Research2guidance has warned mHealth app developers that they will need to adapt their products and services if they want to generate revenue.
The research company, which specialises in mobile, feels the current pay per download business model will soon become outdated.
In a report, it says the the business model will broaden when the enabling technology becomes sufficiently advanced.
It adds: “Sensors and devices that are designed to take advantage of the smartphone interface will facilitate more advanced applications.
"At the same time, healthcare industry players with the capability of providing complex service offering will enter the market.”
The research group says that revenue generation will then come from multiple sources.
For example, it says there could be money to be made in selling devices linked to an app’s functionality.
Or revenue might be generated from service charges for remotely monitoring conditions, treatment and medications compliance.
Research2guidance argues that while advertising may add to revenue streams its impact will not be significant.
It also says that connectivity will not generate money as most smartphone users will already have a data plan in place.