The number of China's mobile Internet users is expected to be more than 520 million by the end of the year and will exceed the number of desktop Web users next year, according to a report by Beijing-based research firm Zero2IPO Group.

In 2011, the revenue from China's mobile Internet industry was 101.7 billion yuan ($16 billion), up 37 percent year-on-year, the report said.

The increase was largely due to bigger investments in added-value mobile services by telecom carriers. In addition, the enthusiasm of third-party providers helped to develop attractive applications, which increased people's willingness to pay for the services.

Mobile gaming is still one of the hottest sectors in the mobile Web industry. The number of mobile gaming players in China will be 178 million this year, with a market volume of more than 18 billion yuan.

The rapid development of the mobile Web market in China has also attracted many venture capital and private equity investors. In the first half of the year, about 30 investments were made in China's mobile Internet industry, with a disclosed investment amount of $378 million, the report said.