App Revenue is Reaching New Limits
App revenue has been projected to reach $85 billion by 2020! And to boot, non-game apps have been demonstrating the most growth. The amount of revenue taken from apps this year is expected to reach $54.4 billion, with games making up the majority of the value, according to data from Newzoo.
While games will dominate the revenue charts over the next few years, non-game apps are expected to make a comeback, with a higher growth rate expected in the year 2020. Newzoo data shows that while games will potentially take $65b of the $80b app revenue total in 2020, it will only have risen 16.3%. Non-game apps will deliver the remaining $20b revenue, the result of 29.5% growth since 2017. Wow.
“Revenues from non-gaming services will grow dramatically, as companies are still figuring out the best way to monetize their services through apps,” says Newzoo.
App revenue growth will be assisted by the number of smartphone users in the world going from 2.6 billion this year to 3.6 billion in 2020. While the U.S. and Europe will continue to grow, it will be at a steady rate.