The amount of revenue taken from apps in 2017 is expected to reach $54.4b, with games making up the majority of the amount, according to data from Newzoo. The company’s forecast shows an 18% CAGR between now and 2020, potentially resulting in $85b revenue.
While games will dominate the revenue charts over the next few years, non-game apps are expected to fight back, with a higher growth rate expected in 2020. Newzoo shows that while games will potentially take $65b of the $80b app revenue total in 2020, it will only have risen 16.3%. Non-game apps will deliver the remaining $20b revenue, the result of 29.5% growth since 2017.
Discussing the next few years, Newzoo says:
“Revenues from non-gaming services will grow dramatically, as companies are still figuring out the best way to monetize their services through apps.”
App revenue growth will be assisted by the number of smartphone users in the world going from 2.6 billion this year to 3.6 billion in 2020. While the U.S. and Europe will continue to grow, it will be at a steady rate. The most growth will come from Africa, the Middle East, and Asia Pacific.
P.S. If you haven't yet tried mobile app development with Phenom Apps, now is a great time. You can get PhenomApps, free for 21 days, just by following this link.
Powered by our own proprietary technology solutions, we provide a go-to source for tech, digital culture and cutting-edge technology content for our dedicated and influential audience around the globe.