Economy app: 10 trends for 2018
2018 will mark the tenth anniversary of the App Store and Google Play. Mobile applications have transformed our daily lives, and according to the latest figures from App Annie, they have a bright future ahead of them. In the third quarter of 2017, their revenue was $ 17 billion. As their income grows, their numbers keep increasing. In October, Google Play registered 150,000 additional applications and 50,000 for the Apple Store.
In the mobile applications sector, new trends are emerging, according to the specialist in analytics for mobile apps. Here are the 10 things to know for 2018:
1 / Over $ 100 billion spent on app stores
For the year 2018, App Annie forecasts a 30% increase in consumer spending around the world. In total, this amount is expected to rise to $ 100 billion. Even if the gaming sector remains the major player in the market with the highest turnover, growth will be sought in other categories.
2 / China, India and Brazil are driving growth
China will drive the global app market at a higher growth rate than any other country. The Middle Kingdom is also the country that records the largest consumer spending on the iOS App Store. In India and Brazil, the time spent on Android applications is exploding: 50% for the first and 30% for the second compared to last year.
3 / Curation promotes entertainment applications
At the end of October, Google Play recorded more than 3.5 million applications, while the App Store recorded 2 million. To allow users to discover new applications in the mass available, Google and Apple resort to curation. This method will continue in 2018. It will facilitate the discovery of entertainment applications, unlike “first-aid” tools (meal delivery for example) which will rely on word of mouth.
4 / Augmented reality arouses the interest of developers and consumers
If Pokemon Go and Snapchat have initiated the first uses in augmented reality (AR) on mobile, App Annie is betting on the growth of AR applications for the year 2018, thanks to technological progress and the launch of major initiatives to be planned on the side. tech giants – like Facebook, Google, Apple during their developer conferences, or Tencent, Alibaba or Baidu for Asia. There is also a renewed interest in these products, with the number of searches and downloads of RA applications rising sharply in the United States since September 2017.
5 / The video streaming market is fragmenting
The smartphone has revolutionized our uses, including that of video consumption. Video streaming and video on demand continue to be popular with users. App Annie predicts a sharp increase in consumer spending in this sector. For example, in one year (figures as of October 31, 2017), iOS has recorded an 85% increase in spending in this segment, while Google Play has announced growth of 70%. In terms of applications, users are less and less exclusive: for example, the share of streaming users in the United States (those who have at least one streaming app installed) who have installed at least four of the apps on their iPhone. Most popular streaming has grown by 30% in the space of a year. Actors such as Netflix, Snap or Disney thus intend to intensify their presence on mobile, a market whose turnover and commitment will continue to grow, pending probable consolidation.
6 / Mobile apps are essential in the customer journey
This year, 90% of sales during the Single Day were carried out via a phone or tablet. For 2018, App Annie believes that mobile applications are becoming more and more integrated into the customer journey: first for information, then as a full-fledged sales channel. The study takes the example of China where consumers order on mobile and collect their goods in stores.
7 / Food apps are developing
In 2018, restaurant aggregators continue to develop mobile, while home delivery is tackling premium markets. App Annie predicts that large groups (such as Grubhub, Just Eat, Yogiyo) will continue to target markets where supply is scarce and convert fast food lovers to app use. At the same time, delivery services, like UberEATS or Deliveroo, will gain share in premium markets where consumers are more inclined to pay more for quality experiences and access to high-end, more expensive and do not have their own delivery service. More quick-service restaurants are likely to counter the growing competition by partnering with apps offering delivery services (McDonald’s and UberEATS partnership). Like the video streaming industry, this market is expected to consolidate in the coming years.
8 / Voice assistants benefit from new features and seasonal effects
The voice assistant sector will conquer new consumers with the arrival in particular of the Google Home Mini or Alibaba and Baidu products. It is also a market sensitive to seasonal effects: for example, downloads from Alexa (Amazon) took off in October 2016 when Echo Dot was released, with renewed interest at the time of the release. Prime Day and end of year celebrations.
9 / The new European directive will promote the emergence of new app-based financial services
Finance applications could be disrupted by a new European directive, the PSD2. The latter will allow new players to offer secure financial offers.
10 / Peer-to-peer payment is developing new services
Finally, still in the FinTech sector, payment tools between individuals could develop new functionalities to retain their customers and compete with traditional banks. Social networks could also submit a P2P system to their users like WeChat does.