A new report has found the app industry in Australia is expanding rapidly with a 20 per cent increase in jobs in the space of just two years, now employing around 136,000 people.

The US based Progressive Policy Institute says New South Wales leads the pack but Queensland is not far behind because of its wealth of highly skilled people.

The local industry is forecast to be worth around $2 billion this year and IBISWorld senior industry analyst Liam Harrison tells Mark while it is becoming an increasingly crowded field the payoffs can be huge.

Download this podcast here