App Store Markets Grow Increasingly Global as Mature Markets Fuel In-App Revenue Growth, Downloads Soar in Emerging Markets
SAN FRANCISCO, CA--(Marketwired - Mar 29, 2017) - App Annie, the most trusted mobile app data and insights company, today announced its second annual App Store Forecast Report, which projects global app store growth for the next five years. App Annie forecasts consumer spend on apps to reach $139 billion in revenue* in 2021 as maturing markets see strong growth in gross app store spend per device and increases in in-app subscriptions. The five largest mature markets, which include the U.S., China, Japan, South Korea, and the United Kingdom, are expected to account for 85% of global consumer spend in 2021. Meanwhile, emerging markets, particularly India, Mexico, Brazil and Indonesia, are projected to fuel downloads in mobile app stores. Global downloads across all mobile app stores are forecasted to increase 20 percent annually, reaching 352 billion in 2021.
"Apps are transforming the way consumers interact with products, services, content and brands, across verticals globally," said Danielle Levitas, SVP of Research, App Annie. "Apps are creating an intimate, highly-personalized environment for brands to engage with users. Consumers are already spending twice as much time in apps than they did two years ago, which means it is increasingly critical for companies to build a successful business on apps if they haven't already."
Report Highlights Include:
Apps a global phenomenon; APAC leads in downloads and revenue, China dominates
The app economy is increasingly global. App adoption of each region depends on three factors: varying consumer behaviors, cultural sensitivities and preferences, and most importantly, where the respective market sits within the App Annie App Market Maturity Model, which is used to assess where a market is along its path toward maturation. Emerging markets are expected to see a boom in downloads as nearly 3 billion more consumers are introduced to apps over the next 5 years. For mature markets, users are increasingly engaging with, and spending on, apps.
The APAC region is projected to remain a global leader in the app space, leading by both downloads and revenue. Of the APAC markets, China is predicted to lead in both app store downloads and consumer spend, which are growing at an annualized rate of 19% and 24% from 2016 to 2021, respectively. India is expected to emerge as a strong driver for downloads through 2021.
All Android stores combined lead in revenue by year end 2017; iOS to remain the single-most lucrative store through 2021
For 2017, consumer spend in Android stores is forecasted to surpass the App Store. This is driven by increasing global app installs in Google Play and third-party Android stores. However, over the next five years, Apple's comparatively affluent customer base is expected to continue to spend more revenue per device. App Annie projects the iOS App Store to generate more than $60 billion in gross consumer spend in 2021, maintaining its top position in app store revenue.
Emerging, Non-Games Categories to reach $33.8B while Games remain revenue leader through 2021
In-app subscription revenue from non-game apps, particularly within the media streaming, news and dating categories, is rapidly increasing. App Annie forecasts revenue for non-game apps to grow at an annualized rate of 25% -- reaching $33.8 billion in 2021.
In 2016 alone, games represented 11% of time spent and 39% of all downloads, yet generated an impressive 81% of consumer spend via stores. Given gaming's ongoing shift to mobile and consumers' ease with spending on games, we expect this category to continue to generate the majority of revenue in 2021.
For App Annie's full Forecast Report, please visit: https://www.appannie.com/en/insights/
*Revenue reported in the Forecast Report is inclusive of consumer spend (versus net revenue paid to publishers) on mobile apps via all app stores globally. It does not include non-app store revenue (i.e. advertising).
The App Annie Forecast makes use of a proprietary algorithm to forecast the app marketplace. App Annie has accumulated over 30,000 separate sources comprising of economic, demographic, behavioral, and technology sector-specific data. This includes a wide range of public sources, such as the U.S. Census Bureau and financial institutions like the European Central Bank, and insights provided by App Annie Intelligence. In concert with our internal cross-validation of market sizing, we use a testing methodology for forecast projections similar to those used by major investment banks.
About App Annie
App Annie delivers the most trusted app data and insights for your business to succeed in the global app economy. Over 800,000 registered members rely on App Annie to better understand the app market, their businesses and the opportunities around them. The company is headquartered in San Francisco with 450 employees across 15 global offices. App Annie has received $157 million in financing, including from investors such as Sequoia Capital, Institutional Venture Partners, IDG Capital Partners, e.ventures, Greenspring Associates, and Greycroft Partners.