Sensor Tower publishes its 2020-2024 App Market Forecast. According to the predictions analyzed through the Sensor Tower’s Store Intelligence Data over the two most used app stores, the Apple’s app store and Google Play, consumer spending on the mobile app will increase up to $171 billion by 2024, these are twice the digits the app market is witnessing as of now in 2020.
The recent catastrophic coronavirus pandemic has left an economic strain on all consumer markets, including the app markets. However, 2020 will only see a little change in the market buying power in comparison to the predictions made by the forecasts, due to the reduced purchasing power of the consumers. Through previous analysis of both the Apple App Store and Google Play downloads and consumer engagement, the forecast predicted a rise in the market by 21% at $174 billion. But the recent calculations, after the inclusion of loss faced due to the COVID-19, show a decreased alteration of around 2% or $3 billion, bringing down the market growth rate to 15% from 15.7%. Whereas, individual analysis of the two app stores project that the Apple Store will show a growth rate of 15.8% and the Google Play Store will endeavor a growth rate of 13.2% by 2024 regardless of the economic strain caused by the coronavirus pandemic. Both of these growth statistics are considerably high standing at 1.7 times up in comparison to the current market development rate.
In light of the recent events following the coronavirus lockdown, the app market witnessed a sudden increase in app downloads by around 5%. Although the downloads of all apps saw a slight decrease over time, it did leave a positive impressionable change in the consumer market. After taking in consideration the new data, it is expected that the first-time installation and app downloads in 2024 will reach up to around 9.8% at a value of $44.5 billion, which shows a striking increase of 0.8% from the previous forecast data, prior to the coronavirus’ worldwide outbreak. In comparison to the data extracted from 2019 for comparison purposes, the market for first-time downloads will see a never before enormous skyward growth between 45% to 65%. With this information, it is easy to interpret that the app market will see a long-lasting effect on its consumer base even after the economy goes through economic uncertainty.
Moreover, the sensor tower’s forecasts also reflect an even greater increase in the market for gaming apps. Spendings on such mobile gaming apps are expected to reach $72.6 billion worldwide with a growth rate of first-time installs to be around 41% by 2024. Currently, the growth rate in the gaming apps is at 10% annually, according to data extracted for the years 2018 and 2019. The predictions also foresee non-game app downloads to exceed gaming app downloads by 2024. This will be the first-time non-gaming apps will see a rise in their usage and market in comparison to the gaming app market. The growth is mainly dependent on the progression of non-gaming app subscription revenues.
After carefully re-analyzing all data for app markets prior to the coronavirus pandemic, we have reached to a new potential outcome and forecast, keeping in mind all the external factors that already have affected, and might continue to affect the respective market. The up-to-date estimates witness a surge in app adoption, engagement and downloads; and leads to the conclusion that the app market will be a major positive driver for the economy, investors and developers through 2024.