• September 15, 2017

Today’s App Economy Reaches Trillions in Value

FHCweb

Today’s App Economy Reaches Trillions in Value

On average, those with smartphones use over 35 mobile apps per month. The top 20% of that number uses more than 45 each month. Over the past decade, smartphone applications have gradually become an integral part of our daily lives.

Phones themselves have involved into pocket-sized devices with the processing power greater than some computer models. Gaming, shopping, streaming media content, and managing finances are able to be done through mobile applications, making smartphones more vital than ever.

But, even with all the possibilities that mobile apps provide, their potential is even higher than expected.

Worldwide, the total time spent by mobile phone users on mobile applications in 2016 was over 1.6 trillion hours, which was an increase of over 50% from 2015. From these numbers, we can deduce that people spend approximately 2 hours per day on average utilizing mobile applications.

One of the heavy hitters of 2016 was Pokemon Go, which brought augmented reality to swathes of downloaders and brought in nearly $1 billion in consumer spending by the end of the year.

Market forecasts predict that yearly time spent on apps will exceed 2.5 trillion hours by 2021.

In most markets, interest and usage spikes at the product’s introduction and gradually tapers over time before reaching an equilibrium. With mobile apps, however, usage of staple applications like social media and banking have a significantly high usage frequency even years after they were implemented. Technological innovation is the reason behind this, as new updates and features are consistently provided.

The amount of usage varies from country to country and is dependent on the performance of the market they are in. Japan and the United States are ranked toward the top, while countries throughout Southeast Asia are in earlier stages of development.

As for the future app economy, new technology is constantly being developed that will help foster even more engagement.

At the end of July 2017, there were nearly 4 million apps available for mobile phone users to download. Throughout July alone, over 150,000 applications were added to the mobile app market. Through existing publishers, new companies, and even firms geared toward solely developing mobile applications, the influx of new apps shows no sign of slowing down.

Electronic wallets, virtual reality, smart homes, and other concepts that have not even been implemented yet will serve to be a solid foundation for mobile applications to build from.

As the app market grows, so do the monetization opportunities, making mobile apps increasingly enticing to investors and developers alike.

The average smartphone user is already spending a month’s worth of time every year using mobile applications. If market trends continue as they are expected to, this number will be much higher by 2021.

The mobile applications industry shows great promise in terms of long-term potential, and many entrepreneurs are going out of their way to capitalize upon it.

[Source]

Subscribe to our newsletter