Mobile Application Development Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Mobile Application Development Category Overview

The global mobile application development category is anticipated to grow at a CAGR of 24.8% from 2024 to 2030. Key factors driving the growth of the category include enormous penetration of smartphones across the globe, rising number of cell phone users utilizing internet, supplemented by uninterrupted and fast internet connectivity, and rising prevalence of advanced technologies in application development, such as artificial intelligence (AI) and machine learning (ML). The likelihood of using mobile devices, the internet, and various social media platforms is higher in sophisticated economies nowadays. Internet connectivity is more common among younger individuals, those with higher incomes and educational levels, and in both developed and developing nations. These elements will further propel the category. However, mobile application development requires significant investment and costs may vary based on different variables. This may hinder the growth of global category over the projected timeframe.

Key technologies supporting the growth of the category include beacon, artificial intelligence (AI), internet of things (IoT), augmented reality (AR), blockchain, and predictive analytics. The beacon technology is an emerging trend in the industry. It transmits and connects to mobile devices within a range of hundred feet via low-energy bluetooth signals. Apps that make use of this technology will be able to recommend to users the finest services that are close by, utilizing the device's location. In addition, technology such as AI can streamline the entire process of application development. It is capable of developing an app without instructions if it is provided with information about a prior app development process. Integration of AI can assist in resolving an issue with the app in real-time, if it faces any kind of technological malfunction.

The mobile application development category is fragmented in nature, exhibiting intense competition with the presence of large number of global and regional market players. Key players in the industry are leveraging latest technologies to enhance their product and service offerings, with an objective to increase their share in the category. In addition, the players are engaging in strategic initiatives such as partnerships, increased investments, mergers & acquisitions, and contractual agreements with an objective to stay competitive in the industry. For instance, in 2023, BuildFire Inc. announced the acquisition of Bizness Apps Inc., which supported the company in its ongoing innovation and expansion in the sector. Suppliers in the category possess low negotiating capability as there is a large pool of service providers who are competing with each other on the basis of product & service differentiation, and pricing. This enables the buyers to select the best suited option.

Infrastructure (hardware / software / network), labor, rent & utilities, training & certifications, and maintenance & upgradation are the key cost components of this category. Key factors that influence the cost of developing a mobile app include design complexity, platforms supported, features, security, location, and size of the development team. Development expenses are influenced by the complexity of the design, which includes custom visuals, animations, and transitions. In addition, the number of platforms that an application must support is another major pricing factor. Developing an app for both iOS and Android is nearly twice as expensive as creating one for just one platform. The cost of developing an android-based mobile app may take 3 to 10 months of time and can cost between USD 14,900 to USD 119,900, whereas, the cost of developing an iOS-based mobile app may take 3 to 8 months of time and can cost between USD 9,900 to USD 99,900.

North America region dominates the global mobile application development category, holding substantial share of revenue. Growth of the region is attributed to the proliferation of smartphones, rising in-app purchases, and a proportionally greater volume of downloaded applications. The United States is predicted to become a very lucrative market for mobile gaming applications when it comes to in-app purchases, premium mobile games, and a rapidly growing user base of mobile apps. Selecting a service provider that offers the highest level of security and least vulnerability in its tech stack, reviewing the work portfolio of the service provider’s previous projects to check if their expertise matches the requirement, and comparing the development cost of multiple service providers to ensure selecting the most efficient and best optionare some of the best sourcing practices considered in this category.

Mobile Application Development Procurement Intelligence Report Scope