MOBILE APPLICATION MARKET ANALYSIS

The global mobile application market accounted for US$ 183.98 Bn in terms of value in 2023 and is expected grow at a CAGR of 12.7% during the forecast period (2023-2030). A mobile application or an app is a type of application software that is designed to run on a mobile device such as a smartphone or tablet. Initially, the apps are intended for productivity assistance such as calendar, email, and contract databases. However, growing demand has led to the expansion of various other uses such as games,global positioning system,order-tracking, ticket purchasing, location-based services, and more. Mobile applications are downloaded from an application distribution platform, which is operated by mobile operating system owners such as Google Play Store (Android) or App Store (iOS).

Global Mobile Application Market: Regional Insights

Asia Pacific dominated the global mobile application market in 2022, accounting for 31.7% shares in terms of value, followed by Europe and North America respectively.  Internet access rates in the Asia Pacific region vary widely. China, India, and Indonesia are seeing a digital divide between urban populations with high internet access levels and rural areas that lack the infrastructure to support it. Digital technology strengthened public health measures during the COVID-19 pandemic, including to rapidly link citizens to food and mental health support. Numerous players in North America are present in the region, including Apple Inc.; Google LLC; Hewlett Packard Endeavor; Netflix, LLC; and Microsoft Enterprise. Solid in-application customer spending, high cell phone entrance, and a somewhat more noteworthy number of portable application downloads have on the whole guaranteed a high portion. The U.S. is arise as a worthwhile market for versatile games application as far as in-application installment, paid portable games, and a quickly expanding client base of versatile applications in the country.

Figure 1: Global Mobile Application Market Share (%), By Region, 2022

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Global Mobile Application Market Drivers:

Rapid growth of mobile ad industry

The mobile ad industry has witnessed significant growth in the recent past owing to the high adoption of mobile devices such as smartphones, tablets, and more. ,advancements in mobile technology have contributed to the proliferation of rich media formats, such as interactive ads, video ads, and augmented reality experiences. These captivating ad formats have allowed brands to create more engaging and memorable experiences for their audiences, leading to higher conversion rates and brand recall. The mobile ad industry has also benefited from the growing popularity of mobile e-commerce. As consumers increasingly make purchases through their smartphones, advertisers have recognized the potential to convert mobile traffic into actual sales. Mobile ads have seamlessly integrated into shopping apps and websites, offering users a convenient way to discover and purchase products, driving revenue growth for both advertisers and publishers. the rapid growth of the mobile ad industry can be attributed to the widespread use of smartphones, the surge of social media and mobile apps, advancements in mobile technology, the rise of mobile e-commerce, and data-driven advertising strategies.

Rampantly expanding e-commerce industry

Many retailers are focused on finding opportunities for market development without a physical footprint. Consumers prefer buying products through online platforms instead of local retail stores especially smartphones. This indicates that there is an opportunity for e-commerce as well as for mobile application companies across the globe. Moreover, many investors have shown interest in e-commerce platforms in the recent past. For instance, in June 2023, Nykaa is an Indian e-commerce company, It sells beauty, wellness and fashion products, FSN E-Commerce Ventures Limited is a consumer technology platform company. Nykaa parent FSN E-Commerce Ventures to invest in Indian and overseas subsidiaries.

Global Mobile Application Market Opportunities:

Growing investment in digitization

The developing interests in digitization in portable applications mirrors the acknowledgment of the significance of versatile innovation in coming to and drawing in clients, driving business development, and remaining cutthroat in the advanced scene. There has been a significant increase in investments in digitization, particularly in mobile applications. Companies across various industries recognize the immense potential and opportunities that mobile applications offer. For instance, in December 2022, US-based Celesta Capital keen to invest in Indian semiconductor startups Such investments are expected to offer lucrative business opportunity for market players to expand their product portfolio, enhance their market presence, and gain competitive edge in the market.

