The app economy has created new venues for venture capital and hedge fund investments, as well as thousands of jobs. In 2015, an estimated 627,000 jobs were created by the iOS App Store.
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| Image source: openscience.com |
The industry is currently generating around 72 billion dollars that app development has become a major draw for entrepreneurs and investors. According to the CEO of AppNation, research shows that despite a saturated market, growth rates are still accelerating exponentially. Analysts forecast that the app economy will be a 100 billion-dollar industry by 2020, if not earlier. Reports also show that 85 percent of revenues come from games, but other app categories such as those for banking, airline, retail, and ridesharing services are growing faster.
The largest app markets are in the US, Japan, and China, but research firm App Annie cites India, Indonesia, Mexico, and Argentina as fast-growing markets.
Driving the increase is app-based commerce; that is, in-app advertising, and virtual goods and paid app downloads. Newer platforms such as smart TV, virtual and augmented reality (VR / AR), and automotive would help boost sales. In the same manner, email, social networks, and mobile browsers are also expected to drive revenues.
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| Image source: socialmediatoday.com |
I am Taihwa Terry Ho and I am tech entrepreneur investing primarily in app development startups. For updates, like this Facebook page.
