The report shows that despite the coronavirus outbreak, the mobile application market continues to grow in 2020, with new application downloads increasing by 7% year-on-year to 218 billion. Consumer spending on the app store also led to a year-on-year increase of 20%. The expansion of application downloads and the use of smartphones have greatly boosted mobile advertising spending. Indeed, when many professionals around the world lose their jobs due to the pandemic, this does help app developers increase their income.
Mobile analytics company App Annie stated in its “Annual Mobile Industry Report” that by 2020, consumer spending on app stores including Google Play, Apple App Store and third-party app stores will reach US$143 billion (approximately 10,45,988 crore). China leads the spending, followed by the United States and Japan.
By 2020, the time spent on mobile devices will also increase significantly-due to the COVID-19 pandemic that locks most of the world’s population in their homes. App Annie’s report mentions that, especially in the United States, the time spent on mobile devices is 8% more than the time spent watching live TV. The company pointed out that global consumers spend 3.5 trillion hours especially on Android phones.
In India, the average daily time spent on mobile has increased from 3.3 hours in 2019 to 4.6 hours. Similar trends have been observed in markets including China, Japan, South Korea and the United Kingdom.
The increase in time spent on mobile devices is not limited to specific groups of people. App Annie emphasized that, especially in the United States, the time spent by Generation Z, Millennials and Generation X/Baby Boomers has increased by 16%, 18% and 30% respectively from last year. However, there are some differences in which apps certain audiences spend the most time on.
Snapchat, Twitch, TikTok, ROBLOX and Spotify are the most likely applications among Gen Z users, while millennials prefer Discord, LinkedIn, PayPal, Pandora Music and Amazon Music. According to the company, on the other hand, most of the time of Gen X/baby boomers is spent on Ring, Nextdoor, Weather Channel, Kindle and ColorNote Notepad Notes.
Among other applications, TikTok beat the top social applications, with a year-on-year increase of 325% per user hour. Regardless of India’s ban and criticism of the government by markets including the United States, growth is the same. App Annie predicts that TikTok is expected to reach 1.2 billion active users in 2021.
However, WhatsApp has led the market competition including India. The country’s average time spent on instant messaging applications has increased from 17.2 hours in 2019 to 21.3 hours per month.
The time spent and the growth of app store downloads also helped developers earn more revenue in 2020. App Annie mentioned in the report that the number of app developers earning more than US$2 million (approximately Rs 14.62 billion) through the app store has increased by 25%. Apple also recently announced plans to reduce the commission rate from 30% to 15%. This move will help 97% of developers who make money through the App Store.
The mobile application market has also attracted investors. App Annie reports that from 2016 to 2020, global funding for mobile technology companies more than doubled over the previous five years. Especially in 2020, the investment capital poured into mobile companies has also increased by 27% year-on-year to US$73 billion (approximately Rs 5,33,939 crore).
In terms of mobile games, casual games dominated the market with 78% of total game downloads. Among us, Roblox and My Talking Tom Friends are the most downloaded games. It is believed that the mobile gaming market is expected to exceed US$120 billion (approximately Rs 877.728 billion) in consumer spending in 2021.
Except for mobile games, by 2020, except for China, the average annual growth of global financial applications is 45%. However, the situation in China is different. App Annie pointed out that this is due to new regulations in the peer-to-peer lending sector.
By 2020, people will spend most of their time indoors, so the annual report shows that streaming time on mobile devices will increase by 40%. Compared with the next closest app, the time spent by each YouTube user has increased sixfold. The report also said that it also ruled the market with the average time each user spends per month.
Commercial applications including Zoom and Google Meet also grew by 275% in the fourth quarter. This is because people mainly work from home and accept the concept of distance learning.
In the list of top apps with the most monthly active users worldwide, Facebook ranks first, its native apps rank first, followed by WhatsApp, Facebook Messenger and Instagram. However, TikTok became the most downloaded app in 2020, followed by Facebook, WhatsApp and Zoom.
In terms of games, PUBG Mobile leads the market in having the most monthly active users. “Candy Crush Saga”, “Ludo King” and “Among Us” ranked second, third and fourth. However, the most free download is Free Fire, followed by us, Subway Surfer and PUBG Mobile.
Tinder became the leading application with the most consumption this year, and in terms of mobile games, “King of Glory” beat the competition.
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