The mobile app market has advanced significantly over time and is increasingly important in our daily lives. As we are in 2023, the mobile app industry continues to evolve rapidly, and it’s essential to stay updated on the latest trends and statistics. The global epidemic in recent years has increased the uptake of mobile applications, with people increasingly depending on them for work, leisure, and communication. As a result, the mobile app market is anticipated to expand even more in the upcoming years.
This blog will explore the most recent trends and data in the mobile app industry, which are expected to have an impact on the sector’s future. We’ll look at the well-liked app categories, financial structures, user behavior, and much more. This blog will offer insightful information on what the mobile app business may expect in 2023 and beyond.
According to a report by App Annie and Statista, in the period between 2019 and 2020, there was a daily average of over 250 million app downloads, which amounts to more than 91 billion downloads annually.
Experts predicted that this number would continue to grow, and by 2024, it may reach as high as 500 million daily downloads, which would translate to 184 billion app downloads at the end of that year – twice the number recorded in 2020.
According to a report by Business of Apps, an interesting fact is that 98% of the revenue of Google Play comes from free apps. Although they do not require any payment to be downloaded, free apps serve as a marketing tool and can generate revenue through advertising. For instance, McDonald’s frequently creates gaming apps aimed at children to promote their brand. Therefore, free apps and advertisements are surprisingly useful for generating revenue.
As of 2022, the global consumer expenditure on apps has reached $129 billion. This is a massive sum, but it represents a slight decrease from the previous year when consumers spent approximately $133 billion on apps. In other words, there has been a 3% reduction in consumer spending on apps in just one year.
Year | Total App Revenue (in billions USD) | iOS App Revenue | Google Play App Revenue |
2016 | $43.50 | $28.60 | $15 |
2017 | $58.10 | $38.50 | $21.20 |
2018 | $71.30 | $46.60 | $24.80 |
2019 | $89 | $58.40 | $30.60 |
2020 | $111 | $72.30 | $38.60 |
2021 | $133 | $85.10 | $47.90 |
2022 | $129 | $86.80 | $42.3 |
Business of Apps reports that mobile app consumers are expected to spend an impressive amount of $34.1 billion in app stores in Q1 2023, setting a new record for the highest quarterly spending. Furthermore, estimates suggest that consumer spending on apps will continue to increase, potentially surpassing $270 billion by 2025.
Sensor Tower Store Intelligence data suggest that there will be a surge in global user spending on mobile apps on both Apple’s App Store and Google Play in the coming years. By 2023, the estimated spending is $156 billion, marking a significant growth of 120 percent from 2018, with a compound annual growth rate (CAGR) of 16.8 percent over the next five years.
The projections also suggest that Apple’s platform will see revenue climb to $96 billion by 2023, an impressive increase of 104 percent from 2018’s total of $47 billion at a CAGR of 15.6 percent. While Google Play is expected to reach $60 billion in worldwide spending, representing a growth of 140 percent from 2018 at a CAGR of 19 percent, this will still be significantly less than Apple’s platform, which is projected to capture almost 62 percent of all revenue generated by the two stores.
As the mobile app industry continues to profit from its creations, it’s important to acknowledge its success with its dependence on user downloads. Nowadays, mobile app users are a significant demographic.
CleverTap reports that mobile applications have greater engagement rates than mobile-optimized websites or desktop web browsing and conversion rates up to three times higher, ranging from 100% to 300%. While it is advantageous to have a website that is optimized for mobile devices, current statistics demonstrate that mobile apps outperform even the most effectively optimized websites in terms of user engagement and conversion rates. This considerable difference in conversion rates highlights the fact that creating a valuable app can result in significant long-term benefits.
The mobile app industry’s success relies on app downloads, which are ubiquitous, and the research shows the following data:
As per the data provided by PewResearch, the typical smartphone user in the United States:
The table below presents an estimation of the growth of smartphone usage since 2016:
Year | Number of Smartphone Users | Growth Over the Previous Year | Percentage Growth Over Previous Year |
2016 | 3.668 billion | – | – |
2017 | 4.435 billion | + 767 million | + 20.91% |
2018 | 5.095 billion | + 660 million | + 14.88% |
2019 | 5.623 billion | + 528 million | + 10.36% |
2020 | 5.924 billion | + 301 million | + 5.35% |
2021 | 6.259 billion | + 335 million | + 5.65% |
2022 | 6.567 billion | + 308 million | + 4.92% |
On average, Americans check their phone every 10-12 minutes, at least 96 times a day. However, statistics suggest that 66% of Americans check their phones up to 160 times a day.
