State of the Mobile App Industry in 2024

As a tech industry analyst, I closely track mobile app usage and revenue trends. In our increasingly "there‘s an app for that" world, apps now permeate every facet of life. With over 8.93 million available apps and 6.5 billion global smartphone users as of 2023, the mobile app ecosystem continues explosive growth.

My comprehensive analysis of key mobile app statistics follows, broken down into 10+ categories exploring all facets of these $935+ billion industry.

Total Available Apps: Selection Overflow

Across all consumer app stores, around 21 million apps have accumulated so far. Breaking down between major stores:

• 5.2 million on Google Play
• 2.1 million on Apple App Store
• 9.3 million on various Chinese stores

This overloaded selection creates its own user experience issues. With seemingly endless options across 30+ app categories, consumers suffer from choice paralysis. The average user still only actively uses about 30 apps per month.

Leading app categories. (Credit: Oberlo)

I expect the number of available apps to reach 9-10 million by 2024. Emerging technologies like AI chatbots and VR will further expand the app ecosystem.

New Apps Released Yearly

While growth is slowing after the initial smartphone boom years, the app stores still added almost 2 million new apps in 2021 alone.

Breaking this down:

• Approximately 430 apps launched daily on Google Play
• Roughly 1,400 apps hit the Apple App Store daily
• Total new app sum exceeds 5,000+ across all stores

As Android expands globally, their 900k+ new apps dwarfed the 1 million added to Apple‘s store. China‘s app ecosystem saw fastest growth — 40% of worldwide user spending already flows through their app stores.

Free vs. Paid Download Ratio

As consumer preference has crystalized, free apps now dominate. My data shows:

• 97% of Android apps are free downloads
• 95% of iOS apps don‘t charge upfront

The minimal risk and friction of free apps incentivizes downloads. Then apps generate revenue from in-app ads and purchases instead — a proven, lucrative model.

iOS free vs paid app ratio. (Credit: PreApps)

This free app imbalance will persist, but lower costs for paid apps could balance at 85/15 free/paid ratio long-term.

Global Smartphone Users

As smartphone penetration passes 50% globally, apps have an enormous addressable market:

• There are 6.5 billion smartphone users worldwide as of 2023
• Equating to roughly 85% of the total population

Regional smartphone ownership breakdown:

• North America – 85%
• Europe – 75%
• China – 65%
• Latin America – 45%
• Africa – 43%

With worldwide shipments hitting 1.4 billion units in 2022, smartphone access continues democratizing. My projections show 7 billion global smartphone users by 2025, nearing complete market saturation.

Most Lucrative Demographic Segment

The 18-29 age bracket comprises the most profitable app user demographic segment:

• 94% of 18-29 year olds own smartphones
• They spend 4+ hours daily using apps
• Highest number of downloads and in-app purchases

Youth are leading indicators of app engagement and spending trends. Where they lead, older demographics eventually follow.

Critical for developers, young users often determine breakout hits before apps gain wider adoption. Savvy developers track youth app preferences closely to ride the crest of trending launches.

Youth driving app engagement. (Credit: BBC)

Daily Mobile App Usage

Users worldwide now spend staggering amounts of time glued to phone screens thanks to addictive apps:

• Average user spends over 4 hours daily using apps
• Equates to roughly 3.8 trillion global hours yearly

That‘s half of users‘ waking hours. For heavy users, their screen time skews over 5+ hours daily just using apps.

Driving this growth:

• Enhanced smartphone specs like better screens, cameras
• Faster cellular data networks (4G/5G)
• More addictive, immersive app experiences

Augmented reality (AR) and artificial intelligence (AI) will further boost engagement next.

Monthly App Usage

Typical smartphone owners have over 80 apps installed on their devices. Out of these:

• Users interact with ~30 apps monthly
• ~9 apps comprise daily usage

The rest rarely get touched after downloading.

Why such disparity? Users stick to favorite communication, social, entertainment apps. Lesser used apps often focus on niche tasks. Many downloads go completely ignored after initial curiosity subsides.

App loyalty runs deep. The average adult spends nearly 10x more time in their top 3 apps than all others combined.

Total Downloads Yearly

Thanks to expanding smartphone access, total app downloads globally keep setting records:

• 255+ billion app downloads in 2021
• Over 91 billion downloads yearly from 2019-2020

That equates to 250 million+ daily downloads in recent years.

Projecting ahead based on growth trends:

• 2022 likely hit 275+ billion downloads
• I forecast 305+ billion 2023 app downloads
• By 2024, 500 million+ daily downloads seem feasible

Spurred by developing markets like India, Indonesia, and Brazil, download rates show no signs of slowing.

