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App consumer spend to grow 92% from 2017-2022: Report

Global consumer spend in app stores is poised to grow to US$156.5B by 2022, up 92 per cent from 2017, according to a new report released today from App Annie. The App Annie Forecast 2017-2022 sheds light on key macro and micro trends set to shape the app economy for the next few years.

As the app economy progresses to its second decade of existence, growth is set to remain strong, with global first time download numbers set to grow by 45 per cent from 2017 to 2022, to hit 258.2 billion. And as smartphone penetration continues to grow in emerging markets, the install base of smartphones and tablets is also set to grow from 3.9 billion at the end of 2017, to 6.1 billion in 2022.

Countries driving growth of global app economy by spend include China, US, Japan, South Korea and Germany. The top five global markets in 2022 by downloads will be China, India, US, Brazil and Russia. Average spend per consumer reached $20.94 in 2017 and is forecast to rise to $25.65 in 2022, driven by a combination of consumers in mature markets growing quickly, and exponentially increasing their spend. Install base of mobile devices expanding 56 per cent to reach 6.1 billion, bringing two billion more mobile devices into the global install base, primarily from emerging markets with lower purchasing power.

The report introduces an updated app maturity model to highlight the three phases of app market maturity: Experimentation, Expansion and Maturation.
o Experimentation: Consists of early emerging markets including India, Brazil, Indonesia, Thailand
o Expansion: Taiwan, Singapore and most Western European countries
o Maturation: Countries such as Japan, US, S. Korea, Tier 1 & 2 cities of China

Asian giants continue to dominate as China is and will continue to be the largest market for apps in both downloads and app store spend. Consumer spend will more than double from 2017 to reach $62.4B. Annual per user spend in Japan will exceed $140 by 2022 – this is nearly 6x the global average and by far the highest in the world. India became the 2nd largest market in downloads in 2017 and is expected to retain the 2nd spot through 2022 with downloads more than tripling to 37.2B.