Smart move: Revenue grows as more businesses outsource app development to industry players

The 2007 launch of the Apple iPhone spearheaded the smartphone revolution and provided significant opportunities for the Smartphone App Developers industry. Smartphone penetration has continued to trend upwards over the past five years, with these devices fast becoming indispensable for most of the population. As consumers use their smartphones for a variety of tasks, the popularity of apps has soared as they replace mobile web browsing and other forms of portable gaming. Industry revenue is projected to rise at an annualised 13.0% over the five years through 2017-18, to $1.7 billion. Industry revenue is expected to rise by 10.5% in the current year as more businesses outsource mobile app development to industry players...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
13.0%
Forecast Growth 18-23
Profit
Employment
5,541
Businesses
702
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increased smartphone penetration and 4G network expansion will improve access to smartphone apps
  • The relative ease of developing apps has attracted many players to the industry
  • Many industry players are likely to shift to subscription-based business models
  • Industry Report - Industry Products Chapter

    Apps developed by the Smartphone App Developers industry can be segmented into broad categories depending on the app's function.Game appsSmartphone games have become especially popular because they provide a convenient and low-cost alternative to gaming consoles, and they allow smartphone users to play games while on the go. This segment generates revenue through sales of gaming apps, in-app purchases, and advertising. Game apps have increased as a share of industry revenue over the past five years, particularly as more game developers have been adopting freemium business models, boosting sales through in-app purchases. Smartphone users that download games tend to be the most willing to purchase apps. Thi...purchase to read more.

    Additional Insights for the Smartphone App Developers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Smartphone App Developers Industry are

  • Ability to quickly adopt new technology
  • Access to highly skilled workforce
  • Company's product is user/consumer friendly
  • IBISWorld analysts also discuss how external factors such as Mobile telecommunications density and Demand from online shopping in the Smartphone App Developers industry impact industry performance..

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    What's in this report

    What is the Smartphone App Developers Industry?

    Industry businesses develop and publish apps for smartphones and mobile devices. Apps are typically sold in an app store specific to a device’s operating system.

    Industry Products
  • Game apps
  • Entertainment apps
  • Organisational apps
  • Other apps
  • Industry Activities
  • Creation of smartphone apps
  • Script and code writing for external clients
  • Design and user interface consultation for external clients
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Mobile telecommunications density
  • Demand from online shopping
  • Internet connections
  • Number of businesses

  • Current Performance
  • App introduction
  • Smartphone penetration
  • Global marketplace
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • App developments
  • Table: Smartphone App Developers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Smartphone App Developers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Financial and Insurance Services
  • Consumers

  • Key Selling Industries
  • Computer and Software Retailing
  • Data Storage Services
  • Internet Service Providers
  • Market Research and Statistical Services

  • Products & Services
  • Other apps
  • Game apps
  • Organisational apps
  • Entertainment apps
  • Chart: Smartphone App Developers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Individuals
  • Online-only businesses
  • Governments
  • Chart: Major Market Segmentation for the Smartphone App Developers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Smartphone App Developers

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Smartphone App Developers Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Smartphone App Developers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Smartphone App Developers Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Augmented Reality
  • The integration of digital information with a user's environment in real time. Augmented reality uses the existing environment and overlays new information (including 3D models) on top of it.
  • Freemium
  • A pricing strategy in which a smartphone app is available for free and advanced features and functionality are acquired as in-app purchases.
  • In-App Purchases
  • In-app purchases refer to the consumer purchases made whilst running the app. In-app purchases typically unlock additional content or features.
  • Smartphone
  • A mobile phone device that offers significantly more advanced connectivity and computing functions than traditional mobile phones.
  • What Our Customers Say

    Why buy this report?

    The Smartphone App Developers market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Smartphone App Developers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Smartphone App Developers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Smartphone App Developers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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