App stores saw record 204 billion app downloads in 2019, consumer spend of $120 billion – TechCrunch
Consumers downloaded a record 204 billion apps in 2019, up 6% from 2018 and up 45% since 2016, and spent $120 billion on apps, subscriptions and different in-app spending in the previous 12 months. The common cellular consumer, in the meantime, is spending three.7 hours per day utilizing apps. This knowledge and extra comes from App Annie’s annual report, “State of Mobile,” which highlights the most important app tendencies for the previous 12 months, and units forecasts for the years forward.
According to App Annie, the record progress in cellular downloads in 2019 may be attributed to the expansion happening in rising markets like India, Brazil and Indonesia, which have seen downloads soar 190%, 40% and 70%, respectively, since 2016. Meanwhile, obtain progress in the U.S. has slowed to only 5% throughout that very same time, whereas China saw 80% progress.
That doesn’t imply customers in mature markets aren’t downloading apps, solely that the expansion in year-over-year obtain numbers is beginning to stage off. Still, these extra mature markets proceed to see massive numbers of installs, with greater than 12.three billion downloads in the U.S. in 2019, 2.5 billion in Japan and a couple of billion in South Korea.
The record numbers are notable additionally, on condition that App Annie’s evaluation excludes re-installs and app updates.
App retailer consumer spending was on the rise in 2019, as effectively, with $120 billion spent on apps — a determine that’s up 2.1x from 2016. Games proceed to account for almost all (72%) of that spending, however the shift towards subscriptions has performed a job, too. Last 12 months, subscriptions in non-gaming apps accounted for 28% of consumer spending, up from 18% in 2016.
Subscriptions are actually the first approach many non-gaming apps generate income. For instance, 97% of consumer spending in the highest 250 U.S. iOS apps was pushed by subscriptions, and 94% of the apps used subscriptions. On Google Play, 91% of the consumer spending was subscription-based, whereas 79% of the highest 250 apps used subscriptions.
In specific, relationship apps like Tinder and video apps like Netflix and Tencent Video topped 2019’s consumer spend charts, due to subscription income.
Mature markets, together with the U.S., Japan, South Korea and the U.Okay. are serving to to gasoline consumer spending throughout each video games and subscriptions, App Annie discovered. But China stays the most important market by far, accounting for 40% of world spend.
App Annie additionally forecast that the cellular business will contribute $four.eight trillion to the worldwide GDP by 2023.
The report moreover recognized a number of cellular tendencies from 2019, together with the cellular app connection to the Internet of Things and good dwelling gadgets (106 million downloads for the highest 20 IoT apps final 12 months); the massive cellular engagement by Gen Z (three.eight hours per app per 30 days, among the many high 25 non-game apps, on avgerage); and cellular advert spend’s progress ($190 billion in 2019 to $240 billion in 2020).
Ad spending mixed with consumer spending is anticipated to achieve $380 billion worldwide by 2020, App Annie forecast.
Gaming was given a giant breakout part, given its contribution to consumer spending.
Consumer spending in cellular gaming was 2.4x that of Mac/PC gaming, and a couple of.9x greater than recreation consoles. In 2019, cellular gaming saw 25% extra spending than all different gaming, and is on observe to surpass $100 billion throughout all app stores by subsequent 12 months.
Casual gaming (led by Puzzle and Arcade) was essentially the most downloaded kind of video games in 2019. Meanwhile, core video games (e.g. Action, RPG, and many others.) — which have been solely 18% of downloads — accounted for 55% of time spent in high video games. PUBG Mobile was the No. 1 core recreation (motion) on Android in 2019, in phrases of time spent, whereas Anipop (puzzle) was the highest informal recreation.
Core video games additionally accounted for almost all (76%) of recreation spending, adopted by informal (18%), then on line casino (6%).
In 2019, 17% extra video games surpassed $5 million in consumer spending versus 2017. And the quantity of video games to high $100 million grew 59% in comparison with two years prior. Despite the sizable progress in revenues, App Annie additionally pointed to new fashions in cellular gaming, like Apple Arcade, which is giving different varieties of video games an opportunity to thrive. Unfortunately, no third-party agency is ready to observe Arcade revenues, which is able to grow to be a evident blind spot for App Annie in the years forward.
App Annie additionally examined different sizable segments of the cellular marketplace for tendencies, together with fintech, retail, streaming and social. Some of the extra vital findings included: the fintech app consumer base progress topping that of conventional banking apps; procuring app downloads saw 20% year-over-year progress to achieve 5.four billion downloads; streaming progress that included 50% periods in 2019 in comparison with 2017; and 50% of time spent on cellular was spent in social networking and communication apps.
TikTok was given particular consideration, given its speedy progress final 12 months. Time spent in the short-form video app grew 210% year-over-year in 2019 globally. Even although eight out of each 10 minutes spent in TikTok have been by customers in China, the app’s utilization skyrocketed in different markets as effectively, App Annie mentioned.
Industries App Annie recognized as being reworked by cellular in 2019 included ridesharing, quick meals/meals supply, relationship, sports activities streaming, plus well being and health. The full report provides a number of extra particulars and cellular tendencies for every of these.
One greater spotlight was that digital-first procuring apps nonetheless had three.2x extra common month-to-month periods per consumer in contrast with apps from conventional brick-and-mortar retailers (dubbed “bricks-and-clicks” apps in the report).
App Annie additionally compiled its personal checklist of the highest apps of 2019 by energetic customers, downloads and income. Facebook apps nonetheless led by engagement, with WhatsApp, Facebook and Messenger in the highest three spots and Instagram as No. 5. And they maintained related positions by downloads, solely swapping locations with each other.
Consumer spending was a distinct story, with Tinder producing essentially the most income in 2019, adopted by leisure and streaming apps like Netflix, Tencent Video, iQIYI, YouTube and others.