Mobile Application Market Expected to Reach $777.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Mobile Application Market," The mobile application market was valued at $208.46 billion in 2022, and is estimated to reach $777.4 billion by 2032, growing at a CAGR of 14.4% from 2023 to 2032.

The mobile application market has experienced exponential development and innovation over the years with the widespread use of smartphones and evolving needs of customers, mobile applications, primarily referred to as apps, have merged seamlessly into the customer’s daily lives with a vast range of features and services. The mobile application has completely changed the way people interact, work, or shop, Due to COVID-19 pandemic the market had major economic effects. While some industries experienced growth in revenue, others witnessed difficulties in monetization and operational disruptions. The pandemic, however, gave app developers the chance to develop applications for contactless payment, medical, online education, and remote work.

The main factors that propel the expansion of the market are rise in variable device use and expanding client base in the e-commerce sector. Surge in enterprise applications, more attention on apps specifically utilized for health & fitness, strong download rates, and in-app purchases for gaming apps boost the growth of the market. However, the absence of high-speed connectivity in developing and underdeveloped areas as well as businesses' reluctance to develop their own applications are anticipated to restrain market expansion. In addition, rise in digitization investments, increased adoption of internet of things technologies, and mobile connectivity of smart items are anticipated to offer significant opportunities for market expansion in the future.

Furthermore, factors such as rise in variable device use and expanding client base in the e-commerce sector. Surge in enterprise applications, more attention on apps specifically utilized for health & fitness, strong download rates, and in-app purchases for gaming apps boost the growth of mobile app market. However, the absence of high-speed connectivity in developing and underdeveloped areas as well as businesses' reluctance to develop their own applications are anticipated to restrain market expansion. In addition, rise in digitization investments, increased adoption of internet of things technologies, and mobile connectivity of smart items are anticipated to offer significant opportunities for mobile application market forecast.

On the basis of the application, the gaming segment dominated the mobile application market analysis in 2022 and is expected to continue this trend during the forecast period, owing to owing to rise in number of mobile gaming application in developing nations such as China and India. A wider percentage of the population now has access to gaming experiences on their mobile devices due to improving cost and availability of smartphones. However, the healthcare and fitness segment is expected to exhibit the highest growth during the forecast period, owing to the growing rate of obesity and increasing number of health issues, which drives the adoption of health applications. In addition, surge in awareness among the people regarding weight loss, calorie intake, and proper nutrition, thereby fuels the popularity of these applications.

By region, Asia-Pacific dominated the market share in 2022 for the phone application market. The same region is expected to exhibit the highest growth during the forecast period, owing to vast and diverse population, leading to the creation of region-specific or culturally relevant apps. In addition, with the expansion of internet connectivity and the increasing availability of high-speed mobile data, more people in Asia have access to the internet.

The global adoption of smartphones is growing, creating a sizable opportunity for the mobile app market. The potential user base for phone app grows as more people get access to smartphones, which increases demand and usage. This gives app developers the chance to target new markets and serve a variety of user categories. Mobile phone application now have more options due to the quick development of technologies, for instance artificial intelligence (AI), augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT). Through the use of these technologies, developers can produce new products for gaming, education, healthcare, retail, and other industries as well as immersive and interactive experiences, personalized suggestions, and more. Making use of this cutting-edge technology can help to reach new customers and create ground-breaking mobile phone application. The adoption of remote work and collaboration tools has been pushed by the COVID-19 pandemic. This pattern is anticipated to persist even after the pandemic, providing chances for developers of mobile apps to come up with tools that help with distant work, virtual meetings, project management, and team collaboration.

Key Findings of the Study

• By type, the Apple app store segment accounted for the largest mobile application market share in 2022.
• By application, the gaming segment accounted for the largest mobile application market size in 2022.
• Region wise, Asia-Pacific generated the highest revenue in 2022.

The global mobile application industry is dominated by key players such as Microsoft Corporation, Hewlett Packard Enterprise Development LP, Apple Inc., Intellectsoft US, Cognizant, Google LLC, Verbat Technologies, International Business Machines Corporation, CA Technologies, Inc., and China Mobile Limited. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, which help to drive the growth of the mobile application industry globally.