There is much money to be made in apps. App Annie, an analyst firm, predicted that the application economy will be worth $6.3 trillion (US) by 2021. That would mean a 380% increase from the $1.3 trillion app market of 2016.
Tuesday last week, App Annie published a report in which it predicted an astounding increase in the global app market, this is due to more people in the world owning smartphones and increasingly using mobile apps. App Annie’s research showed people are spending more time using applications, with $3,5 trillion expected to be logged in 2021. In the year 2016, 1.6 trillion hours were spent using apps, said the report.
The firm noted that mobile commerce, which consists of services such as purchasing of goods via smartphone apps, stands for the “single largest driver of the growth of mobile and app economy.” App Annie predicts more people will be using their smartphones for shopping, following the lead of China and Asia-pacific region, which currently leads when it comes to mobile commerce.
“Compared to US consumers, Chinese consumers are nearly three times as likely to buy food and groceries via their devices, thrice as likely to transfer money using apps, and four times likely to spend a majority of disposable income on mobile,” said the report.
And just to note, while Apple’s iOS App Store is the biggest online software marketplace and will grow over $60 billion in 2021, Google Play and other third-party Android stores combined will overtake iOS’s haul by the end of 2021.
App Annie predicted Apple’s App Store reaching $40 billion in 2017, while third-party Android stores and Google Play will reach $21 billion in sales, respectively.