- App users in developing markets are expected to contribute the most dramatic rises in spending, attention and downloads.
- Consumers will spend more than $40B in entertainment apps in 2030.
So far, the games sector has pulled in the big bucks for the mobile apps history and that tide is about to shift.
According to data.ai’s Mobile App Market Forecast 2030, mobile apps are set to outpace games in consumer spending by 2030.
By 2030, the annual spend on apps will be 50.3 per cent of the market, up from 37.4 per cent in 2023 while the annual spend on apps will be 49.7 per cent of the market, down from 62.6 per cent in 2023.
Jonathan Briskman, Principal Market Insights Manager at data.ai, said in the blog that mobile consumers are set to spend 58 trillion hours using apps over the decade and spend $2 trillion while the app economy is projected to soar to $2.2 trillion by 2030, with a staggering $288 billion anticipated in 2030 alone.
“It’s a truly remarkable performance – and a testament to the enduring pull of the app as an entertainment and utility platform. And don’t forget the $2.2 trillion revenue haul only reflects direct spending. It doesn’t account for the vast sums earned by in-app advertising (which hit $362 billion in 2023 alone),” he said.
The positive forecast shows how robustly the app economy has shaken off its only “blip” in 15 years, he said.
“That came last year due to a combination of global inflation, shrinking disposable income, privacy changes and a pandemic market correction.”
Weathering the storm
Mobile games spending saw huge growth in 2020 and 2021 as consumers were stuck at home during the pandemic with limited options for entertainment. This corrected in 2022 as consumer spending declined across most genres, including particularly large declines in RPG, Strategy and Simulation.
After a slight dip in 2023, mobile games are expected to bounce back in 2024 and beyond. Mobile game downloads will climb from 87.9 billion in 2023 to 119.7 billion in 2030, a CAGR of 4.8 per cent.
Lexi Sydow, Corporate Marketing Director at Sensor Tower, said that mobile continues to weather the storm.
“Mobile is creating the wave of consumer transformation and by 2030, will unlock trillions in economic value.”
The global surge in mobile device ownership and the affordability of data has driven demand for Short Video apps.
The report forecasts that global spending on entertainment category apps such as OTT and Short Videos will make up 18 per cent of annual consumer spend in 2030, driven by 120 per cent growth between 2023 and 2030.
It adds that app users in developing markets are expected to contribute the most dramatic rises in spending, attention and downloads.
Entertainment is king
Mature market consumers will spend the most (the United States, China, Japan and Korea will make up two-thirds of consumer spending in 2030), but growth will come from other regions, with Central America, South America and Africa registering 12.0 per cent, 10.9 per cent and 10.8 per cent seven-year compound annual growth rates, respectively.
“Entertainment is the top app genre by consumer spending, with apps like TikTok and YouTube leading the field. TikTok has continued to raise the bar and became the first app to surpass $1 billion in consumer spend in a single quarter in the first quarter of 2023.” The report said.
Other top genres are also expected to see strong growth of around 12-13 per cent between 2023 and 2030.
Examples of top apps include Tinder (Social Media – Dating), Google One (Utilities & Productivity – File Management) and Piccoma (Books & Reference – Comics).
Downloads in Asia will climb from 177 billion in 2023 to 245 billion in 2030, averaging 4.7 per cent annual growth, Briskman said and added that Asia includes three of the top five markets (#1 China Mainland, #2 India and #5 Indonesia).
“Asia’s growth will outperform other top regions like Europe and North America. South America will surpass North America to rank as the third region by 2030. South America’s downloads will climb 37 per cent between 2023 and 2030 (4.6 per cent CAGR), exceeding North America’s 25 per cent growth (3.2 per cent CAGR).”