The app industry has experienced tremendous growth in recent years, with millions of people downloading and using apps daily, leading to substantial revenue growth.
The worldwide app market has generated a total revenue of $543.50 billion as of 2023.
Estimates show that the gaming industry accounted for 62% of app revenues in 2022, resulting in a global app market revenue of $431 billion. Mobile apps generated over 318 billion U.S. dollars in revenue in 2020, indicating a significant increase from the previous year.
The mobile games and social networking app segments were the primary contributors to this growth. Experts predict that this trend of growth will continue, with most segments projected to have increasing revenue in the coming years.
The app industry has been expanding rapidly over the years, with millions of people downloading and using apps every day. The revenue generated from these apps has seen significant growth, with the market experiencing a surge in revenue year after year.
As of 2023, the total revenue from the worldwide app market reached $543.50 billion.
According to estimates, the gaming industry accounted for 62% of app revenues in 2022, resulting in a total revenue of $431 billion in the global app market.
In 2020, the global revenue generated by mobile apps surpassed $318 billion, marking a substantial increase from the previous year. The mobile games and social networking mobile app segments emerged as the strongest contributors.
Going forward, industry experts predict that this growth trend will persist, with revenue across most segments projected to continue increasing in the coming years. By 2025, the revenue is expected to reach an impressive $613 billion.
Over the past few years, Apple's App Store has maintained its position as the leader in app revenue, consistently accounting for around 62-64% of market share.
Google's Play Store, on the other hand, has held a smaller but still notable share, hovering between 36-38%.
Shopping apps have the highest revenue per download followed by social networking and news & magazines. The medical segment has the lowest revenue per download.
The total average revenue per app download has increased from $1.41 in 2017 to $2.07 in 2023. The revenue per download for most segments has increased or remained stable over the years.
However, some segments like finance and travel have shown a decline in revenue per download.
In 2022, the highest-grossing apps on the Apple App Store are Tinder and TikTok, followed by Honor of Kings, Candy Crush Saga, and Puzzle & Dragons. Disney+, Game for Peace, Genshin Impact, Monster Strike, and Tencent Video complete the top ten list.
In 2022, Coin Master earned $48M from Google Play Store, with TikTok and Candy Crush Saga ranking second and third, respectively.
The majority of highest-grossing apps were games.
China has consistently held the top spot, with mobile app revenues increasing from $47.66 billion in 2017 to an estimated $193 billion in 2023.
The United States is in second place, with estimated $178.5 billion in 2023. Japan ranks third, with revenues increasing to an estimated $50.41 billion in 2023.
Other regions in the top 10 include the United Kingdom, South Korea, Germany, Canada, Australia, France, and Brazil.
Mobile apps generate revenue mainly through ads and in-app purchases. In 2021, ads brought in over $208 billion and in-app purchases generated about $185 billion.
While freemium apps are projected to make more money in the future, paid apps are expected to generate less than $5.7 billion by the end of 2023.
Ch Daniel is the co-founder of SignHouse and chairman of the CH Group. Daniel is leading the development of SignHouse's product, as well as strategising how else the company can reach its main mission: empowering 100M+ to use the world's most efficient document organisational tools.