Revenues from smartphone apps processors is expected to reach $30 billion by 2018, accoring to Strategy Analytics. 

According to Sravan Kundojjala, senior analyst for Strategy Analytics, the smartphone applications processor market will be boosted by LTE-Advanced, 64-bit, multi-core and semiconductor process technologies. 

Strategy Analytics forecasts that stand-alone applications processor penetration in smartphones will drop to 28 percent in 2018 from 38 percent in 2012. Kundojjala said this can be attributed to an increased push from integrated vendors such as Qualcomm, MediaTek, Spreadtrum, Broadcom and Marvell. 

"Multi-core penetration in smartphone applications processors is forecast to rise from 50 percent in 2012 to almost 100 percent in 2018, by Strategy Analytics estimates," Kundojjala wrote in a report explaining the results. 

Kundojjala said 64-bit chip penetration in smartphone applications processors will rise from 3 percent in 2013 to approximately 75 percent in 2018. 

ARM-based processor lose out. Strategy Analytics forecasts ARM-based chip penetration in smartphones will drop to 83 percent in 2018 from almost 100 percent in 2012. The research firm attributes the drop to concerted efforts by Intel in smartphones combined with the company’s lead in 14 nm and beyond process technologies. 

Strategy Analytics believes that upcoming 3G/4G integrated products from Intel could lift the company’s smartphone applications processor share in the near-term.