In today’s world, smartphones have become an essential tool for managing work and personal life, regardless of location. As a result, most people take advantage of this convenience. In line with this, most businesses are starting to look for an App Developer in Orange County to have their mobile app projects created. Developing mobile-first software has become crucial for businesses’ bottom line, as we are already living in an age of mobile-first.
According to various statistics, mobile apps are taking over, with people spending more than 90% of their mobile time using applications. The continuous growth of app revenue statistics supports this fact. Meanwhile, responsive design is becoming outdated, as it offers a poor user experience and often results in pages being crammed with too much information for a mobile screen.
The mobile application market is growing at an unprecedented rate, with the number of app downloads reaching a staggering 194 billion, a 10% increase from the previous year. These numbers are expected to continue growing, allowing app publishers to reach record-breaking revenue.
In this article, we will explore the shifts in-app revenue trends over time and the various app revenue sources available. We will take a closer look at the most exciting app revenue trends and find out how apps are changing the way people use smartphones.
Impressive App Revenue Statistics:
In 2022, there are over five million apps available on various app stores, with 96.4% of them free on the Google Play store. While the majority of apps are free, advertising and in-app purchases play a significant role in generating revenue for developers.
Users worldwide are spending $380 billion on in-app purchases. (Source: ZDNET)
In-app purchase statistics for 2021 reveal that customers worldwide are spending $380 billion on in-app purchases, indicating a thriving mobile app economy.
The fitness app that generated the most revenue in 2020 is Calorie Counter – MyFitnessPal, generating $1,241,651. (Source: Statista)
Calorie Counter – MyFitnessPal is the winner of the highest fitness app revenue, generating an impressive $1,241,651. This information was provided by J. Clement, a research expert covering e-commerce and the internet, published on Statista.
Another Interesting fact: MyFitnessPal fell victim to one of the biggest data breaches in history in 2018.
On the Play Store, nearly 97% of apps were available for free, as reported by 42 Matters. This is a significant statistic because it shows that despite the majority of apps being free, the Google Play store still managed to generate a considerable revenue of $8.3 billion, which amounts to just 3.6% of the total number of apps available.
This is significant because, despite the majority of apps being free, the Google Play store still generates a considerable revenue of $8.3 billion, accounting for only 3.6% of the total number of apps available.
It’s not surprising that most of the top-grossing apps are gaming apps, given that smartphone manufacturers are releasing phones designed specifically for gaming. The mobile app market is a major focus for software developers, and it’s easy to see why. Mobile apps are faster and easier to use than regular websites on mobile devices, which has helped the market continue to grow.
The app market is growing, and mobile app revenue is projected to reach $935 billion by 2023, according to Statista.
As of 2021, there are about 2.9 million apps for Android users on the Google Play Store, while the Apple App Store has about 2.09 million apps. The growing demand for mobile apps has led to a 31% year-on-year increase in global revenue in 2021. As of Q1 2021, Google Play and App Store have made $36.7 billion and $31.8 billion, respectively. However, Google Play is expanding faster with 24% growth in Q3 2019 in the year-to-year reports. For comparison, Apple App Store revenue is 22.3% higher than the previous year. The two largest mobile application distribution platforms deliver quite different results in terms of revenue and downloads.
The total number of app downloads from the iOS App Store is 8 billion, which is relatively small compared to the impressive 21.6 billion downloads from the largest Android app store.
Consumer spending on the App Store has grown by 38% since 2019. Statista estimates that this figure will reach $185 billion by 2025, compared to $85 billion for the Google Play Store. An estimated 5% of all users currently spend money on in-app purchases, with most of them located in Asia, North America, and Europe. In-app purchases account for 48.2% of all mobile app earnings, while paid app revenue comes second, at 37.8% of the total. The global monthly in-app spend per user, per app, is $0.50. The average in-app purchase per user is quite different for Android and iOS users, with an average price of $0.47 cents for Android and $1 for iPhone owners.
Interestingly, Google Play offers 37% more apps to its users than Apple’s App Store, yet the App Store’s income is greater, according to app revenue statistics.
Global app revenue is expected to reach around $935 billion by 2023, according to Statista.
This revenue will come from in-app advertising and paid downloads, with the sector experiencing over 50% growth compared to 2018. As of 2021, approximately 93% of the apps on the App Store were free, while about 96.7% were free on the Play Store.
Even though in-app advertising is one of the most disliked monetization models by app users, it remains one of the most widely used revenue streams and generates a significant portion of the creator’s income.
98% of Google Play revenue comes from “freemium” apps, as reported by The Verge.
Paid apps are expected to decrease even further in the next few years.
Download numbers don’t always imply retention. In 2019, a quarter of all downloaded apps were used only once in the first six months of ownership, which is suboptimal in terms of app ad revenue.
There are around 400,000 low-quality apps in the market, according to App Brain.
The number of low-quality apps has slightly decreased from May 2020 to May 2021. These are applications that provide little to no
App Store app downloads grew by 2.5%, while Google’s increased by a whopping 30% in 2020. (Source: TechCrunch)
Mobile apps have become the go-to for users, dominating over their web-based counterparts in terms of usage. Users spend nearly 90% of their online time in apps. The majority of growing apps are gaming apps, with a few exceptions like Tinder for dating and Bigo Live, which is a social app. Statistics anticipate that app revenue trends for 2023 won’t be any different.
Coinbase was the app that brought in the most revenue in April 2021, after making around $61 million. Following was Garena Free Fire – World Series with about $38.6 million, and then PUBG Mobile – Karakin with $37.76 million.
