Mobile App Development Market

Market Overview

The global mobile app development market size was valued at USD 197.2 billion in 2021. It is expected to reach around, USD 583.03 billion growing at a CAGR of 12.8% during the forecast period (2022–2030).

Mobile application development platform refers to a system that facilitates the process of designing, developing, and maintaining software applications that are compatible with mobile devices. These applications are delivered to application stores or pre-installed on mobile phones before they are shipped out to customers.

Programmers of mobile applications typically outsource the backend infrastructure to cloud service providers in today's world. This allows developers to focus on creating innovative features and functionality rather than worrying about scalability, security, or reliability. The increasing dependence on smartphones for banking services is one factor driving up demand for mobile application development platforms in the banking, financial services, and insurance sectors.

Furthermore, it can be used in the medical field to develop mobile health (mHealth) applications, which are designed to make treating patients with chronic illnesses more effective. The rapid pace of digitization and the burgeoning industry of e-commerce are providing a strong incentive for small and medium-sized businesses to develop online shopping applications and broaden their customer base. This is because the e-commerce industry is becoming increasingly competitive. This, along with the ever-increasing demand for cutting-edge social networking and gaming applications, is also contributing to the expansion of the market.

In addition, market participants are introducing advanced MADPs, which make it possible for developers to build multi-channel applications equipped with artificial intelligence (AI) features. Additionally, it is anticipated that the growing trend of smart devices, such as wearables and speakers that use mobile applications to access features, will present leading manufacturers with lucrative opportunities in the future.

Market Dynamics

Mobile App Development Market Drivers

Increasing Prevalence of Mobile Devices to Impede the Market Growth

There has been a rapid proliferation of mobile technology all over the world. Nearly everyone possesses a mobile device, with smartphones accounting for more than half of all mobile connections. However, the growth of mobile technology to this point has not been uniform, either between countries or even within individual countries. People living in developed economies are more likely to use the internet and social media, have mobile phones (especially smartphones) and have a greater likelihood of owning a mobile phone than people living in developing economies. Even in advanced economies, smartphone usage can vary significantly from country to country. In today's world, advanced economies are most likely to use mobile technology, the internet, and various social media platforms. In both developed and developing economies, younger people, those with higher levels of education, and those with higher incomes are more likely to have access to the internet. These factors are going to drive the market even further.

Recent Developments and Innovative Ideas to Aid Growth

The mobile application development industry has been significantly disrupting and rethinking the business world for a while now. To gain traction toward ideal growth and successfully reach the target market, almost every business needs to incorporate the most recent trends in mobile app development and broaden its marketing strategy. Consumers nowadays have come to expect services to come packaged with apps that have user interfaces that are intuitive and uncluttered. A void in the market for mobile application development led to the development of apps for on-demand development. As more people want their app development processes streamlined, the on-demand development model will likely become increasingly popular.

Mobile App Development Market Restraints

Significant Financial Investment for App Development to Restrict Market Growth

The operating system or platform, the level of complexity of the product, the density of features, the location of the vendor, and several other aspects are all contributors to the wide range of costs associated with the development of mobile applications. The most cost-effective types of applications to create are the most fundamental ones, such as clocks, calculators, and simple games. These solutions can be implemented without a network connection or backend development in about a month. Examples of data-driven applications include calendars, maps, and weather solutions. These apps take in a large amount of information, process it, and then share the results with users. These apps have seen a decline in value in recent years and, in most cases, are released as by-products. Social network apps are self-explanatory; examples include Facebook, Instagram, and LinkedIn. They are responsible for managing millions of user interactions and chats and enabling users to share information.

Mobile App Development Market Opportunities

Growth of Artificial Intelligence to Boost Market Opportunities

The industry of developing mobile applications is one of the most promising fields for artificial intelligence. Users worldwide are drawn to the concept of having a personal assistant to help them with their routine responsibilities. Nevertheless, the potential for smart apps goes well beyond the realm of digital assistants. Artificial intelligence is used in mobile applications today to improve user satisfaction significantly.

The development of AI-powered mobile applications has emerged as the new digital frontier for businesses, thanks to recent technological advancements and shifting preferences among customers. The primary technology companies are incorporating this artificial intelligence (AI) algorithms into various products to secure users more effectively within their brand ecosystems. The technology enables businesses to engage more effectively with their customers, thereby creating additional motivation for customers to utilize the businesses' services.

Regional Analysis

The global mobile app development market is segmented into three regions, namely North America, Europe, and Asia-Pacific.

The global mobile app development market in North America is dominating, and many players in the region are responsible for the high share. These players include Apple Inc., Google LLC, Hewlett Packard Enterprise, Netflix Inc., and Microsoft Corporation. Strong consumer spending within the app, high levels of smartphone penetration, and relatively more mobile app downloads contributed to the company's increased market share.

It is anticipated that the Asia Pacific region will emerge as the regional market with the fastest growth due to high internet penetration and smartphone adoption. It is expected that India and China will continue to be the major markets, providing substantial opportunities for growth to all participants throughout the mobile application ecosystem. In addition, rising levels of discretionary income, in conjunction with various government initiatives such as Digital India, are anticipated to positively impact the expansion of the regional market in the years to come. Additionally, the accessibility of low-cost mobile data usage packs and networking advancements are essential growth boosters contributing to the region's growth.

Segmental Analysis

The global mobile app development market can be segmented into different categories such as marketplace platform, categories, end-user, and region.

The Apple store sector was the most successful in the overall market. The relatively higher monetization rate of iOS apps in terms of revenue gained from premium apps and in-app purchases is the primary factor contributing to the platform's disproportionately large market share. Additionally, an increase in the number of iPhone and iPad users worldwide is further contributing to the segment's growth. In addition to this, consumers are spending more money on mobile games.

In addition, the Google Play store segment accounted for the highest share of the market in terms of the number of downloads, and it is anticipated that it will continue its dominance over the market throughout the forecast period. Additionally, there has been a significant increase in the number of smartphones sold that run the Android operating system over the past few years. Many new competitors, such as OnePlus and Xiaomi Corp., have threatened the established and dominant players, such as Samsung and the iPhone.

New Android smartphone manufacturers have made a greater variety of mobile applications available on Google's Play Store. Throughout the period under consideration, introducing a diverse selection of mobile applications and a sizable customer base ensures a strong growth prospect for the Google Play store. The mobile application market was divided into different categories, and the gaming application category held the largest revenue share.

Additionally, it is anticipated that the segment will maintain its dominance throughout the forecast period due to an unprecedented rise expected in the gaming population and, as a result of this rise, the number of mobile gaming applications in economies such as China and India. In addition, three primary operating system platforms are used to develop mobile games. These platforms are Android, iOS, and Windows. Android OS is responsible for a sizeable portion of game downloads in today's market. Still, iOS generates significantly more revenue because games on iOS are paid for. It is anticipated that the music and entertainment application segment will experience significant growth in the market.

Mobile music and entertainment applications such as Netflix, HBO NOW, Tinder, Spotify, YouTube, Amazon Prime, and Hulu are included in this segment, amongst others. The music and entertainment application market was led in terms of revenue generation in the United States by Netflix, with YouTube coming in a close second. Because of the ever-increasing demand for streaming services, the number of people using music and entertainment apps has skyrocketed in recent years. Users of live-streaming apps like Netflix, YouTube, and Instagram can broadcast live videos to a larger audience and engage with that audience daily.

Recent Developments

• In February 2022, Cognizant was selected by Volvo Cars for Finance & Accounting and Procurement Business Process Services.