Want to make it big in the app economy? Learn Hindi or Portuguese

Research from App Annie highlighted emerging markets are set to account for 45% of global app revenue by 2020, with revenue growth expected to double figures in western economies.

Jamie Davies

June 9, 2016

2 Min Read
Want to make it big in the app economy? Learn Hindi or Portuguese

Research from App Annie highlighted emerging markets are set to account for 45% of global app revenue by 2020, with revenue growth expected to double figures in western economies.

Revenues are estimated to reach $102.5 billion and global mobile app store downloads will reach approximately 288 billion in 2020, as US, the Japan and Western European nations would expect growth to be around 12% CAGR, though this percentage grows to 29% when looking at the developing nations.

As of 2015, the APAC market accounted for approximately 52% of global downloads, and 55% of revenues, though these numbers are increased to 57% and 58% respectively by 2020. It would appear the majority of this growth has been driven by the emerging markets as between 2015 and 2020, the contribution to global downloads will increase from 66% to 75% and for revenues the increase with be from 30% to 49%.

India and Brazil are two countries listed were growth will be particularly strong, mainly due to a large population, strong performing economies and strong smartphone uptake. Estimates highlight there are approximately 200 million smartphone users in India currently, though this number is expected to increase to 317 million by 2019. Over the same period GDP in India was at around $2.09 trillion, and is estimated to rise to $3.1 trillion in 2020. Mexico, Indonesia and China also showed good potential.

First and foremost, games will drive the expansion in the emerging markets, though the more mature regions are beginning to witness more of a subscription based model. Whether this is to be the same long-term in the emerging markets is yet to be seen, as there is little data to suggest similar patterns. India for example would still be considered in the hyper growth stages of development, offering lucrative opportunities for developers who gain traction in the early days.

The report does shed light on some interesting statistics and could offer encouragement to app developers who have traditionally found monetization a difficult task, but it comes as no surprise to hear the report states there is likely to be more growth in emerging markets than mature ones.

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