Gross mobile app spend will exceed $166 billion in 2017 with gross consumer spend accounting for $65 billion, according to App Annie.
The analytics firm said the other $101 billion will come from in-app ad spend. Games will account for a lot of the app spend, though dating and media apps will start to grow more rapidly.
App Annie also predicts that Pokemon GO will not see any clones entering the market. The only location-based augmented reality games will be developed by Niantic in partnership with other brands.
However, other apps will begin to integrate AR to give them an interesting edge. This will be particularly true for apps that require a "physical presence".
As for VR, App Annie predicts that mobile headsets will vastly outpace PC VR due to its low cost and "wider gamut of use-cases".