Table of Contents
Executive Summary
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- COVID-19 has a positive impact on the market as people turn to tech
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- Figure 1: Short, medium and long-term impact of COVID-19 on the mobile apps category, September 2020
- The market
- Market size and forecast
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- Figure 2: Consumer spend on App Store and Google Play Store apps and games, 2014-19 and H1 2020
- Freemium still the dominant revenue model
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- Figure 3: Market size for mobile apps, 2015-25, prepared on 7 October 2020
- Companies and brands
- Wearable technology can be a significant platform for mobile apps
- Homeworking and virtual socialising apps soar
- Fitness apps’ COVID spike likely to be sustained longer term
- TikTok fashion month aims to make it a go-to hub for young fashion obsessives
- News app Curio raises $9 million in funding for growth plans
- Niantic eyes 5G AR alliance to push mobile gaming experience
- The consumer
- Three in 10 would not download the NHS COVID-19 tracing app
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- Figure 4: Attitudes towards downloading COVID-19 contact tracing app, July 2020
- Decrease in weekly download of mobile apps
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- Figure 5: Download frequency of mobile apps amongst consumers, 2019 and 2020
- Messaging and social media are used daily
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- Figure 6: Frequency of use of mobile app categories, July 2020
- Organic search and recommendations fuel discovery
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- Figure 7: Methods of app discovery, July 2020
- Smartphones trump tablets for app installs
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- Figure 8: Number of apps installed on smartphones and tablets, July 2020
- Consumers still prefer accessing websites over dedicated apps
- Instant apps can cater to consumers’ desire for convenience
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- Figure 9: Attitudes towards mobile apps, July 2020
Issues and Insights
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- COVID-stimulated boost can provide structural shift for mobile apps market
- Instant apps can create valuable moments of convenience for consumers and aid discovery
The Market – Key Takeaways
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- 2020 sees sharp increase in consumer spend on apps and games
- Value of mobile apps market to increase by 43% in 2020
- Boost to retail and productivity apps during COVID pandemic
- Technological innovations will spur longer-term mobile apps’ growth
- Wearable technology can be a significant platform for mobile apps
Market Size and Forecast
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- COVID-19 has a positive impact on the market as people turn to tech
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- Figure 10: Short, medium and long-term impact of COVID-19 on the mobile apps category, September 2020
- 2020 sees sharp increase in consumer spend on apps and games
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- Figure 11: Consumer spend on App Store and Google Play Store apps and games, 2014-19 and H1 2020
- Freemium still the dominant revenue model
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- Figure 12: Consumer spend on App Store and Google Play Store apps and games, 2018-20
- Value of mobile apps market to increase by more than 40% in 2020
- Technological innovations can cement mobile apps’ growth
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- Figure 13: Market size for mobile apps, 2015-25, prepared on 7 October 2020
- Figure 14: Gross mobile app revenue for App Store and Google Play Store, 2015-25
- Market drivers and assumptions
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- Figure 15: Key drivers affecting Mintel’s market forecast, 2015-25, prepared on 7 October 2020
- Learnings from the last recession
- Forecast methodology
Market Drivers
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- Retail apps see spike during COVID pandemic
- Hyper-casual gaming titles still drive the market
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- Figure 16: Google Play overall rankings, by revenue, H1 2020
- Figure 17: OS App Store overall rankings, by revenue, H1 2020
- Education, streaming and gaming apps featured prominently in September
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- Figure 18: Top apps on iOS, UK, overall, 16 September 2020
- Figure 19: Top apps on Google Play, UK, overall, 16 September 2020
- Wearable technology can be a significant platform for mobile apps
- Money management apps can help hard-hit households manage finances
- Fitness apps’ COVID spike likely to be sustained longer term
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- Figure 20: Use of online health and fitness resources, June 2020
- Homeworking and virtual socialising apps soar
- Voice-first apps can increase productivity toolkit
Companies and Brands – Key Takeaways
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- NHS COVID-19 contact tracing apps launch across the UK
- TikTok aims to increase commerce opportunities
- Audio news apps raise funding as news consumption moves away from print
- Niantic eyes 5G AR alliance to push mobile gaming experience
Launch Activity and Innovation
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- Google Maps gets overhaul to give richer environment detail
- Celebrity shout-out app Cameo sees spike in lockdown as artists look to plug revenue gaps
- NHS COVID-19 contact tracing app launches on 24 September in England and Wales
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- Figure 21: Level of adoption of COVID-19 contact tracing app and impact on daily cases, September 2020
- TikTok fashion month aims to make it a go-to hub for young fashion obsessives
- News App Curio raises $9 million in funding for growth plans
- Sainsbury’s adapts Nectar rewards app to encourage healthy eating habits
- Niantic eyes 5G AR alliance to push mobile gaming experience
- “Astro Tech” apps see significant rise in investment from tech entrepreneurs
- Government approves early-years learning apps to help improve literacy
Advertising and Marketing Activity
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- Advertising spend on mobile apps hits £200 million in 2019
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- Figure 22: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, 2019
- TV still the main avenue for mobile apps advertising
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- Figure 23: Total advertising expenditure on mobile apps, by media type, 2019
- Nielsen Ad Intel coverage
The Consumer – Key Takeaways
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- Three in 10 would not download the NHS COVID-19 tracing app
- Decrease in weekly download of mobile apps
- Messaging and social media are used daily
- Smartphones trump tablets for app installs
- Household and demographic circumstance can fuel app discovery
- Consumers have a preference for accessing websites over dedicated apps
Impact of COVID-19 on Consumer Behaviour
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- Consumers turn to productivity, social and entertainment apps to fill lockdown void
- Apps can plug the gap for mindful behaviours
- Three in 10 would not download the NHS COVID-19 tracing app
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- Figure 24: Attitudes towards downloading COVID-19 contact tracing app, July 2020
App Usage on Mobile Devices
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- Decrease in weekly download of mobile apps
- Under-25s more likely to download regularly
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- Figure 25: Download frequency of mobile apps amongst consumers, 2019 and 2020
- Messaging and social media are used daily
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- Figure 26: Frequency of use of mobile app categories, July 2020
- Lapsed use of apps dominated by gaming and dating
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- Figure 27: Use of apps in the past, by category, July 2020
Number of Apps Consumers Have
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- Smartphones trump tablets for app installs
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- Figure 28: Number of apps installed on smartphones and tablets, July 2020
- Add-on or supplementary apps can appeal to high-volume users
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- Figure 29: Daily users of app categories, by number of apps installed on smartphone, July 2020
Discovery of Mobile Apps
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- Organic search and recommendations fuel discovery
- Work-related apps make the self-employed key targets
- App makers can cater to the singleton’s curiosity
- Older females value personal recommendations
- Social discovery of apps appeals to younger females
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- Figure 30: Methods of app discovery, July 2020
- Household circumstance can fuel app discovery
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- Figure 31: Repertoire of sources for app discovery, July 2020
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- Figure 32: Method of discovery of mobile apps, by repertoire of sources of app discovery, July 2020
Attitudes towards Mobile Apps
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- Consumers still prefer accessing websites over dedicated apps
- Instant apps can cater to consumers’ desire for convenience
- Enhancing impulse purchasing behaviour
- Experience is everything for the consumer
- Choice and timing can help make advertising feel less intrusive
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- Figure 33: Attitudes towards mobile apps, July 2020
- Virtual tours can be a hit with urban families
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- Figure 34: Mobile device apps – CHAID – Tree output, July 2020
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- Figure 35: Attitudes towards mobile device apps– CHAID – Table output, July 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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