Since COVID 19 pandemic has struck the world, each industry has shaken to the core. Trying to not fall over this tripping ground! One such is the mobile app development sector. It is one of the most popular investment spaces of this decade and has boomed tremendously.
In 2018, the Global mobile app market was counted with $106.27 billion worth value, and it is expected to grow at 18.4% CAGR between 2019-2026, resulting in $407.31 billion worth.
However, COVID 19 pandemic has triggered several uncertainties and risks for the investment in this space. However, some aspects can only be fictitious and merely myths.
If you are worried about the change in this space, and ‘thought of investment’ is haunting you. Before reaching any conclusion, you must understand how the mobile app development market has been impacted by the Coronavirus pandemic.
Impact of CoronaVirus Pandemic On Mobile App Development Market
The impact of the COVID 19 pandemic over mobile app industry can be gauged in terms of needs and usage. If I see the usage of internet and mobile apps during this time, there is a huge uplift in the usage among people.
World-wide lockdown has forced millions of people to work from home, and time spent over gaming apps, video streaming apps, and business applications have risen. In short, internet usage has risen up to 50%.
As per Forbes report, internet usage has increased upto 70% during the coronavirus pandemic. Following representation is a clear depiction of an upsurge in internet usage during the onset of Coronavirus.
Though, if I talk about the outburst of mobile app usage, then it would be significant to say that all applications have faced dissimilar outcomes. While some applications are being flooded with billions of users, some service providing applications are struggling to maintain their position. Let’s take a closer look at different application genres.
- Video streaming apps are experiencing 12% growth during COVID 19.
- E-commerce apps are expected to see 5% growth by the end of 2020. While during the onset of Coronavirus, this market fell instantly.
- Daily downloads of Zoom conferencing apps have risen 30X during this period. Besides, other conferencing services have experienced 10X rise in usage.
- Ridesharing app market is expected to drop up to 50%, while people are avoiding transportation. It is expected to fall from $117.34 billion to 75.39 billion by 2021.
- Delivery app revenue has increased in many countries, and the industry is seeking 50% upsurge in grocery delivery, food delivery, and more.
- Mobile gaming spending has increased by 21.2% and reached $36.6 billion during the first half of 2020.
Overall Global mobile app revenue has taken a long leap of $50 Billion in the first half of 2020.
In short, the mobile application development market is still a fruitful investment space. If you are thinking about developing a mobile app to take a plunge into the internet business world, you need to hire mobile app developers well-versed in infusing the latest technologies for enhancing user experience.
“Embarking on a journey to serve users futuristic app experience beyond their expectation with destructive security can open the floodgate of revenue generation for your business in the post Covid era.”
Though it is still hard to understand the importance of mobile application development, especially for small businesses and startups. Underestimating the worth of app development investment during the pandemic can take your business 10 years behind.
Let’s understand why mobile apps are mobile apps significant in the current marketplace.
Importance of Mobile App In Current Arena
Can you reflect how much time you spend using your mobile? And what are the types of applications you use every day?
Millennial spend an average of 2.3 hours on mobile every day, and social media contributes to major. Though, coronavirus lockdown has triggered 2X more engagement over smartphones.
While people are avoiding going outside their houses in this crisis, they are frequently embracing online services. Moreover, social media apps have emerged as the best tools of social interaction, business conversations, conference calls.
Furthermore, streaming apps, gaming apps and dating apps are other major attractions among folks for delightful engagement. In short, there is no other platform that can offer this much engagement for any business niche.
Moreover, mobile apps are incredibly essential tools in users’ hands for communication, procuring services, entertainment, and more. Needless to say that mobile applications are essential in the current arena while everyone is staying within their house, and an app is a handy tool for everything they want to do.
However, for small businesses investing in a mobile app is still an aspect of distrust and dilemma in terms of revenue generation. If you are thinking about developing a mobile app for your business, then you must understand it can help in revenue generation.
How will a mobile app boost business revenue post COVID 19?
Currently, mobile application is a major revenue generation tool that allows businesses to reach a huge audience available all across the world. To understand the benefit of investing in a mobile application, you need to understand how it can help revenue generation in current market conditions.
Here are some ways it allows businesses to boost revenue generation.
- Increases customer outreach: Since anyone can access your application from anywhere, it removes the location and reachability constraints for your business. It increases customer inflow and helps your business boost sales.