Mobile E-Commerce Application Development

Mobile apps enable convenient and secure online transactions, making it easier for consumers to shop, pay bills, and conduct financial activities. M-commerce apps enable businesses to leverage location-based services to provide location-specific offers and discounts. By utilizing geolocation data, apps can present users with relevant promotions and incentives based on their current location, encouraging them to make impulsive purchases and visit nearby stores. M-commerce apps provide a seamless and user-friendly experience to customers, allowing them to browse products, make purchases, and conduct secure transactions directly from their mobile devices. This convenience has led to a surge in m-commerce activities, making it a lucrative opportunity for businesses. For instance, in 2020, mobile commerce, also known as m-commerce, was already a growing trend in the retail industry. With the increasing popularity and widespread use of smartphones, more and more people were turning to their mobile devices to make purchases.

Global Mobile Application Market- Impact of Coronavirus (Covid-19) Pandemic

During the pandemic, certain portable applications made our lives a lot simpler detained. The demand for on-request applications, basic food item applications, diversion applications, and advanced installment applications increased during the emergencies as individuals were not permitted to go out. One of the few companies to start offering a demand-based pricing model was Uber which is provide transportation services. This helped many other popular apps improve their user interfaces. Beginning from ride-sharing to food, medical care, magnificence, and travel there is consistently a requirement for on-request applications. During quarantine, messaging, video calls, games, and video streaming increased, thus propelling the market growth. The COVID-19 influence on the mobile app development industry has brought to the forefront lots of concerns regarding data security. Especially, as the majority of such apps like contact tracing, healthcare products, etc.collect and process large-scale data which has become the subject to potential attacks and data breaches.On-demand apps are more in demand. The restriction from the secondary use of data, transparency of information flows, decentralized storage for app's data, automatic deletion of information once the purpose has been fulfilled, and collaboration with supervisory authorities are just a few security practices that have been implemented in the public health.

Restraints:

Growing concerns about user privacy and security is expected to restrain growth of the global mobile application market during the forecast period

With the increasing use of mobile applications and the collection of user data, there are growing concerns about user privacy and data security. Cases of data breaches and misuse of personal information have raised alarms among users, leading to increased scrutiny and regulations. Data breaches and instances of personal information misuse have sent shockwaves through the digital landscape, eroding user trust and prompting apprehension among consumers. High-profile cases involving unauthorized access to sensitive data and the sale of personal information have exposed vulnerabilities in mobile app security, leaving users worried about the potential consequences of their personal information falling into the wrong hands. As a result, both users and regulatory authorities have raised alarms, demanding more rigorous scrutiny and regulations to safeguard user privacy. App developers and companies in the mobile application market have also become more conscious of the importance of privacy and security measures. Transparency regarding data collection practices and the purpose of data usage has become a focal point for building and maintaining user trust.

Furthermore, industry organizations and technology communities are collaborating to establish best practices and guidelines for app developers to follow, emphasizing the significance of privacy by design. By integrating privacy and security considerations from the inception of app development, companies can reduce the likelihood of data breaches and ensure a more secure mobile app environment for users.

Rapid expansion of Mobile Application Market has led to Increased Saturation

The global mobile application market has experienced exponential growth in recent years, with a vast array of apps catering to various needs and interests. However, this rapid expansion has led to increased saturation, making it increasingly challenging for new apps to distinguish themselves and gain significant user traction.As the number of mobile applications continues to soar, the market has become extremely crowded, resulting in fierce competition among app developers and companies. With countless apps vying for attention, it has become difficult for newcomers to break through and attract a substantial user base.For new app developers, the struggle lies not only in creating a unique and innovative product but also in effectively marketing and promoting it to reach potential users.

The mobile app market's saturation has intensified competition, making it difficult for new apps to stand out and gain significant user traction. Nonetheless, with strategic planning, a focus on innovation, and persistent marketing efforts, there is still potential for new entrants to carve a space for themselves and thrive in this highly competitive landscape.

