App stores saw record 204 billion app downloads in 2019, consumer spend of $120 billion
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 other in-app spending in the past year. The average mobile user, meanwhile, is spending 3.7 hours per day using apps. This data and more comes from App Annie’s annual report, “State of Mobile,” which highlights the biggest app trends for the past year, and sets forecasts for the years ahead.
According to App Annie, the record growth in mobile downloads in 2019 can be attributed to the growth taking place in emerging markets like India, Brazil and Indonesia, which have seen downloads soar 190%, 40% and 70%, respectively, since 2016. Meanwhile, download growth in the U.S. has slowed to just 5% during that same time, while China saw 80% growth.
That doesn’t mean users in mature markets aren’t downloading apps, only that the growth in year-over-year download numbers is starting to level off. Still, these more mature markets continue to see large numbers of installs, with more than 12.3 billion downloads in the U.S. in 2019, 2.5 billion in Japan and 2 billion in South Korea.
The record numbers are notable also, given that App Annie’s analysis excludes re-installs and app updates.
App store consumer spending was on the rise in 2019, as well, with $120 billion spent on apps — a figure that’s up 2.1x from 2016. Games continue to account for the majority (72%) of that spending, but the shift toward subscriptions has played a role, too. Last year, subscriptions in non-gaming apps accounted for 28% of consumer spending, up from 18% in 2016.
Subscriptions are now the primary way many non-gaming apps generate revenue. For example, 97% of consumer spending in the top 250 U.S. iOS apps was driven by subscriptions, and 94% of the apps used subscriptions. On Google Play, 91% of the consumer spending was subscription-based, while 79% of the top 250 apps used subscriptions.
In particular, dating apps like Tinder and video apps like Netflix and Tencent Video topped 2019’s consumer spend charts, thanks to subscription revenue.
Mature markets, including the U.S., Japan, South Korea and the U.K. are helping to fuel consumer spending across both games and subscriptions, App Annie found. But China remains the largest market by far, accounting for 40% of global spend.
App Annie also forecast that the mobile industry will contribute $4.8 trillion to the global GDP by 2023.
Industries App Annie identified as being transformed by mobile in 2019 included ridesharing, fast food/food delivery, dating, sports streaming, plus health and fitness.
One bigger highlight was that digital-first shopping apps still had 3.2x more average monthly sessions per user compared with apps from traditional brick-and-mortar retailers (dubbed “bricks-and-clicks” apps in the report).
About the author:
Trident Technolabs is a web and mobile application development agency based in India. They have been in the industry since last 3+ years and have worked with clients around the world with startups, MNCs and individuals.
Connect on www.tridenttechnolabs.org or skype: varunchandak90