New research by Vision Mobile shows that the “app economy” in Europe is still showing steady growth, and is estimated to reach $16.5 billion this year. However, its share of the global market has fallen to 19%, from 24% two years before.
Vision Mobile projects that app revenue in European nations will rise to $16.5 billion this year, compared to $13 billion in 2012, equivalent to 12% annual growth rate. Currently, the app economy’s global growth of 27% is double that of the European Union.
- The EU Accounts for 19% of Global App Revenues in 2014
- $16.5 billion (or 19% of that) is EU, with the rest of the world at $69.8 billion (81%).
The app economy in Europe is growing steadily, and some companies are even finding it hard to keep up with demand. However, markets in Asia are simply growing a lot faster. According to the report, mobile tech companies need to focus mainly on Asian markets, as Asia currently accounts for three times as many smart phone sales as Europe (as of last year), and the majority of its sales to new users. India and China are both expected to add over 400 million new smart phone users this year. Mobile tech companies simply cannot ignore the Asian market if they want to succeed.
Despite this news, the EU app economy does still continue to grow, despite a shortage of developers. The report said, “Demand outstrips supply with every self respecting CIO or brand manager commissioning their own apps.”
Some more findings include:
App contracts are getting bigger. According to the report, app developers in the EU are focusing currently on contract development compared to developers elsewhere. Approximately 31% generate revenues through contract development.
Business and Enterprise. The business and enterprise apps market is expected to grow to $58 billion by 2016. This is mainly due to demand for contracted apps from EU verticals. Businesses are expected to play a large role in the growth of the app economy in the region, but Vision Mobile still predicts the market to reach $58 billion globally by 2016.
Developer Job Growth. A total of a million jobs are contributed by the app economy in the European union. It is estimated that there will be 670,000 directly related to the app economy in 2014 – a 26% increase compared to last year.
Start ups. Start ups are harder in the EU, due to bureaucratic and labor barriers. The failure rate of start ups is very high in this region, and some entrepreneurs are even moving to other areas, such as the San Francisco Bay area, to start up or expand.
No matter which way you look at it, mobile tech companies should definitely be focusing on Asian regions for smart phone growth, while keeping their eye on the steadily but slowly growing app economy in EU. Interested in building a DIY app for your business? Bizness Apps can help.
