June 27, 2016
When it comes to tech, trends are constantly changing. And with the uncertainty of the industry, it's possible that many brace for the worst to happen – just in case.
For the app industry, there is some concern that the sway of popularity could be weaning. Usage numbers have been decreasing, and developers and app publishers fear that it could signal the end of the their industry. But research suggests that the opposite is true. It's predicted that about $100 billion in revenue could be generated by 2020 from apps alone.
The Growth of the App Industry
According to research conducted by AppAnnie, the app industry is predicted to continue growing. As trends generate from download and revenue patterns, this information all adds up to help developers and companies better understand the consumer market and what users respond the strongest to.
As written in the report:
“Today, app publishers come from every industry — not just game studios and media and entertainment companies, but also banks, retailers, airlines, ride-sharing services, government agencies and so on. As publishers continue to invest in their app strategy, they have critical questions about the future: How quickly will the app economy grow and where? Which factors are driving the growth and in which categories? And how much revenue will the app market yield? Where is the app economy going next?”
The report writes that “In 2016, the global mobile app market is projected to expand 24 percent to reach $51 billion in gross revenue across all app stores. By 2020, gross revenue across all app stores will exceed $101 billion globally.” That also includes a 20 percent compound annual growth rate over the next five years.
So what exactly will lead to this exponential growth? The streamlined growth of interchanging markets and rapid growth of emerging markets will move the app industry forward. In short, it's important that emphasis is placed on building related markets and developing apps to work in concert with similar emerging industries.
App publishers and developers have a long way to go when it comes to better understanding consumer download patterns and related industry trends, but if they can master that, then the future of the app industry looks strong.
Image via Pexels
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