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Mobile Industry Is Expected to Contribute $4.8 Trillion to Total GDP in 2023

Posted Feb 27, 2020

When it comes to shopping, communicating, gaming, streaming, and even socializing, it is no secret that mobile apps are making our lives much easier in a way that we couldn’t have predicted. In this developing world of technology, 98% of Gen Z (those born between 1997-2012) has a smartphone and mobile apps have become indispensable in our daily lives. A new report from App Annie shows all the details in terms of revenue and downloads about apps, macro mobile trends, mobile gaming, streaming, and retail for the past four years, focusing on 2019 especially.

204 Billion App Downloads Makes $120 Billion Revenue Worldwide in 2019
Total app downloads grew 45% in just three years and 204 billion apps were downloaded worldwide in 2019. This makes for very impressive results because this excludes re-installs and app updates. Mature markets like the U.S., Japan, and South Korea have seen downloads level off. Downloads in 2019 alone topped 12.3 billion in the U.S, 2.5 billion in Japan, and 2 billion in South Korea while growing markets like India, Brazil, and Indonesia have also pushed download numbers.

Games are making up 72% of total App Store spend and subscriptions in non-gaming apps saw an incredible rise, 18% to 28% in just three years. Downloaded apps made $120 billion worldwide in 2019 and the mobile industry is expected to contribute $4.8 trillion to total GDP in 2023. Meanwhile, China remains the largest market with 40% of the total global app spend.

Brand Advertisers Accept Gaming as a New Measurable Medium
Games have always been used for performance advertising but as the mobile world is changing, companies have started to increase running branding campaigns in mobile games. One of the biggest reasons that gaming inventory is effective for brands is that it offers full-screen video formats.

Casual Games Are Still The Most Popular Game Genre
Since mobile is the most popular game form in the world, spending on mobile games saw 25% more spend compared to consoles and Mac/PC gaming. Casual genre games, which are led by Arcade and Puzzle games, are the most downloaded games globally in 2019, covering a total of 82% of global gaming downloads. Since gamers like to switch between multiple Casual games, many companies leverage a portfolio of Casual titles to retain a high overall user base.

More Games Than Ever Before Surpassed $5 Million Annual consumer Spend
In 2019, 17% more games surpassed annual consumer spend of $5 million. Additionally, games that exceeded $100 million annual spend in 2019 saw a huge 59% growth compared to two years prior, demonstrating the irrepressible popularity of mobile gaming.  

More Report Highlights

  • In the U.S., there were over 106 million downloads of the Top 20 IoT (Internet of Things) apps in 2019 alone.
  • The average user spent 3.7 hours per day on mobile.
  • Gen Z is expected to surpass Millennials as the largest generation by the end of 2019, comprising of roughly 32% of the population.
  • Mobile gaming is on track to surpass $100B across all mobile app stores in 2020.
  • Consumers spent 50% more sessions in Entertainment apps in 2019 than in 2017 globally.

About App Annie
App Annie is a decision­-making platform for the mobile app economy. The company combines the analytics of one’s own apps with a granular understanding of the competition and market to provide a unique 360­-degree view of one’s mobile business. App Annie’s The State of Mobile 2020 report is an annual appraisal that provides insight into mobile’s expansive impact across industries and the global economy, highlighting publishers and brands that are outperforming their peers.

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