Economy of Mobile Application market and its impact

 Hemendra Singh
  21st-Jun-2018
 1878
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There was an era when having a website was a matter of pride. Websites were used to promote the brand, advertise and offer every single information regarding the product. But in today’s scenario, mobile applications have taken this place.

Be it any industry such as retail, healthcare, entertainment, food, restaurants, travel, education, e-commerce, finance banking, real estate, insurance, events; it is important to focus on mobile app development. Mobile application usage has grown significantly in these years.

Usage of mobile applications is done for various reasons by users

· Ordering food

· Social connectivity

· Booking travel tickets

· Booking hotels to stay

· Editing images

· Counting heartbeats

· Counting steps

· Buying stuffs from e-commerce sites

· Transfering money online

· Playing games

Let us focus on some statistics that will define the economy of mobile apps:

As per a report generated by App Annie, the global app economy is expected to double till the year 2020. There are 197 billion mobile applications in this globe.

The number of app downloads is almost doubling every year. The reason behind this is, every small to large business is attempting to have their own mobile app.

The reason can be anything such as direct marketing, branding, advertising, access to information for 24x7.

The highest downloaded mobile applications in the year 2017 were Snapchat, Instagram, facebook messenger, Google maps, Pandora, etc.

If we consider the speed of app development and app downloads, it is clear that app market is going to have a higher revenue in future too.

The gaming industry is expected to touch $74.6 billion revenue and it will increase to $101 billion by the end of 2020. There are thousands of amazing games on this globe.

Pokemon Go, Asphalt 8, Call of duty, Candy crush saga, are some of the popular games. These game developer companies have used high-level graphics, high definition features, augmented reality, etc. to offer such excellent games.

Another reason behind this immense growth of app economy is the benefits of mobile applications.

App development company offers excellent mobile applications with great quality and less cost. The turnaround time is lesser as compared to in-house development.

Around 1.5 billion smartphones were sold in the year 2016. More the smartphones, more the applications. More the users, more the app downloads.

The world is getting digital every day and people are adapting to new technologies. Hence, the number of downloads is increasing every month.

Latest technologies such as artificial intelligence have completely changed the image of mobile applications. It has added features such as sound recognition, face detection, fingerprint senses, heartbeat senses, etc. that are helping users in a great way. Users are overwhelmed with these amazing features.

According to a report generated by a research company Tech Crunch, The global app economy will be worth $6.3 trillion by 2021. There are 3.4 billion app users who spend $379 on apps individually. This number is estimated to grow and become $1008 in the year 2021.

More than mobile games, the largest share of mobile app economy is through mobile commerce. In 2018, the average amount of money spent by mobile app users on mobile commerce is $344. This amount is estimated to grow and reach to $946 by the year 2021.

Games are continuing to drive revenue in app stores, growing from $50 billion in 2016 to $105 billion in 2021. Apps other than games have their revenue tripled. It was $11.5 billion in 2016 to over $34 billion in 2021. This share is filled with apps such as video, music, dating, education, and productivity.

Future impact of technologies on app development:

Artificial intelligence uses user data and to drive user engagement and business growth. It studies user behaviour and offers more personalised experience to users. End users want intuitive experiences with machine learning too.

No mobile application will sustain in the market if it does not have IoT support. Mobile app developers are modifying the applications in a way that they easily integrate with other devices.

The demand for developers who can work on IoT apps is increasing every day in the market. These future impact of technology on app development will surely increase the revenue and will open up new career opportunities for newcomers. Also, augmented reality, virtual reality, wearable apps, etc are the technologies that are growing immensely faster.

User now a days are adopting the latest technology and are ready to pay a significant amount for better technology. In such case, app development economy will experience a raise as it will involve all these technologies.

Conclusion:

According to the statistics we observed above, mobile app development companies are going to gain good revenue in upcoming years. It will add a new line of service and will definitely increase the employment for people.

Software development and mobile application development as a career are preferred by most of the youngsters. Since it will offer more and more employment, it will add to world’s economy as well.

Big names such as Google and Amazon are offering training to the students who wish to make a career in this field of mobile app development.

Every mobile app development company refer all these stats and plan their strategies accordingly. Applications are a form of earning too. It not only reduces the cost of marketing and other things, it also increases the revenue.

Domain: Business
Category: Sales & Marketing
Contributing Organization:
Contact Person Address: hemendra@theninehertz.com

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