The modern mobile app market is growing faster than ever before. New and more advanced mobile applications are appearing in the market, and the number of mobile apps is ramping up daily. As a result, the revenue generated by the global mobile app market is skyrocketing.
Top Mobile App Market Trends
Companies are focused on creating a great experience for customers. According to App Annie, a business intelligence company and analyst firm, the mobile app industry accounted for $41.1 billion in gross annual revenue in 2015, and this number is anticipated to reach $50.9 billion. Statista, an online statistics, market research and business intelligence portal, reports gross annual revenue is expected to account for more than $189 billion by 2020.
- According to Forrester, an American market research company that provides advice on the existing and potential impact of technology, as of 2016, 18% of companies surveyed considered mobile devices as change makers to their businesses. The number of these companies is projected to exceed 25% by 2018.
- When it comes to consumers, they are evolving with more rapid advances as compared to businesses. Many users view the mobile internet as a necessity.
- Mobile app giants, Android and iOS, play a dominant role in the global smartphone market. According to Gartner, the world’s leading research and advisory company, by quarter 3 of 2016, 87% of smartphones sold across the world were Android. This number was 3.1% lower in 2015. As for iOS market share, it made up 11.5% – 2.5% less as compared to 2015.
- Apple and Google represent the largest and most popular app stores. The App store boasts nearly 2 million of mobile apps. Google Play boasts more than 2.2 million apps. These numbers are expected to grow in the years to come.
- Since 2016, the monthly revenue generated by more than 25% of iOS developers have made up more than $5.000. As for Android developers, this number is 16%.
- Statista reports that, in 2016, a Windows Phone app brought about $11.400 on average on a monthly basis. iOS app fetched $800. Android generated $400 in average monthly revenue. 75% of developers are focused on increasing their revenues by developing Android-based products.
- According to App Annie, mobile games generated less than 50% of total mobile app revenue in 2011. In 2015, they accounted for 85% of mobile app market revenue. This number makes up a total of $34.8 billion worldwide.
- The modern mobile app market boasts the following popular app monetization models: direct sales, freemium (a combination of “free” and “premium”), subscription, in-app purchases, crowdfunding, and sponsorship.
Monetization through advertising is the most popular monetization model. Based on a report by IHS Markit, a world leader in critical information, analytics and expertise, in-app advertising will fetch 53.4% billion in total revenue on a yearly basis. This can be compared to nearly 63% of mobile display advertising revenue.
The global mobile app market has witnessed a surge in the number of smartphone users. Taking into account the current market trends, one can tell that the market will go on generating higher revenue in the coming years as well. So, all is yet to come.
Which one is the most important mobile app market trend to you? Don’t hesitate to share your comments below.