App Annie has released its fourth annual Retrospective Report on the analysis of the top app market trends for 2016. The report covers the growth of the overall mobile app economy, focusing on which countries and industries are the most impacted.
App Annie notes a growth in both downloads and usage of apps as publisher revenue grew 40 per cent year-over-year – a growth over 2015’s rate for a total of $35 billion across iOS and Google Play stores. If one includes revenues generated through in-app advertising, third-party Android stores and app store revenue, then publishers have made over $89 billion in revenue.
App downloads grew by 15 percent worldwide across iOS and Google Play, with total time spent in apps increasing by 25 percent. Further, the report states the average consumer uses well over 30 apps per month across various markets.
“As technology and business models continue to evolve, apps are playing an even greater role in transforming, and creating opportunities for, companies and industries both established and new,” remarked Danielle Levitas, Senior Vice President of Research at App Annie in a press statement.
“We’re seeing major indications of this shift globally. App adoption is growing rapidly in emerging markets including India and Indonesia– while mature markets are seeing apps challenge and change traditional industries including retail, entertainment and banking,” he added.
According to App Annie, the key highlights for the 2016 Retrospective Report include:
1. The continued growth of the app economy, contrary to the myth that app downloads are dying.
2. India’s app market has grown massively and has surpassed US to be the number one country by Google Play downloads, from around 3.5 billion downloads in 2015 to over 6 billion downloads in 2016.
3. Downloads have increased by more than 13 billion, reaching 90 billion, across iOS and Google Play.
4. Usage, downloads and revenue increased worldwide, with total time spent in apps increasing by over 150 billion hours year-over-year, reaching nearly 900 billion hours in 2016.
The report also adds that Fintech (Financial technology) apps have grown in popularity. In addition, video streaming has gone big and is causing entertainment companies to rethink their business models. Consumers are also more willing to pay for subscription services in-app now rather than outside of the app store, e.g. Netflix.
The highest app revenue continues to be generated from games, thanks to the likes of Pokémon GO among many others. Gaming had a tremendously strong showing in 2016 with Pokémon Go taking centre stage. It made US$500 million in consumer spend in under 60 days, reaching a level of success that leaves behind some of the most successful traditional video games.