The App Market Boom; Impacts of Covid-19, Trends and Future Projections
The mobile app industry continues to grow at impressive rates, and future projections by a number of companies suggest there is no end in sight. Correspondingly, the number of mobile app developers has also seen immense growth, with huge growth in the number of mobile apps available in the market.
The Hybrid Trend
The AI and ML Trend
Companies are continuously developing, improving, and implementing artificial intelligence in smartphones and tablets to empower mobile application experience while increasing the performance of mobile devices as a whole. AI essentially allows mobile apps to get data-driven insights generated by users, helping to improve the decision-making capabilities of the user. AI is a key part of smartphone development in recent years, with large manufacturers leveraging machine learning and AI into the development of their products, providing increasing opportunities for the growth of the market. A recent study found that roughly 200 mobile app companies will include AI and ML in their products to improve various features such as cameras and security applications.
Impact of the Coronavirus-19 Pandemic
The COVID-19 pandemic gave the world a different view of the mobile app industry, many industries like education, retail, data tracking (and many more) started to approach app development companies, this demand meant app development companies made changed to expand business operations. With a huge amount of in-person meetings, events, and other activities canceled in many parts of the world in line with coronavirus restrictions, online activity has surged, and many businesses have decided to make their online services easier to use and more accessible with an app, as well as new businesses branching out into the growing sector. As a result of the cancellation of normal activities, users are transitioning to apps for their daily tasks and services, research has found that on average mobile users spend 87% of their time in apps, and only 13% on the web. The global pandemic and subsequent lockdown had a huge impact on consumer behavior, reshaping the digital economy. On average, apps experienced a massive increase in usage, while the budget for mobile advertising is shrinking, dropping CPM by 14.8%.
Huge increases in education apps have been seen over the pandemic period, most notably in Australia, the United Kingdom, and Brazil.
Growth in Education App Downloads (Peak Lockdown Month vs January 2020) | Source: App Annie via Hootsuite/We Are Social
A huge surge in Medical App Downloads has been seen from January 2020 to the peak lockdown month, most notably in South Korea, India, and Spain, with a worldwide increase of 65%.
Growth in Medical App Downloads (Peak Lockdown Month vs January 2020) | Source: App Annie via Hootsuite/We Are Social
Immense growth has been seen worldwide and across the top countries in consumer spend over 2016-18, with further projections promising increasing growth.
Top Countries by App Store Consumer Spend | Source: App Annie
As expected, the gaming app market has continued to boom and stay at the top of the market, although growth rates from shopping and entertainment are considerably higher.
Top iOS App Store categories | Source: Sensor Tower (2020)
The App Market has seen a huge increase in activity and profitability over the past 3 years, with app revenues increasing by 78% and is expected to increase by an additional 48% from 2020 to 2024. The global mobile application market was valued at $106.27 billion in 2018, expected to grow to $407.31 billion by 2026, at a CAGR of 18.4% (2019-2026). The major driving forces of growth in the industry are the upwards trends of a rise in the use of various devices and an increase in customer base, as well as a growth in paid health and fitness apps, enterprise apps, and in-app purchases in the gaming sector.
Worldwide Mobile App Revenues (2014- 2023) | Source: Statista 2020
In short; there has never been a better time to expand or build your business with an app.
ProTeams has an extensive portfolio of mobile app and software development projects, we put this experience towards helping businesses achieve their most ambitious goals with the right technological capabilities. Visit the Proteams site to find out more about how we can create quality software platforms to transform your business.
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