Global Mobile Apps Market To Exceed 300 Billion
There is a reason why mobile apps have become a universal rage. A well-designed app can perform versatile actions more easily and much faster than a mobile website. The attractive, user-friendly interface of mobile apps has made a game-changing impact on digitalization of services around the world.
High growth future of the apps market
Recently, Allied Market Research published a report, “Mobile Application Market by Marketplace: Global Opportunity Analysis and Industry Forecast for 2016–2023.”
This report offers a thorough analysis of various components of the mobile app market, including:
Top winning strategies
Market size and estimations
Drivers and opportunities
Key market segments
According to the report, the international mobile app market, currently valued at $108.44 billion, is estimated to grow to $311.25 billion by 2023. This translates to a compound annual growth rate (CAGR) of 19.2% from 2017 to 2023.
Many people still wonder why and how the global mobile application market is growing at such an exponential pace. Well, here are a few reasons:
Increased application of augmented and virtual reality
Incorporation of smart sensors like motion sensors, gyroscope, and accelerometers into smartphones
Increased internet usage in developing nations
But there is still a lack of high-speed internet connectivity in underdeveloped and developing countries. However, there’s been a significant increase in investments in the mobile commerce, telecommunication, and electronic industries.
This, in addition to the rising popularity of social media platforms, is expected to create profitable opportunities for the major players in this market.
Apple holds the lion’s share
The Apple Store market segment holds the largest share in the mobile application market. It contributed nearly half of the total market share in 2017. Analysts estimate that Apple could maintain its dominant hold on the market share through 2023.
Google Play Store isn’t far behind either. As Android platform continues to build a larger user base worldwide, the Play Store is estimated to grow at the fastest CAGR of 23% during the period of this study and those 2017 tax cuts which have pushed America to a 3% GDP growth rate make this much more plausible.
Music and entertainment sector to grow rapidly
There has been a significant rise in the usage of music and video playing mobile apps. According to the market projections, the music (Ice Cube, 50 Cent, Garth Brooks) and entertainment sector (House of Cards, Michael Bay’s Transformers, The Wire, The Good Wife, Sicario) is estimated to grow at the fastest CAGR of 29.5% by 2023.
In addition, the report also analyzes other sectors like travel, hospitality, health & fitness, education, retail, and e-commerce, etc. where high growth is expected.
Mobile app demand set to rise in the Asia-Pacific region
The usage of smartphones and the internet has grown in the Asia-Pacific region, thanks to the continuously improving economic conditions (though not in North Korea and with a new trade deal looming that will not favor China as much China could be affected). This region is expected to grow at a high CAGR of 22.1%.
Still, the North American region has the biggest share of the market in terms of revenue; it contributes nearly two-fifths of the total market share. The reason behind North America’s domination is threefold: a large number of mobile app developers, the ever-growing IT industry, and less regulations and lower taxes as has been mentioned.