With global sales surpassing half a trillion dollars in 2019 alone, Apple’s App Store offers a flourishing dynamic and competitive platform for e-commerce for developers and companies worldwide
Image via Apple
Market research conducted by independent economists at the Analysis Group in a new study revealed the scale of the App store’s economy and where the highest value categories lie — mobile commerce (m-commerce) apps, digital goods and services apps, and in-app advertising. This encompasses the full range of the entire app ecosystem of the App Store that has spurred innovation in 175 countries, transforming the way that we connect, learn and work.
The App Store launched in 2008. Today, the App Store is home to almost 2 million apps and is visited by half a billion people each week across 175 countries, helping creators and curious people eager to learn and connect.
Image via Apple
“The App Store is a place where innovators and dreamers can bring their ideas to life, and users can find safe and trusted tools to make their lives better.”
The Analysis Group study looked at 2019 data to capture an accurate snapshot of the full App Store ecosystem, taking into account all sources of commerce. The study revealed that sales from physical goods and services accounted for the largest share of 2019 sales at $413 billion. In that category, m-commerce apps generated the majority of sales, and retail was the largest within this division at $268 billion. Retail apps included apps of traditional brick-and-mortar stores such as Target and Best Buy, and virtual marketplaces that sell physical goods, such as Etsy. They do not include grocery delivery, which is its own category.
Image by Jean-Marc Giboux | Credit: AP Images for Target
Other m-commerce apps that also generated significant sales from physical goods and services included travel apps such as Expedia and United, that accounted for $57 billion; ride-hailing apps, including Uber and Lyft, comprised $40 billion in sales; and food delivery apps, including DoorDash and Grubhub, making up $31 billion.
Billings and sales from digital goods and services totaled $61 billion. This category included apps for music and video streaming, fitness, education, ebooks and audiobooks, news and magazines, and dating services, among others. Games were the most popular apps within this category. Notable games of 2019 included “Mario Kart Tour,” which was the most downloaded game of 2019, and “Sky: Children of the Light” from indie developer thatgamecompany, which won Apple’s 2019 iPhone Game of the Year.
In-app advertising sales also accounted for $45 billion, and of that, 44 percent was derived from games. Non-gaming apps that generate substantial in-app advertising sales are often free to download and use, such as Twitter and Pinterest, though others also offer in-app purchases to access content, such as The New York Times and MLB.com.
Changes Due to COVID-19
As social distancing protocols have become common worldwide due to COVID-19, individuals have changed the way they live and are using more apps. Social apps help friends and families stay connected, while education and business collaboration apps are helping students and employees adjust to remote working environments. Food and grocery delivery apps have benefited from increased consumer demand at the same time that apps related to businesses that have faced restrictions, or those that require in-person interactions, have seen a sharp drop-off. Many brick-and-mortar businesses have also turned to mobile commerce, including some that may otherwise have been forced to close without access to this alternative and popular digital platform.
