App Store spend forecasted to grow five times faster than global economy in 2019

The worldwide app economy is in a robust state of health according to new research – making now an ideal (and lucrative) time to take up our mobile app development business opportunity.

According to research by firm App Annie, which specialised in mobile intelligence and data, worldwide gross consumer app spending is forecasted to hit a colossal $122 billion during the course of 2019. This amount is based entirely on consumer in app spend projections and means that the predicted totals will see the app market grow a staggering five times faster than the global economy before 2020.

Gaming a key driver

App Annie also emphasises that those growth projects are based wholly on consumer in app spend only, which refers both to the cost of purchase of an app and then any in-app purchases made.

In terms of the focus on that in app spend, gaming is expected to be a huge revenue driver. Consumer spending for mobile gaming is expected to continue to rise and will surpass the amount that gamers spend elsewhere by a fair margin.

China continues to lead the way with consumer spend

From a location standpoint, China will make the largest contribution to the $122 billion in app spend. In-app subscriptions are one area where app developers can expect to see an increasing demand – though this is one development which may have other implications, specifically as app developers continue to rail against the large commissions charged by Apple’s App Store and an ongoing legal battle around this very topic, Spotify and Netflix are just two of the high profile names firing shots at Apple by exploring ways to circumvent the subscription commission.

App advertising and other revenue streams

Over and above that direct app spend, there are additional streams of revenue which bolster the app industry globally. A key source for example is app advertising and commerce or purchases driven by apps that may complete outside of the app store environment itself. One example would be the funds spent on the Uber app to pay for journeys or on Just Eat when a takeaway order is placed.

Overall, global digital ad spend for mobile is expected to grow by 50% to $155 billion this year. Over half of apps are also likely to further grow their revenue with in-app advertising offered on their own app.