Content
Mobile Apps: To Develop or Not To Develop?
December 16, 2022
12 min
The mobile application market has seen tremendous growth over the past decade, reshaping the way people interact with technology. From entertainment and communication to business and education, mobile applications are a cornerstone of the digital world. With the rise of smartphones, mobile applications have become an integral part of daily life. In this article, we’ll explore the mobile app market growth, key app market trends, and mobile app development statistics that are shaping the future of the mobile applications market.
The mobile app industry growth has been nothing short of impressive. According to Statista, the total revenue is expected to show an annual growth rate (CAGR 2022-2029) of 7.48%, which is a rather considerable amount. It will result in a projected market volume of US$781.70bn by 2029.
This tremendous growth is driven by the increasing use of smartphones, the rise of mobile-first businesses, and the ever-expanding digital economy.
One of the primary factors fueling this growth is the growing dependency on mobile devices. As smartphone penetration continues to rise, the demand for mobile applications across various sectors is skyrocketing. Consumers and businesses alike are looking for ways to enhance convenience, accessibility, and productivity, which mobile apps are perfectly positioned to offer.
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Considering the mobile app industry has a rapid pace of development, its structure is becoming more and more complicated. So, let’s view the app market categories.
Even though some devices already have pre-installed apps, the largest share is downloaded from mobile app stores. Undoubtedly, Google Play Store for Android devices and the Apple App Store for iOS devices are the absolute leaders of the app market. Besides, Amazon Appstore is the third promising app distributor.
Google Play holds the largest share of the app market structure, according to the downloads number. For instance, Google Play Store holds almost 78% of the market by revenue. However, the share of IOS mobile app downloads is estimated to increase in the future.
The mobile app market is rather diverse. A wide range of businesses invests in app creation to strengthen brand awareness, improve customer loyalty, grow sales, etc. That is why the spectrum of app categories includes games, social networks, entertainment, photo & video, music, productivity, books, education, sports, health, shopping, weather, mobile eCommerce apps, and others. Nevertheless, viewing the app market as a business opportunity, let’s discuss the app niches that generate the most revenue and have the highest growth potential.
Games are definitely the most profitable niche in the mobile app market. The share of game applications is considerably bigger than others. Besides, it also tends to have stable growth. Social networking and entertainment are in the top three most profitable app mobile categories, having $39,594 million and $26,982 million in revenue respectively. If you are considering entering the global mobile apps market, you may also view photos & videos, lifestyle, music, or productivity categories that are also in the list of most profitable apps.
In-app ads are an effective mobile advertising strategy applied to bring traffic, leads, and revenues by marketing on apps. Mobile app advertising is a digital marketing tool that is highly popular nowadays. In 2022, the global mobile ads spending is to reach $336 billion, which is 14% more than the previous year. The in-app advertising value is planned to increase by an additional 7.5%, hitting the level of $362 billion. That is why mobile advertising is another promising income source for your app business model.
As the number of B2C apps is considerably higher than the number of B2B applications, user behavior patterns are an essential issue to analyze. One of the positive trends in 2023 for app businesses is the increased time spent on mobile. For instance, in 2028, global consumers are estimated to spend 5.5 trillion hours on mobile devices, which is almost twice as much as in 2021. Hence, it will create beneficial conditions for the app businesses’ development from a long-term perspective.
Users spend their time mostly in social applications, approximately 55 minutes per day. The average daily time spent, playing games on mobile apps is 16.7 minutes. Shipping, sports, and entertainment capture slightly more than 13 minutes of users’ daily attention. The top list also includes the travel and finance categories.
Launching a new application to the market, you should also consider that the average time spent on mobile apps differs from season to season. For instance, the 4th quarter is the most favorable for the app owners. Probably, it deals with unfavorable weather starting in October, which motivates people to stay at home and spend time on their mobile applications.
Summing up, the mobile app market has favorable prospects for successful development in 2024. However, at the same time, an effective app business also requires a comprehensive and coherent marketing approach.
AI and machine learning are significantly impacting the mobile applications market. These technologies help deliver personalized experiences by analyzing user behavior, providing intelligent recommendations, and even enhancing app security. For instance, AI-powered apps can adapt to users’ preferences, making them more intuitive and effective.
The rollout of 5G networks is expected to bring massive changes to the mobile app industry. With 5G’s ultra-fast speeds and lower latency, mobile apps will be able to offer more seamless experiences. Whether it's for gaming, augmented reality (AR), or video streaming, 5G will significantly enhance app performance and unlock new possibilities for app developers.
AR and VR are rapidly gaining popularity in the mobile app market. AR-based apps are revolutionizing industries like retail, real estate, and gaming. By overlaying digital elements onto the real world, AR provides more interactive and engaging user experiences. VR, on the other hand, is transforming gaming and entertainment, offering immersive virtual environments.
Subscription-based mobile apps are becoming increasingly popular as users shift away from one-time purchases in favor of ongoing services. From fitness tracking apps to video streaming platforms, subscriptions are now the preferred monetization model for many app developers. This trend is particularly evident in entertainment, lifestyle, and fitness industries.
Cross-platform development tools are gaining traction, allowing developers to build apps for both iOS and Android simultaneously. Frameworks like React Native and Flutter are empowering developers to reach a wider audience while maintaining cost-effectiveness and faster time-to-market.
The future of the mobile app market looks incredibly promising. Innovations in technologies like 5G, AI, AR, and VR are expected to continue shaping the way apps are developed and used. As businesses increasingly adopt mobile-first strategies, the demand for customized mobile apps will grow across all industries. Furthermore, the focus will shift towards creating more immersive, user-friendly, and efficient apps to keep users engaged and meet their evolving needs.
At Promodo, we understand the rapidly evolving mobile app market and the challenges that come with making your app stand out in a crowded digital landscape. As a digital marketing agency with over 20 years of experience, we specialize in helping businesses increase visibility, drive downloads, and achieve sustainable growth through tailored mobile app marketing services.
Our mobile app marketing services are designed to meet the unique needs of your app and target audience. Whether you’re launching a new app or seeking to boost an existing one, we provide a comprehensive strategy that spans the entire app lifecycle. Here's how we approach the process:
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Partnering with Promodo means working with a team that is dedicated to your app’s success in the ever-growing mobile app industry. Let us help you take your app to new heights and achieve sustained growth in the competitive mobile app market.
Team Lead of Content for promodo.com
Content marketing manager at Promodo with 7+ years of writing.
When creating valuable business content, I always seek fresh data, interesting facts, the expertise of professionals, and meaningful insights to bring relevant ideas to the audience. I believe that good content can enrich the experience of marketers, empower business owners to make data-driven decisions, and enhance companies in growth.
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