Killer app: The industry has recorded strong expansion, but growth is expected to slow

The Smartphone App Developers industry comprises companies that write, design and test mobile applications software. Since the release of the first iPhone in 2008, and with it the launch of Apple’s App Store, the App Development industry has gone from practically non-existent to an established segment of software development. The rapid penetration of smartphones equipped with internet connectivity and powerful processors has facilitated industry expansion. In the space of a decade, apps have integrated themselves into a variety of functions, becoming an indispensable feature of modern life. Industry revenue is expected to grow at a compound annual rate of 18% over the five years through 2018-19 to £8.7 billion...read more.

Industry Statistics & Market Size
Revenue
£8.7bn
Annual Growth 14-19
18.0%
Forecast Growth 19-24
Profit
Employment
52,883
Businesses
10,230
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The industry has expanded to become an established segment of software development
  • Apps have become an increasingly important platform for business purposes in recent years
  • App-enabled wearable devices are expected to become increasingly popular and widespread
  • Industry Report - Industry Locations Chapter

    LondonLondon is home to approximately 31% of industry establishments. Skilled workers and influential companies tend to gravitate towards the capital in search of one another. Many of the industry’s downstream clients are also located in the capital, allowing developers to meet with clients personally. The proportion of establishments in London is expected to continue to increase as the government promotes the development of the East London Tech City, Britain’s answer to Silicon Valley.The South EastThe South East is estimated to account for 24% of industry establishments. Many operators are location in the outer regions surrounding London, where rents are lower. The...purchase to read more.

    Additional Insights for the App Development Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the App Development Industry are

  • Access to highly skilled workforce
  • Product is sold at high profile outlets
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Business software investment and Number of mobile connections in the App Development industry impact industry performance..

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    What's in this report

    What is the App Development Industry?

    Operators in this industry write, design and test software for smartphones, tablets and other mobile devices. This industry only records revenue arising from development activities and does not include the value of transactions carried out via the app.

    Industry Products
  • Games
  • Business
  • Lifestyle
  • Education
  • Entertainment
  • Travel
  • Industry Activities
  • Smartphone app creation and submission
  • Smartphone app development
  • Smartphone script and code writing for external clients
  • Smartphone design and user-interface consultation for external clients
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business software investment
  • Number of mobile connections
  • Total online expenditure
  • IT and telecommunications adoption

  • Current Performance
  • Look smart
  • Practical purposes
  • Upgrades available
  • Regulatory barriers
  • Chart: Revenue Growth

  • Industry Outlook
  • Expansion constraints
  • New app technology
  • Operating systems
  • Table: App Development Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - App Development Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Software Publishing
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Internet Service Providers
  • Market Research & Public Opinion Polling
  • Software Publishing

  • Products & Services
  • Games
  • Business
  • Lifestyle
  • Education
  • Other
  • Travel
  • Entertainment
  • Chart: App Development Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • iOS
  • Android
  • Windows Phone
  • Blackberry OS
  • Chart: Major Market Segmentation for the App Development Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther
  • Chart: Cost Structure Benchmarking – Sector vs App Development

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the App Development Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the App Development Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the App Development Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    App
  • Programs for mobile devices, such as smartphones and tablets.
  • Augmented Reality
  • The integration of digital information with a user's environment in real time. Augmented reality uses the existing environment and overlays new information (including 3D models) on top of it.
  • Smartphone
  • A mobile phone device that offers significantly more advanced connectivity and computing functions than traditional mobile phones.
  • What Our Customers Say

    Why buy this report?

    The App Development market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on App Development:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The App Development market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on App Development, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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