Global Mobile Application Market Trends:

On Demand Service Application

On-demand service apps, such as food delivery, ride-hailing, and grocery delivery, have been popular in recent years. This trend is likely to continue as consumers increasingly value convenience and quick access to services. the main reasons for the continued success of on-demand service apps is the increasing demand for convenience. In today's fast-paced world, consumers value their time and seek solutions that can simplify their daily tasks. On-demand apps cater to this need by offering services like food delivery, ride-hailing, and grocery delivery, allowing users to access these services with just a few taps on their smartphones. Businesses have also recognized the potential of on-demand apps as a lucrative market. Startups and established companies alike are investing heavily in app development and marketing to capitalize on this growing trend. As a result, the competition in the mobile application market is intense, leading to constant innovation and improved user experiences. on-demand service apps have transformed the global mobile application market, and their popularity is poised to continue its upward trajectory.

Increasing Adoption of Smart Phones and Mobile devices globally

The global mobile application market is undoubtedly on an upward trajectory and is expected to continue its growth in the coming years. One of the primary factors contributing to this growth is the increasing adoption of smartphones and mobile devices worldwide. As technology becomes more accessible and affordable, a larger portion of the global population is gaining access to smartphones, leading to a substantial expansion of potential users for mobile applications.With smartphones becoming an integral part of everyday life, users are relying more heavily on mobile applications to fulfill their diverse needs. From communication and social networking to productivity, entertainment, shopping, and even healthcare, there seems to be a mobile application for almost every aspect of life. Another crucial factor driving the growth of the mobile application market is the increasing internet penetration across the globe. For instance, in November 2022, Samsung Sees Significant Adoption of Foldable Smartphones as Enterprise Demand Doubles

The increasing adoption of smartphones and mobile devices, coupled with growing internet penetration, drives the rising demand for mobile applications across various industries. As businesses leverage technology advancements and user preferences continue to shift toward mobile-centric experiences, the mobile application market is likely to remain on its upward growth trajectory in the foreseeable future.

Figure 2: Global Mobile Application Market Share (%), By Type, 2022

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Global Mobile Application Market Segmentation:

On the basis of store type, the market is segmented into apple app store, google play and others. Google play segment held in dominant position in mobile application market in 2022, accounting for 48.6% share in termfor value. On the basis of end use, the market is segmented into games, social networking, healthcare, books, music, productivity, education, entertainment, news, photos and videos, navigation, travel, business, and others.On the basis of Region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East and Africa.

Global Mobile Application Market: Key Developments

In March 2023, Google is an American multinational technology company focusing on artificial intelligence, online advertising, search engine technology etc released an updated version of Apigee X. The Advanced API Security Abuse detection Incident details page now displays unique IP addresses, even if more than one incident corresponds to the same IP address. Previously, the Incident details page could display the same IP address more than once for different incidents

In Dec 2022, Apple is a computer and electronic manufacturing company has announced the biggest upgrade to App Store pricing, adding 700 new price points. Apple announced the most comprehensive upgrade to pricing capabilities since the App Store first launched, providing developers with 700 additional price points and new pricing tools that will make it easier to set prices per App Store country or region, manage foreign exchange rate changes, and more.

In June 2023, Cognizant and ServiceNow announced a strategic partnership to accelerate the adoption of (Artificial Intelligence) AI-driven automation. The expanded alliance is expected to help accelerate the path toward building a $1 billion combined business for Cognizant and ServiceNow.

Global Mobile Application Market: Key Companies Insights

The key players operating in the global mobile application market are SAP SE, Google Inc., Opera Software, Microsoft Corporation, Apple Inc., CA Technologies, Samsung Electronics Co., Ltd., Cognizant, China Mobile Limited, and Hewlett Packard Enterprise Development LP.

*Definition: A mobile app or mobile application is a software application developed specifically to run on small and wireless devices such as smartphones, tablets, and smart watches, rather than on desktops or laptops.