The global market for mobile applications was estimated to be worth $106.27 billion in 2018 and could rise to $407.31 billion by 2026, with a CAGR of 18.4%. The many software programs created specifically for smartphones and tablets are known as mobile apps. Similar services to those accessed on PCs are routinely made available to consumers through mobile apps. Mobile applications’ primary objective is to link people to internet services by enabling them to access the Internet on their portable devices.
The two main trends in the mobile application market propelling the market’s expansion are the rise in the use of mobile devices and the number of consumers shopping online. The continued growth of corporate apps is also fueling the market, with more attention on apps mainly utilized for in-app purchases for gaming, health & fitness. The ability to shift from scratching paper tickets, to having real money scratch-off apps is an appealing prospect that should play a key role in the growth of the mobile app market size.
However, the expansion of the mobile application market could be hampered by the absence of high-speed connectivity in developing and underdeveloped areas and the unwillingness of companies to create their own applications. Furthermore, throughout the projection period, there is likely to be significant potential for the market to develop due to the rise in digitization investments, increased usage of Internet of Things (IoT) technology, and mobile-linked smart objects.
Furthermore, due to the rapid popularity of various entertainment apps, the entertainment and music category is expected to expand at a substantial CAGR throughout the projection period.
Top contributing factors
Increased internet penetration and usage
One of the factors boosting the industry in developing nations is the rise in data use and internet penetration. Additionally, during the past ten years, the Internet has become the central communication medium via various gadgets, including computers, smartphones, and tablets. The Internet offers a quicker means of communication and allows users to access many apps for less expense and effort. The number of online shoppers has also greatly expanded due to the e-commerce sector’s expansion, a wider range of products, alluring promotions, and numerous discounts exclusively offered on e-platforms.
Additionally, the proliferation of low-cost data plan offers from multiple network providers lowers the price of internet access and makes it easier for developing countries to embrace these services.
Enterprises are hesitant to create their own applications
Due to the rising unpredictability of the existing apps and the rising expense of various applications, some firms are investing significant sums of money in building their own apps. Additionally, in order to guarantee flawless app operations and transactions, a number of apps need to be updated on a regular basis. As a result, the time and money required for these updates has increased, hence impeding market expansion. Moreover,companies are spending money on alliances or partnerships to provide users with a shared platform, which lowers their development and maintenance expenses.
Increase in the use of Machine Learning and Artificial Intelligence in mobile apps
The development of smartphones and artificial intelligence go hand in hand. Machine learning and artificial intelligence technologies are used by smartphone makers to produce new smartphone models, creating lucrative potential for the market’s expansion. Further, a survey found that 200 mobile application developers want to integrate AI and machine learning into smartphones to enhance functions like cameras and security software. Companies are also integrating artificial intelligence into smartphones and tablets to strengthen mobile applications and improve the performance of various mobile devices. AI enables mobile apps to get insights from diverse data created by all users and aids in enhancing user decision-making abilities, providing the mobile application industry with attractive potential.