- Consolidates brand awareness: Another most essential factor that boosts revenue generation is brand awareness. It is essential for small businesses now to increase their presence in the market to boost sales. Thus, brand awareness is critical.
Therefore, embracing mobile apps can drive awareness of your service and products in the market, which will automatically result in increased revenue increase and sales.
- Create Brand Loyalty: Among consumers, loyalty and trust are the major factors that drive sales. A mobile application allows you to plunge into a stream of greater trust and loyalty where you can increase sales with various loyalty programs, and create a sense of reliance for new and existing customers.
Moreover, taking safety provisions seriously in the era of Coronavirus, you can also invite more customers to your business through the best quality service.
- Better customer service and support: After procuring any assistance and service, every customer wants the best quality assistance. Moreover, customer experience is another way to keep the existing customers hooked for future sales.
In this matter, high-quality support and service help business. These days, mobile applications are being infused with chatbots and other engagement models that answer customers’ query instantly and retain them for increased sales.
- Consumer Insights: Another factor that can help any business is customer insight, such as what consumers are liking? What services are they buying more? What type of customer experience are they liking? What information are they browsing each day?
Understanding these aspects about customers helps any business to cater customers what they exactly need. Mobile app data can help you get insights into existing customers and interests of new customers. This insight can help you implement changes and boost customer experience for revenue generation.
Moreover, the revenue generation for each organization also depends on the industry and business niche. From engagement to quality, every aspect contributes to increased sales. Thus, you must do homework around your niche to make any investment.
Besides, you must consider predictions and foreseen outcomes for upcoming days. That’s why I am outlining the expected condition of the mobile app development market in the second half of 2020.
How will mobile application development take place in the second half or 2020?
As per forbes, a huge investment will take place in mobile application development in the second half of 2020. Major investment streams will be:
- Remote learning mobile platform development
- Retail mobile platforms
- Contactless payment application
Though, I am sure that there are many more mobile app development genres that will foster in the second half of 2020 such as entertainment apps, video streaming applications (as Chinese apps are being banned by several companies), business engagement platforms, and more.
“Furthermore, the race of providing users with more futuristic experience will lead large and small both enterprises to invest in modern technologies such as Blockchain, Artificial intelligence, IoT, and more.”
In short, if you are thinking about investing in mobile app development. You will need a deft team of mobile app developers who can craft a mind-blowing solution by implementing a modern technology basis.
Overall mobile app development market was expected to grow at 12% CAGR by the end of 2020. Though Coronavirus is driving this investment 2X faster and it is expected to increase more furiously in the second half of this year.
Amidst all of these, different types of apps will gain more value and rise incredibly. Let’s explore app genres that are expected to gain more value in the post COVID Era.
What types of apps will gain value in the post COVID era?
I believe that Coronavirus has transformed human life for better, and showed that with technology, everything is possible in the contemporary world. From remote working to an increased focus on health, technology is being leveraged for better human life.
And! Mobile application is the major communication platform. Thus, it is apparent that different types of mobile applications will gain 2X more value in the post COVID 19 era.
- Healthcare Apps: 2x better patient care, decreased physical interaction, and 4X better patient-doctor communication.
- Fitness Apps: 10X more awareness, 20% increased self-care and 50X faster access to fitness-related information.
- Retail & Shopping Apps: 4X more order placement, 10X more online shopping.
- Video Conferencing apps: 30% faster communication, 2X better team collaboration.
- Gaming Apps: 10X better revenue generation, 30% increased user outreach
- Mobile Payment Gateways: 50% increased payments, 10X more need for security.
- E-Learning Apps: 20% better engagement, 3X more revenue generation, 5X more need for a user-friendly e-learning ecosystem.
These are major categories where the app value and user interaction will boost. Apart from these, other service providing apps such as delivery apps, on demand service applications, ride hailing mobile apps, video streaming, social media, and many different applications will gain more value and recognition.
There is no doubt that investing in a mobile app can boost business revenue tremendously. And, it is still effective in COVID 19 era. While both small and large enterprises are struggling to thrive in current market conditions, mobile apps are the best tool for business survival in current market conditions.
Moreover, investing in a mobile application serving people effectively with convenience can help small businesses to emerge out from the shadow and thrive in future. Businesses should embrace mobile application development to swim through the great depression expected to come post coronavirus pandemic, not just to increase revenue generation, but also opening new ways to serve their customers and outgrow.