The Travel market contains apps that make it easier to book trips and accommodations. For example, the Booking.com and Airbnb apps allow users to reserve hotels or apartments through a few simple clicks and provide numerous recommendations, photos, and customer reviews. Major airlines such as United Airlines also have their own apps that streamline the process of booking flights and offer points and rewards for travel.
We consider three different sources of revenue:
Revenue from in-app purchases (IAP) that comes from the purchase of features, upgrades, and subscriptions within an app
Paid app revenue from the one-time purchase of an app
Advertising revenue obtained from showing ads within an app
Our statistics include the revenue earned by developers and also the revenue earned by stores through commissions.
Apps that can be downloaded from major app stores such as Apple, Inc.'s App Store and the Google Play store, or in the case of China, from stores such as Huawei AppGallery and Tencent Appstore.
Apps that are run on iPhones and Android phones.
Apps exclusively offered by Microsoft Store and Amazon Appstore for Android.
Custom-made apps not available from any official app store.
B2B/C2C app sales of any kind.
Subscription revenues outside of in-app purchases (for example, Netflix and Spotify use their own payment systems outside of their apps).
Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.
The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.
Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward apps.
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year in case market dynamics change.