The growing advent of smartphones, along with apps that run on them is perhaps the biggest technical phenomena in the recent times.Smartphones has now become the remote control for our lives, with things happening in just a single tap through a surplus of mobile apps to choose from i.e., playing games, tracking music, building connects, exploring outlets or food joints, booking cabs, or a seamless retail commerce experience through mobile
Global Impact– With revenue of USD 86 billion in 2014 and an annual growth rate of 27 per cent, global mobile apps economy is a fast growing technology adoption across the world. While,America is currently the largest market (with a share of nearly 55 per cent), Asian countries are expected to outpace the growth in terms of app downloads and usage.
The key drivers for the app economy–
Ubiquity of smartphones – Smartphone adoption is widening to smaller cities and towns, as prices continue to decline.
– More than 75 per cent of the world population is mobile-enabled. The experience of having fast internet access combined with highly intuitive and flexible user interfaces on today’s smartphones, has become even more of a reality.
Accessibility via app stores – Convenient access to the ubiquitous world of mobile apps via play stores. This greatly augments the usefulness of mobile devices
Proximity to the targeted user group – Apps offer personal user-experience which websites are unable to provide. Users spend greater than three hours on their smartphones with most of their time spent on apps
Mobile usage = App usage – An average smartphone user has approx.17-18 apps which would definitely lead to a rise in app usage.
How profitable is the mobile app market?
The mobile app economy was worth $53 billion in 2012, and the forecast for 2016 is that it will grow to $143 billion. The figures vary slightly from researcher to researcher but the fact is that mobile is really big. Revenue is generated through in-app purchases, in-app ads, and big data accumulation. The most promising sections are social networks, utility, advertising, and productivity. The fastest growing markets are APAC and Latin America.
The estimated number of mobile app developers is 2.3 million, which means that one developer out of eight is dealing with mobile apps. Apple, during its WorldWide Developer Conference, talked about 1.25 million apps in the App Store accounting for 50 billion downloads and $5 billion paid to developers last year.
It is expected that app downloads will grow to 200 billion while mobile app revenues in 2017 will be as huge as $63.5 billion. The transaction value for global mobile payments is projected to grow from $235 billion in 2013 to $721.3 billion in 2017. The main trigger behind rocketing mobile app usage is the steadfast sales of tablets, smartphones and other mobile devices.
The growth is evident in all app categories. It is clear to mobile researchers that mobile apps are turning into huge distribution channels themselves, rather than staying as independent instruments of marketing communication. The reach, the frequency, and the retention rate are fascinating for mobile apps. It is significant that mobile app usage dominates the overall time spent on daily media consumption at 82%.
The majority of available apps are B2C since B2B mobile apps are only now starting to enter the mobile app market. The potential for growth is huge. Although the forecasts and the statistics from each research company are slightly different, you can still conclude that the app market is really big.
In the US, 67% of people use smartphones to access the Internet every day, and the majority won’t leave home without their phone. As the PewResearch Internet Project indicates, about half of all cell phone users have mobile apps installed, and two-thirds are regular mobile app users. Most users of mobile apps are between 25 and 30 years old, are married, live in suburban areas, and have had at least four years of college education. Mobile app users are generally younger, more educated and have higher income than other cell phone holders. Businesses that integrate mobile into their strategy can engage an entirely new type of customer – an instantly connected one. Smartphone users generally prefer to multi-task and be on-the-go.
Users who you can reach through mobile apps are more engaged and ready to communicate with your business as long as the channel of communication is accessible and they can find all the product info needed. For this, you need to give your app process to be handled by a suitable mobile app development company .
Mobile apps work to increase customer loyalty (especially in retail). Loyal customers tend to download free branded mobile apps more often and spend twice as much time on them than on a mobile website.