App Annie Predicts the Future of Mobile App Economy: Could Cross $100B Mark by 2020

App Annie Predicts the Future of Mobile App Economy: Could Cross $100B Mark by 2020

The ever growing presence of mobile apps is not the only reason behind the app economy’s tremendous growth in the last decade or so. Well, there are other contributing factors such as the growing mobile market capitalization, app developers, online marketers and not to forget, the ever so growing number of mobile users. Coming back to app economy, if App Annie’s latest mobile app prediction is anything to go by, then in the next five years it’s going to get doubled to be about $101 billion.

Increasing mobile app usage and growing smartphone searches are the two factors that were considered while coming to this conclusion. App Annie’s forecast is essentially targeted at giving businesses, brands, venture capitalists and not to forget, the app developers some future insights about the global opportunities arising out for the platform in the next five years.

Interestingly, looking at the present stats gives further indication of what can be expected from the future. In 2015, mobile games contributed to almost 85% of the app market revenue i.e. $34.8 billion on a global basis. This figure is expected to reach the $41.5 billion mark by 2016 and around $74.6 billion by 2020.

As per the predictive insights, you can expect other categories to overtake games in the long run. A few years ago, games or media agencies were the only ones to come out with an app. But now the scenario has changed quite dramatically. App publishers no longer come from a niche category or industry. They come from banking, retail, airlines, travel industry and also, the government circles. Sponsored by investors and hedge funds, the mobile app industry is attracting a lot of market value and actual revenue is pouring in from all quarters.


Mr. Danielle Levitas, Senior vice-president – Research Team, App Annie was reportedly quoted as saying that the report was leveraged from more than 10,000 sources to uncover a variety of insights. In 2016, the global mobile app market is projected to expand by 24% to reach $51 billion in gross revenue (the amount consumers spend on mobile apps via stores) across all app stores. By 2020, gross revenue across the app stores will exceed $101 billion, globally.

While the overall app revenue growth is expected to grow in large markets including US, Japan and China, App Annie report expects emerging markets such as India, Mexico and Indonesia to also present tremendous growth opportunities. The most populated country, China is expected to overtake the US in total revenue from the app stores during the first half of this year. It already got past US in terms of app downloads last year.

The app revenue and its usage is not necessarily affected by regional recessions in countries such as Argentina and Brazil, which registered a strong growth last year. In fact, Brazil is expecting a revenue growth of 40% in 2016. This is similar to the growth seen by smartphone and app markets in the US during the recessionary period of 2008 to 2010, explains Annie in the latest report.

On a global basis, from 2014 to 2015, the total time spent on Android apps increased by 63%. The advent of newer technologies like wearables, virtual and augmented reality, home internet, etc. will further boost the usage of mobile apps.


Finally, expect the app downloads from app stores to increase by 33%, to touch a 147.3 billion mark in 2016 and reach the 284.3 billion mark by 2020. Globally, the app store downloads are likely to grow from 111.2 billion last year to 284.3 billion by 2020.

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