Global users’ spending on mobile apps will reach $ 156 billion by 2023. This figure represents a growth of 120% since 2018 and a compound annual growth rate (CAGR) of 16.8% over the next five years.
Five-year market forecasts come from Sensor Tower’s projections based on data from its Store Intelligence. Sensor Tower offers optimization, monitoring and analysis solutions for the marketplaces of the app economy. With enterprise services and small companies of intelligence stores, intelligence apps and intelligence.
The results are part of the 2019-2023 Market Forecast App released by Sensor Tower. A sample of the full report is available at this link.
App economy: boom continues and gap reduces
In addition to macro revenue forecasts, Sensor Tower offers a projection of users’ expenses on the App Store and Google Play individually. These will be more than doubled between today and 2023.
The company’s projections speak of global revenues on the Apple platform that are expected to reach US$96 billion over the next five years. This represents a 104% increase compared to the total of 47 billion in 2018, with a CAGR of 15.6%.
For Google Play, in comparison, Sensor Tower expects it to reach $60 billion in users’ spending worldwide. With an increase of 140% compared to 2018 and with a CAGR of 19%. According to this forecast, Google Play will reduce its revenue gap with the App Store. However, Apple’s platform will continue to handle almost 62% of all revenue generated by the two stores.
The different areas of the world
Sensor Tower expects Latin America and Africa to show the largest revenue growth over the next five years, on both platforms. Global revenue on the App Store will continue to be driven by China, the United States and Japan.
Meanwhile, the countries with Google Play’s largest revenue in 2023 will be the United States, South Korea and Japan. The United States ranked second behind Japan for user spending in 2018. While South Korea ranked third. The signs are significant growth in both countries compared to Japan over the next five years.
Sensor Tower expects Latin America to reach $2.4 billion in user expense on the App Store by 2023. With an increase of 239% compared to the 710 million dollars estimated by the analysis company were spent last year. Growth in this region on Google Play will be even more pronounced, reaching 2.8 billion dollars. A 408% increase compared to 550 million dollars in 2018.
Sensor Tower’s model expects users’ spending on the App Store in African countries to grow by 296% compared to 2018 to $420 million. While on Google Play it expects an expense of 430 million dollars in the region, with a growth of 406%.