Regarding the highest-grossing gaming apps in Q1 of 2021, Honour of Kings was leading, followed by PUBG Mobile, then Uma Musume Pretty Derby. Despite the fact that gaming apps are the most commonly created and are in the top spots in terms of revenue, only 65% of users say they have any games on their mobile devices. Preceding game apps, in terms of market reach, are communication and social, productivity, and task management tools, as well as shopping and travel, among others.
This data clearly shows that the supply of mobile game apps is not exactly in line with the demand.
The top app category, by consumer spending, worldwide is Games. Entertainment and Social networking follow. (Source: Business of Apps)
The most downloaded non-game publishers in the first month of 2021 were Google LLC (127 million), BabyBus (57 million), and Microsoft Corporation (44 million). In the same period, mobile gaming app publishers with higher revenue worldwide are King, Supercell, and Bandai Namco. Each of them has gone over $40 million in revenue. Netflix fell to second place last year. Another who lost its place in the year’s race is HBO Now, which enjoyed a high ranking in 2018 thanks to “Game of Thrones.” Still, those are only two of the best streaming services on the market, but many more are “fighting” to become #1.
Paid apps are expected to decline in the next few years, giving way to the in-app advertising revenue model. Another app revenue trend for the future is the subscription model for non-game apps and in-app purchases for game apps
Mobile apps have become a major focus for software developers as they offer fast and easy access to users compared to regular websites. Gaming apps are currently dominating the mobile app market, but non-gaming apps are expected to generate more revenue through paid subscriptions by 2022.
TikTok is leading the race in revenue generation for non-gaming apps with $128 million in user spending in January 2021. The Photo & Video category is currently the top revenue-driving non-game app category, followed by Entertainment. The data also shows that while the gaming app category is the largest on Apple’s App Store, only 65% of mobile users in the US have games on their smartphones. The top revenue-driving mobile games are generating millions of dollars, with Candy Crush alone generating almost $1.2 billion in 2020.
In terms of app monetization options, in-app purchases are the most preferred revenue model used by developers. While in-app advertising is the preferred monetization model, it only accounts for 14% of mobile app revenue. In-app purchases generate 48.2% of all revenue, while paid downloads generate 37.8% of the gross income.
Despite the fact that only 0.01% of all apps ever created become successful, the mobile app market is expected to continue growing, with an estimation of $935 billion in revenue by 2023. With so much potential for growth, this is an excellent time for app developers to seize the opportunity and create apps that can become successful and generate high revenue.
User retention is crucial for app success. (Source: Localytics)
Studies show that app users tend to stop using apps relatively quickly after downloading them. In fact, over 20% of users abandon an app after using it just once. Moreover, after three months, only about 10% of users remain active on an app.
This is why user retention is so important. In order to achieve long-term success, app developers must focus on creating an engaging user experience and finding ways to keep users coming back to their app.
In 2020, global app usage increased significantly. (Source: App Annie)
With more people spending time at home due to the pandemic, mobile app usage saw a major increase in 2020. App Annie reported that the average user spent around four hours per day on their mobile device, with 90% of that time spent on apps.
Unsurprisingly, entertainment and social media apps saw the most significant increase in usage, with categories such as video streaming, gaming, and social networking experiencing major growth.
App store optimization (ASO) is crucial for app success. (Source: Business of Apps)
In order to achieve success in the competitive world of mobile apps, it is important for developers to focus on app store optimization (ASO). This involves optimizing various aspects of an app’s store listing, including the app title, description, keywords, and graphics, to improve its visibility and ranking in app stores.
ASO is important because the majority of app downloads come from users discovering new apps in app stores. By optimizing an app’s store listing, developers can improve their app’s visibility and attract more potential users, ultimately leading to increased downloads and revenue.
Overall, these app revenue statistics demonstrate the massive growth and potential of the mobile app industry. As more and more people turn to mobile devices for entertainment, work, and communication, the demand for new and innovative apps will continue to grow. By staying up to date on app revenue trends and best practices, app developers can position themselves for success in this dynamic and rapidly-evolving industry.
App localization is essential to reach a broader audience and increase revenue. (Source: Business of Apps)
App localization is the process of adapting an app to the language and culture of a particular region. It enables app creators to expand their market and reach a broader audience. According to research, the most common languages used in mobile apps are English, Chinese, and Japanese. However, as the app market grows, the demand for localization has increased. The app revenue statistics show that localization can increase revenue by up to 30%.
The global mobile app market is expected to reach $407.31 billion by 2026. (Source: Grand View Research)
The growth of mobile app development has been phenomenal in recent years. The increasing demand for smartphones and tablets has fueled the growth of the mobile app market. With the introduction of 5G technology, the app market is expected to grow even further. The gaming category has been the most profitable, with a market share of around 40%. The rising demand for online shopping and e-commerce has also contributed to the growth of the app market.
The app market is highly competitive, and app creators need to be strategic to succeed. (Source: Forbes)
With millions of apps in the market, it can be challenging for app creators to stand out. To succeed, app creators need to have a clear value proposition, provide an exceptional user experience, and use effective marketing strategies. The app market is continuously evolving, and it is essential for app creators to keep up with the latest trends and technology.
In conclusion, the mobile app market is growing at a rapid pace, and app revenue statistics show that there is a significant opportunity for app creators to generate revenue. The gaming category has been the most profitable, but there is also substantial revenue potential in non-game apps. App creators need to be strategic and use effective marketing strategies to stand out in the highly competitive app market. With the continued growth of smartphones and tablets and the introduction of 5G technology, the app market is expected to grow even further in the coming years.
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