Mobile Application Market Size, Share, & Trends Analysis Report By Store Type (Google Store, Apple Store, Others), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global mobile application market size was valued at USD 206.85 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. Applications for gaming, mobile health and fitness, music and entertainment, social networking, retail and e-commerce, and other purposes are all included in the study's scope. The ubiquity of smartphones, rising internet usage, and the use of technologies like artificial intelligence and machine learning in mobile applications all point to future growth in demand for mobile applications (apps). Additionally, the aforesaid applications are typically downloaded from application distribution websites like the Google Play Store and the App Store for iOS.

The primary driver of market growth is the remarkable increase in Internet usage, particularly in developing nations such as Brazil, China, and India. Over the past decade, the Internet has materialized as the prime mode of communication via several gadgets, including tablets, smartphones, and laptops, among others. The number of mobile app buyers has increased in recent years due to growth in the e-commerce industry, various discounts, and offers, and product assortment that is only available on e-platforms. The accessibility of low-cost data plans and packages from telecom operators, which decreases the price of the internet and entices more online users is another parameter accelerating mobile application downloads throughout all platforms. 

The increased internet penetration and gaming technology have continued to improve, resulting in more accessibility to mobile games. Games such as Pokémon Go use sensors such as motion sensors, gyroscopes, and accelerometers in tablets and smartphones to ensure the capability of Augmented Reality (AR) and Virtual Reality (VR) on the mobile phone through various apps. Moreover, primarily there are three revenue models, comprising in-game purchases, paid game applications, and in-app advertisements that games and application developers follow.

With the growing popularity of mobile gaming, a survey study highlights that around 5 to 10% of gamers are willing to pay for game applications, which is a double-digit increase from 2018. Furthermore, it is a proven fact that once users approve the value of an application and have an urge to unlock extended functionalities, they tend to perform more in-app purchases. Games like Pokémon GO, Candy Crush Saga, and Clash of Clans are some gaming applications that earn more through in-app purchases than any other revenue channel.

In the wake of the recent coronavirus (COVID-19) outbreak, the social media-, gaming-, and entertainment-based applications had the highest number of downloads compared to other applications. Furthermore, the demand for e-commerce, healthcare, and educational applications has also witnessed strong growth. In educational apps, the shift to remote learning has provided lucrative growth opportunities to several online portals and tech companies such as Google Classroom, Zoom, and Microsoft Teams.

Store Type Insights

The Apple store segment led the market and accounted for more than 62% of the global revenue share in 2022. The segment's high share is primarily due to iOS apps' relatively higher rate of monetization for revenue generated by in-app purchases and premium apps. Also, an increase in iPhone and iPad users worldwide is further contributing to the segment growth. Moreover, mobile game spending accounted for a huge revenue share in 2022.

Moreover, in terms of the number of downloads, the Google Play store segment accounted for the highest share in 2022 and is anticipated to continue its dominance over the forecast period. Also, there has been a massive growth in Android smartphone sales over the past few years, with many new competitors such as OnePlus and Xiaomi Corp. challenging the existing and leading players such as Samsung and iPhone. The emergence of new Android smartphone manufacturers has led to the introduction of a wide range of mobile applications on Google's Play Store.  The introduction of a wide range of mobile applications, coupled with a huge consumer base ensures a strong growth prospect for the Google Play store during the forecast period.

Application Insights

The gaming application segment of the mobile application market held the largest revenue share of more than 42% in 2022. Furthermore, the segment is anticipated to continue its dominance during the forecast period due to an unprecedented rise expected in the gaming population and resultantly the number of mobile gaming applications in economies such as China and India. Additionally, the three main Operating System (OS) platforms used to create mobile games are iOS, Android, and Windows. In 2021, Android OS accounted for a significant volume of game downloads, while iOS generated higher revenue due to the paid nature of games.

The music and entertainment application segment is projected to exhibit a significant CAGR of around 14.3% from 2023 to 2030. The segment includes music and entertainment applications such as Netflix, HBO NOW, Tinder, Spotify, YouTube, Amazon Prime, and Hulu among others. In the U.S., Netflix generated the highest revenue in the music and entertainment application segment, followed by YouTube in 2018. There has been a massive increase in the usage of music and entertainment apps on account of the growing popularity of streaming services. Live streaming apps such as Netflix, YouTube, and Instagram enable users to broadcast live videos to a broader audience as well as engage them on daily basis. 

Regional Insights

Asia Pacific dominated the market and accounted for over 32% of the revenue share in 2022. Mobile apps have seen widespread adoption across the Asia Pacific region. Factors such as increasing smartphone penetration and internet access, along with a growing middle class, have led to a surge in app usage in the region. In particular, countries like China, India, and Southeast Asian nations have seen significant growth in mobile app usage, with a focus on areas such as e-commerce, gaming, and social media. Additionally, the COVID-19 pandemic has further accelerated the adoption of mobile apps as people have turned to digital platforms for work, education, and entertainment.

North America has the presence of numerous players in the region, such as Apple Inc.; Google LLC; Hewlett Packard Enterprise; Netflix Inc.; and Microsoft Corporation. Strong in-app consumer spending, high smartphone penetration, and a relatively greater number of mobile application downloads have collectively ensured a high market share. The U.S. is expected to emerge as a lucrative market for mobile games application in terms of in-app payment, paid mobile games, and a rapidly increasing user base of mobile apps in the country.

Key Companies & Market Share Insights

The market is highly fragmented with the presence of many developers. Some market players are engaged in acquisitions and partnerships to expand their capabilities. For instance, in March 2022, Netflix Inc announced that the company has acquired Next Games, a Finland based developer company. With this acquisition, Netflix is building mobile gaming services into their subscription services. Some prominent players in the mobile application market include:

• Apple Inc.,

• Google LLC

• Microsoft Corporation

• Amazon Inc.

• Gameloft SE

• Netflix Inc.

• Practo

• Cure.fit

• Ubisoft Entertainment

• Xiaomi Corp.

Mobile Application Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the mobile application market report based on the store type, application, and region:

• Store Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Google Store

  • Apple Store

  • Others

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Gaming

  • Music & Entertainment

  • Health & Fitness

  • Social Networking

  • Retail & E-commerce

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa