Nowadays, there is a continuous rise of smart devices and technology solutions. Hence, the need for software for mobile phones has ever been more than ever in 2022. Therefore, the app economy has become the new economy that is driving the world economies.
Digital apps have become such an indelible part of our lives. Any tablet, mobile, or handheld device is supporting the use of apps.
The app economy refers to the range of economic activity surrounding mobile applications. It is a broad spectrum of revenue for businesses, entrepreneurs, and tech resources (creators of mobile products). Even the customers are encouraged to spend more money and get rewards through in-app purchases.
In another article, we talked about the gig economy and the overall impact it is exerting globally. Now, let’s have a more US-centric discussion about how the app economy is affecting the labor force. The United States as the world-leading economy is helping to progress the global market.
Benefits of the App Economy for Financial Markets
These are the advantages that the app economy has for business markets in the USA and worldwide.
- Expansion of App Economy in the US
- A win-win solution for all
- Apple App Store keeps Buzzing
- The global monetary picture looks promising
- A shift in Consumer Behavior Patterns
Now, we explore the rewards that the app economy has for the capital markets internationally.
Expansion of App Economy in the US
In terms of mobile application development in the US, iOS apps are the pivotal force driving the app economy. The reason is simple: Apple.
Its market share in the North American market remains of the lion’s share. As a result, most of the app development pertains to the iOS platform. Moreover, the COVID-19 effect has left an indelible mark on the majority of businesses to go online.
Today, eCommerce platforms are the norm in the United States and globally. Because businesses want to be able to showcase their products to users with the concept of “just a click away”.
Online purchases have become so common with free or nominal delivery charges. Consequently, there has been a significant increase in jobs in the tech sector with 300,000 new jobs since April 2019.
A win-win solution for all
Demand for programmers, app developers, QA, BA, designers, PMs, and any related roles is consistently increasing at a certain rate. The primary intent of companies is to allow supporting customers during a challenging time. They aim to provide products and services to users without any disruption in the supply.
This also allows companies to remain in business. With so many restrictions and continuous lockdowns, it’s not possible to continue keeping shops and outlets open.
However, mobile apps provide a consistent window of opportunity to operate round-the-clock while remaining safe. Customers only need to download your app and that’s it. Literally!
Apple App Store keeps Buzzing
The good news is that Apple’s app store is keeping people busy during testing times of the Coronavirus pandemic. It now supports more than 2.1 million US jobs across all 50 states, which is a 15% increase from 2019.
Thanks to the app economy, entrepreneurs, companies, businesses of any magnitude are up for business. If Covid-19 has taught us anything, it is about remaining safe and prepared. Practicing this mantra, the app economy remains one of the most prominent sources of revenue for businesses of any nature.
For example, eatery businesses have launched mobile apps for allowing customers to order food online. Telehealth portals are created for allowing patients and doctors to remain connected. Even drug stores and pharmacies are providing services for ordering medicines online.
The global monetary picture looks promising
Globally speaking, mobile programming is doing great too. By 2021, its economy is supposed to be worth $6.3 trillion which has increased from $5 trillion from last year. This is also because 2020 has witnessed a steady increase in the overall userbase for mobile apps.
AppAnnie forecasts that more than 6.3 billion people will start using mobile apps by the end of the year 2021. Time spent on apps will grow to 3.5 trillion hours in 2021, up from 1.6 trillion hours in 2016. Why is that?
It’s obvious that we are majorly confined to our homes, and we want to be able to reach out. The most common way is to stay connected and online and explore your options through mobile apps.
This also provides tremendous potential for in-app ads and mobile commerce. Because it helps them continue generating a steady revenue by accounting for the newfound consumer base in the market.
The 3.4 billion mobile app users averagely expended $379 during in-app purchases on all three forms of monetization in 2020. This translates to $0.80 per hour, per person. By 2021, this app spend is forecast to increase to $1,008 per user.
For instance, mobile users in Japan generated an average of $13.98 per user per hour. They spent more than 68 billion hours using mobile apps in 2016. Meanwhile, the U.S. and China generated $2.36 per user per hour, and $2.01, respectively.
A shift in Consumer Behavior Patterns
A lot of companies are noticing the huge reliance on mobile apps from their users. Which in turn leads to an indelible source of demand for products and services. This is greatly felt and noticed by e-commerce giants such as Amazon, Alibaba, eBay, Shopify, Walmart, etc.
People want to spend but do so in a safe way. So, mobile apps are a convenient choice now. On the other hand, look at the huge demand for tech resources. You are going to amaze at the number of jobs and tasks that are open in the job market.
It is encouraging more people to seriously think about pursuing a career in the IT industry. Even it is inspiring established app developers to work on gigs at the comfort of their homes.
As work-from-home turns into a norm, many resources from the software services sector are teleworking from homes. Till the summer of 2021, Google has directed its employees to continue remote work from home for safety measures. From September 2021, Google will test a hybrid work model with a flexible work week, 3-day work-from-office, and 2-day work-from-home.
This allows a lot of people to think about their options amid 2022. They can work on well-paying short-term assignments for various companies. So, ride the high tide of the new economy (a combination of the gig economy and app economy).
As living in uncertain times, we wait for the COVID-19 pandemic to be over or the cure to be released. While this situation persists, the app economy continually becomes a powerhouse in revenue generation for businesses and affiliated resources.
The statistics also prove that the coming few years will continue to see the app economy keep booming. It will facilitate businesses to remain open and users for continuing their daily activities without any interruption.
Are you looking to be a part of the app economy? Contact Techliance today to talk about your options at a highly affordable cost.