Americans typically spend a minimum of 5 hours on their phones daily, with nearly half the population spending between 5-6 hours and 22% spending 3-4 hours daily. Less than 5% of Americans spend less than an hour on their phones each day.
A significant majority of smartphone users, accounting for 62%, would not download an app to complete a transaction. Of the remaining 38%, half would uninstall the app once their purchase is completed.
Americans still prefer desktops over mobile devices by 1.87%, spending an average of 3 hours 34 minutes on desktops and 3 hours 30 minutes on mobile devices, despite mobile devices being more popular worldwide.
According to a report by IDC and StatCounter, the significance of OS market share lies in its ability to aid in the assessment of the favored platform for mobile applications. Understanding the market share of operating systems can provide valuable insight into which platforms are more commonly used, which will help in making informed decisions about which systems to prioritize when creating/investing in mobile applications.
As of January 2023,
In the US market, iOS leads with a market share of 55.85%, while Android claims a market share of 41.89%.
In 2022, the worldwide market for mobile applications was valued at USD 206.85 billion, with projections indicating a compound annual growth rate (CAGR) of 13.8% between 2023 and 2030. As we move forward, this sector is predicted to continue expanding at a significant pace.
Mobile app usage has been rising for several years, with no signs of slowing down. Below are some key facts and projections regarding trends in the mobile app industry:
Here are some insights on user trends and preferences that affect retention rates for mobile apps:
According to a report by Business of Apps,
The following table shows the retention rates for various types of mobile apps over a period of 30, 60, and 90 days:
Type of Mobile App | 30-Day Retention Rate | 60-Day Retention Rate | 90-Day Retention Rate |
Media & Entertainment | 37% | 27% | 22% |
E-commerce & Retail | 39% | 27% | 22% |
Travel & Lifestyle | 38% | 28% | 23% |
Business & Technology | 34% | 23% | 17% |
Social Networking | 30% | 20% | 16% |
In 2022, TikTok maintained its position as the most popularly downloaded app, while its video editing application CapCut was ranked in the top five. Interestingly, Facebook dominated with three apps in the full five downloaded applications list. Source: Apptopia
App | No. of Downloads in Million (Global) |
Spotify | 238 |
Stumble Guys | 254 |
Subway Surfers | 304 |
Telegram | 310 |
Snapchat | 330 |
CapCut | 357 |
424 | |
449 | |
548 | |
TikTok | 672 |
In the US, TikTok managed to maintain its status as the most downloaded app for two consecutive years, with an increase in its downloads. Furthermore, Cash App witnessed another rise in popularity in 2022, thereby solidifying its position as the top financial app in the US. Source: Apptopia
App | No. of Downloads in Million (US) |
45.5 | |
Messenger | 46.3 |
Amazon | 47 |
Roblox | 50.9 |
Subway Surfers | 51.4 |
Snapchat | 54 |
63 | |
Cash App | 64 |
72 | |
TikTok | 99 |
The mobile app industry is expanding at a fast pace, and the trend is expected to continue. As consumers increasingly use their smartphones for various activities, from shopping to entertainment, businesses can take advantage of this trend to reach their target market. In light of advancing technology, the mobile app industry will keep changing, creating new opportunities for companies to improve their business strategies and stay competitive. By adopting the right approach and being informed about industry insights, businesses can leverage the evolving mobile app industry to their advantage. This will enable them to remain ahead of their competitors while providing value to their customers.
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A. In 2022, the size of the worldwide mobile app market was worth USD 206.85 billion, and experts project it to grow at a compound annual growth rate (CAGR) of 13.8% between 2023 to 2030.
A. Several prominent companies in the mobile application market are Apple Inc., Google LLC, Microsoft Corporation, Amazon Inc., and Gameloft SE.
A. The mobile app industry pertains to a specific area of the software industry that specializes in creating and delivering mobile applications intended for use on mobile devices such as tablets and smartphones. It provides a range of applications spanning various categories, such as gaming, healthcare, fitness, music, entertainment, e-commerce, and retail, among others.
A. Regardless of the size and growth of the market, the mobile application industry is highly competitive and challenging. While it may be relatively easy to enter the market, sustaining a successful presentation is a major concern for entrepreneurs.
A. Here is the six types of mobile apps:
A. Here are some of the trends to look for in 2023 and beyond:
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Rebecca is a multi-disciplinary professional, proficient in the fields of engineering, literature, and art, through which she articulates her thoughts and ideas. Her intellectual curiosity is captivated by the realms of psychology, technology, and mythology, as she strives to unveil the boundless potential for knowledge acquisition. Her unwavering dedication lies in facilitating readers' access to her extensive repertoire of information, ensuring the utmost ease and simplicity in their quest for enlightenment.
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