As smartphones take over the world, app usage and spends are soaring as well. The global app economy is poised to reach $6.3 trillion by 2021, according to a report by app analytics provider App Annie. The market was valued at $1.6 trillion last year. This sharp growth would be led by mobile commerce, which presently occupies 90 percent of app spends. Other drivers include digital payments, and in-app advertising. Also Read - Google is shutting this popular app used by millions of usersAlso Read - Top 5 free Android apps on Google Play store this week
Much of the spike would come from China and US, among the world s biggest smartphone markets, followed by Japan, UK and India (which is the fastest-growing mobile market). App Annie estimates that an average person would be spending $946 on mobile commerce by 2021. Last year, it stood at $344 per person. Also Read - 10 most downloaded mobile games in 2021 so far
The amount of time spent on apps is also rising and will reach 3.5 trillion hours in the next five years. That is as much time as 400 years. Clearly, commerce is the dominant portion of these numbers. As mobile payments become more widely integrated in apps and adopted by consumers, retail, ride hailing, grocery, travel, and many more, industries will drive (or get left out) of this transition, says Danielle Levitas, Senior Vice President, Research and Professional Services, App Annie.
Among the top-used apps are travel apps that are growing by 75 percent in many markets. Gaming apps are wildly popular in East Asian countries like Japan and South Korea where people spend more than three hours on mobile games every day. In emerging economies like India and Brazil, users are spending more than four hours daily on mobile apps. ALSO READ: Social media, messaging apps usage increased by 394 percent in 2016: Report
Consumer spends across app stores is growing as well and could reach $139 billion by 2021, says the report. Apple s App Store occupies the lion s share in app store purchases, and is projected to cross $60 billion in sales by 2021. In-app advertising too will witness sharp growth from $72 billion last year to $201 billion in 2021. As more people spend most of their waking hours on their mobiles, brand marketers are compelled to direct ad dollars to that platform.
Asia will be the fastest-growing with its app economy reaching $3.2 trillion in 2021. It ll be succeeded by the Americas and EMEA (Europe, Middle East, and Africa) which are expected to grow to $1.7 trillion and $1 trillion respectively.