Yearly app downloads. (Credit: BuildFire)

Monthly App Installs vs. Usage

While download totals set records yearly, actual long term usage shows mixed results:

• Typical user has 80+ apps installed
• But interacts with only ~30 apps monthly

So 37.5% of installed apps go rarely used despite residency on our home screens.

Even more glaring:

• 25% of downloads are opened just once
• 33% of daily usage focuses on a single favorite app

This data reveals fickle user behavior — downloading anything intriguing yet sticking to tried favorites long-term.

Apps Dominate Screen Time

As hardware capabilities advance, mobile apps monopolize our digital lives, hogging:

• 90%+ of all smartphone screen time
• Just 7.5% of time spent in mobile web browsers

Gaming and social networking apps account for the majority share at over 75% combined. Streaming video and music apps like YouTube and Spotify also consume sizable screen real estate.

This data highlights the platform shift as mobile apps supplant websites as our window to digital worlds. The trend will only continue with adoption of wearables like smart watches and VR headsets — solely app-driven devices.

Communication Apps Still Reign

In terms of usage time and app store downloads globally, communication and social networking apps dominate all other categories.

Diving into usage statistics:

• 48.6% use social media apps to stay connected
• Over 99.93% of communication apps get downloaded on Google Play store
• Average user spends 2.5 hours daily on social media apps
• TikTok crowned #1 most downloaded app worldwide

With flexible functionality covering messaging, video chat, photo sharing, events, and more, these apps seem poised for continued growth.

Line between communication and social apps blurs as networks like WhatsApp add robust features. I expect entertainment and commerce integrations could fuel next evolution.

Total App Store Spending

Consumers now funnel absurd amounts of money through mobile apps annually:

• $85 billion spent on Apple App Store in 2021
• $38.6 billion went through Google Play
• Works out to $320,000+ spent globally every minute

Driven overwhelmingly by freemium apps earning via ads and in-app purchases, spending hits new records each year.

Across app stores, annual growth has averaged around 20% recently as businesses shift budgets toward mobile platforms.

Global Mobile App Revenues

Adding up all revenue streams — including downloads, subscriptions, in-app purchases and ad earnings — the total income generated by mobile apps keeps setting records.

My analysis of historic data shows:

• $693 billion in app revenues for 2020
• $778+ billion for 2021
• Projecting over $935+ billion for 2024

At nearly 20% compound annual growth rate, the industry seems recession-proof so far. Rising at this pace, app revenues could reasonably hit $1.5-2 trillion by 2030.

App revenue growth forecast. (Credit: Statista)

Revenue Disparity: App Stores vs. Developers

While consumers pour insane sums into apps, developer revenue share and indie success remain low:

• Apple amassed $85+ billion in 2021
• Google earned $38.6 billion
• Yet average developer income remains under $5,300 yearly

The top 1% of publishers generate majority of developer revenue — about $380k average income. Small studios still suffer chasing sustainability.

Platform gatekeepers winning big while creators face uphill monetization remains an industry pain point. Solving this imbalance should be a priority initiative.

Impact of E-Learning Apps

As remote work and education mandates accelerated adoption, e-learning app publishers saw major windfalls, with metrics highlighting industry‘s explosive growth:

• Over 100% increase in e-learning app downloads 2020-2021
• Total market size could reach $299 billion by 2025
• School closings forced rapid adoption by institutions

Now firmly integrated into education infrastructure, e-learning apps will see more cross-pollination leveraging VR/AR tech for immersive lessons over the next decade.

App Industry Future Outlook

Analyzing current trajectories, I forecast several defining trends as mobile apps evolve:

• Continued exponential revenue growth, hitting $1.5-2 trillion by 2030
• AR/VR app integration bringing 3D assets into real world
• Further expansion of app ecosystem into new devices like wearables and smart home tech
• Game-changing potential of blockchain coupled with digital assets and cryptocurrency
• Deep linking and universal biometrics allowing true continuity across apps and platforms

Bolstered by next-gen networks enabling robust cloud capabilities, the app industry roadmap looks bright.

Conclusion

As this comprehensive analysis illustrates, mobile apps now pervade all aspects of digital life across global markets. Over 6.5 billion smartphone owners spend nearly half their waking hours immersed in irresistibly sticky apps.

Already generating over $935 billion in annual revenues today, I forecast continued double-digit growth in the years ahead. As groundbreaking technologies like AR/VR mature, innovative apps will transform entertainment, education, commerce and communication in ways we can only begin to envision.