App Market Reaches New Heights in Q2 2022, on Course for $33 Billion Consumer Spend and 34 Billion Downloads

With two exceptionally profitable years under its belt spurred by the pandemic and related lockdowns, the app economy is set for a record breaking quarter in Q2 2022. According to data that was recently put out by DataAI, consumer spend is going to surpass $33 billion in the second quarter of 2022 alone. Consumer spends on Android apps remained consistent at $11 billion, but in spite of the fact that this is the case iOS apps have seen a healthy 4% growth in consumer spend.

Many assumed that the opening up of the economy would reduce consumer spend because of the fact that this is the sort of thing that could potentially end up making them less reliant on apps, but this data proves otherwise. With all of that having been said and now out of the way, it is important to note that gaming apps continue to maintain a strong hold over the overall sector, representing a majority of consumer spending for all apps.

An interesting aspect of this data is that iOS is far surpassing Android in terms of consumer spending on apps with all things having been considered and taken into account. The revenue from gaming apps on the App Store alone are projected to equal or potentially surpass Android app revenues from all non gaming apps. Gaming apps on iOS are expected to bring in four times as much consumer spending revenue as their Android based counterparts which indicates that the dominance of Apple in this sector doesn’t appear to be going away anytime soon.

The total consumer spending for all iOS apps, including both gaming as well as non-gaming apps, is expected to be around $22 billion in the second quarter of 2022. Android, on the other hand, is going to bring in approximately half of this amount, or $11 billion to be precise. That means that around two thirds of consumer spending in the app economy is going towards iOS apps, with Android only holding onto one third of this total revenue stream.

This coupled with Android’s lack of growth in consumer spending and iOS’s solid 4% quarter on quarter growth suggests that Android is falling behind. Google will have its work cut out for it if it wants to make up some of its lost ground, since despite its best efforts the tech giant appears to be struggling to attract the same level of consumer spending that Apple appears to enjoy.

The widening gap between Android and iOS apps gives credence to Apple’s assertion that its restricted model that doesn’t allow other companies to utilize its operating system is the best way forward. Google has failed to meet many of its growth targets and this might lead to the company falling further behind during the remainder of this year.

It will be interesting to see if any of these trends shift as the rest of 2022 plays out, but if current trends hold we might see Google with a further diminished presence in the app economy as developers look to iOS to create profitable apps. Controlling the app economy will further solidify Apple’s hold on the market.

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