The global mobile app market value is expected to reach $407.31 billion by 2026, growing at an impressive CAGR of 18.4%, according to Allied Market Research.
Furthermore, in 2023 mobile apps are expected to generate over 935 billion U.S. dollars in revenue through in-app advertising and paid downloads. The major factors driving the mobile app market growth include increase in the use of mobile devices, smart wearables, flourishing eCommerce customer base, enhanced focus on healthcare, fitness, enterprise, entertainment and gaming apps. Also, in recent years disruption caused by digitalization and inclination towards advanced technologies like the Internet of Things (IoT), Machine Learning (ML), etc., has fueled exponential market growth and opened new avenues for business owners who wish to tap into the thriving global app market.
The Key Influencers
Surge in internet and data usage
Rapid penetration of the internet and increase in data usage has been one of the key factors influencing the market growth in most developing nations. Increasingly the internet has become the primary medium of communication for users across devices. It is cost effective, requires less effort and offers a faster way to communicate. The number of global internet users has surged over the past year, for instance there were 4.13 billion users in 2019, which is up from 3.92 billion in 2018.
Emergence of collective platforms
Organizations worldwide are spending huge amounts in developing their own applications since available applications are costly in the long run or lack certainty. Most apps require updating from time to time for a flawless experience, which again consumes a lot of time and money. Therefore, many organizations are putting their money in collaborations that offer users a common platform which significantly reduces the time and cost to develop an app.
Disruption caused by ML and AI
AI is becoming an integral component of mobile phones. Leading mobile phone brands like Samsung, Apple, etc., are integrating AI and ML into the smartphones they are developing, thereby providing ample scope for the growth of the app market. As per a recent forecast the global AI software market will experience tremendous growth in the years to come, with increase in revenues from approx 10 billion U.S. dollars back in 2018 to around 126 billion by the year 2025. Increasingly brands are implementing AI in mobile phones to augment the performance of mobile apps across various devices. Also, AI powered apps are attaining centre stage as it allows brands to get actionable insights about user behaviour which is imperative for making informed business decisions, thereby opening up numerous possibilities for the mobile app industry.
The Technological World Is Progressing, So Should You
By the end of last year, there were around 1.84 million available apps on iOS app store and close to 2.57 million on Google Play Store. Well this indicates that the mobile app market is growing exponentially and if you are considering developing an app anytime soon, you definitely need to be headed in the right direction. Here are a few stats that will help you tap into the mobile app market with ease.
mCommerce is on the flourishing
Shopping on-the-go trend is already catching up with the rise in the number of mobile users. As of january 2020, around 4.54 billion people globally were active internet users which is approx 59% of the world population. Out of this 3.5 billion people own a smartphone. Shopping using a smartphone is popular among users as it is convenient and comes with a host of shopping deals and discounts. Also, offerings like Google Pay and Apple Pay are promoting mobile commerce making it essential for business owners to integrate mobile first payment gateways into their mCommerce applications.
Target Generation Z
As per reports, it is estimated that there will be around 6.95 billion mobile users globally. The future is all set to be ruled by the next gen mobile users in the ages 16-24, those who are raised in the connected era. As per recent studies, generation Z accounts for as much as around 40% of all the users by 2020, which is a huge share. They spend 20% more time on an average on the apps and engage 30% more than other users. Also, the generation Z prefers videos and if you are a business owner who wishes to attract the next gen users it is best to come up with an app strategy that leverages video elements.
Pay attention to design
Apps in the future will leverage AI combined with predictive analytics to offer great UI and UX. Apps that offer functionalities and features that are appealing and easy to use will attract more users. Therefore,developing an app that is visually appealing with clean design and UI can help reduce the attrition rate significantly. Mobile apps with poor UI and UX can be a deal breaker for a brand’s online success. In fact, 78% of mobile users prefer to use a mobile app to access an eCommerce site rather than a PC since apps have fewer steps till checkout and offer a more seamless user experience.
But don’t leave performance
Well, design is important and so is app performance. It is imperative to pay heed to your app’s performance. Your mobile app users will continue using your app only when it offers unmatched performance, runs efficiently and great functionality. As per a report by AppSamurai, app freezing leads to as much as 76% uninstalls, while app crashing accounts for around 71% unistalls. The report also highlighted that approx 59% users uninstall an app if it has slow responsiveness. Also as per Google, 52% of users say that a bad mobile experience can make them less likely to engage with a brand in future.
The future is mobile
It is no secret that the mobile industry goes through constant transformation. Lately mobile phones are moving out of pockets and taking the shape of wearables. As this trend gains momentum, apps will need to evolve further. Apps are now being developed to adapt to changing screen size, offer faster loading speed and data transmission and so much more. Lately, apps are leveraging advanced technologies like AI, ML, 5G and Blockchain. As the mobile app industry embraces IoT, it is quite obvious that the demand for cloud-driven apps will experience a surge. In fact, as per Gartner the global public cloud services market is expected to grow 17% i.e. $266.4 billion this year.
Conclusion
The mobile app market is thriving and the forecasts show no signs of any possible slow down. If you are a business owner and wish to expand your customer base, market reach and brand visibility, this post will surely help you make an informed move. Not only now, but for years to come the focus will be on delivering value to customers through best-in-class apps that offer great user experience. If you have any other insights please do share it with me in the comment section below.
Author Bio
Nathan Smith is a Senior developer by profession at TechnoScore, a leading web and app development company with a global reach. He has sound knowledge of all the latest technologies and trends imperative for delivering cutting-edge mobile applications that stand out.
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