another part of the DTAC Accelerate project, is a storytelling social network where everyone can share their stories.

Mr Sompoat says virtual reality (VR) technology apps for the mobile industry have bright prospects over the next few years, thanks to aggressive moves by Facebook and Samsung in this market.

VR technology brings a new user experience, especially VR gaming and sports. The technology, insurance, health and educational sectors are increasingly adopting VR technology, he says.

Mr Sompoat says the banking and financial sector is offering financial technology, also known as fintech, this year, particularly investment-related apps.

Fintech is an industry composed of companies that use technology to make financial services more efficient.

In Hong Kong, there is peer-to-peer lending service app, Monexo, an online marketplace that brings together lenders and borrowers, making banking in Hong Kong more efficient, he says.

Another popular mobile app is ClaimDi, developed by Thai start-up Anywhere 2 Go. The app provides roadside assistance for drivers, covering towing, fuel, tyres, jump-starts and mobile mechanics.

Mr Sompoat says health-related and fitness apps are also gaining popularity, thanks to growing health consciousness and greater development of user interface and wearable technologies. Educational and classroom-related apps are also experiencing rapid growth.

"Mobile users have an average of 30-40 apps on their phones and have them replaced when interesting apps come on the market," says C.R. Venkatesh, managing director and chief executive of Dot Com Infoway, an India-based organiser of the Global Mobile App Summit & Awards 2016.

The faster wireless internet connectivity will lead to opportunities for a range of mobile apps offering interactive games, video conferencing or communication and streaming, location-based services, transport and finance apps.

With 60,000 mobile developers, Thailand's mobile app market is ranked third in Southeast Asia, behind Indonesia and Vietnam, says Mr Venkatesh.

Applift, a mobile app marketing platform, forecasts Thailand's mobile game market will reach US$211 million this year, and rise to $300 million in 2017, up from $93.5 million in 2014.

About 60% of revenue will come from mobile phones by 2017, up from the current 40%. "This makes Thailand the 20th largest games market in the world," says Mr Venkatesh.

As of last March, Thailand's mobile penetration rate stood at 180%. About 75% of mobile internet users are aged under 35 and use apps for gaming, videos, music and e-commerce.

Mr Venkatesh suggests Thai mobile app developers focus on monetisation, noting localisation is the key success factor for developers.

Developers should also offer customers local payment methods on mobile devices, he adds. At least 60% of apps' revenue comes from advertising, with the rest from charges for apps, selling items or additional charges for some services although the app is free (the freemium model).

Pranab Punj, vice-president for global marketing of Vserv, an India-based mobile marketing firm, says smartphone users in Thailand spend on average of 160 minutes per day on their mobile devices, the second highest in Southeast Asia after Malaysia.

In comparison, Filipinos spend 140 minutes a day on their mobile devices and Indonesians 129 minutes.

The average data consumption of Thais is almost 60% higher than that of any other Southeast Asean country.

The availability of 4G wireless broadband service is expected to boost the use of mobile data among Thais, especially demand for video content.

There is also a steady rise in demand for social media, music, gaming and news. But video streaming and mobile gaming are experiencing a sharp increase in usage, says Mr Punj.

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