Mobile apps have become synonyms for business development and marketing. Every small company to a large corporation invests in mobile app development to create innovative solutions for their customers. India is one of the biggest app developers in the world, with the largest share of the IT outsourcing market. Learning more about how users take advantage of mobile apps, overall installations, best categories, and other parameters will help determine the next step for businesses.
Mobile App Revenue Worldwide
Mobile apps are one of the fastest-growing markets in the world with unprecedented rates. Businesses around the world are leveraging this opportunity by launching their own apps. Companies utilize these apps to market, offer customer services, and expand their reach. The total app revenue is expected to show an annual growth rate of 8.58%, resulting in US$755.50bn by 2027.
Currently, the gaming app segment is one of the most successful categories of mobile apps. Gaming apps have become mainstream with the evolution of better devices and smartphones. Gaming apps are expected to generate $255.50 billion in 2023, and it’s expected to reach US$376.70bn by 2027.
Social networking apps like Facebook, Instagram, and Twitter are the second biggest segment. Facebook is one of the biggest social media platforms, with over 2.9 billion monthly active users. Social networking apps are expected to make $144.40 billion in 2023.
Indian Mobile App Development Growth in 2023
India is spearheading the global app development market with rapid ascension. One of the biggest reasons behind it is the growing number of smartphone users. According to a report by Statista, the total number of smartphone users with network subscriptions is more than 6.8 billion worldwide. With a large number of mobile users, companies can capitalize on the vacuum of certain segments by creating their own mobile apps.
Currently, the Indian app market is heading towards a massive app revenue which is expected to reach US$3.148 million in 2023. The rapid climb will continue with an annual growth rate of 11.28% resulting in a projected market volume of US$4,828.00m by 2027.
According to a report by 42matters, a total of 3% of global app publishers are from India. The total number of apps is over 156,857 apps from Indian publishers on Google Play out of the 3,253,794 apps. The Indian app development quality is one of the highest in the world, with an average rating of 3.96 stars. The global app ratings are 3.76 stars.
The global app development market changes the development trend based on demand. To understand the market for app development, we need to learn more about popular app categories in the market.
As per the above graph, the most popular app category on the google play store is games, education, business, tools, and entertainment. Gaming apps were ahead by 13.8% by the end of 2022. Educational apps like online learning, classes, and others are in second place with 10.47%.
Games are also in the first spot for the Apple App Store, with 12.68% of total downloads. The second place is for business apps, with 10.35% of the total. The App Store and play store have totally different demographics and audiences. This is why the stark difference in popular downloads. This will help us understand the development direction of the market. The most popular and downloaded categories are the ones most companies choose to go with.
Free and Paid Apps
One of the most important factors of every app development is providing the app for free or paid version. Most apps are free, and only a small parentage of apps require payment. Here is the difference between the Apple app store and Google Play store app distribution based on paid or free apps.
Apple Free and Paid Apps
According to the latest data, as of March 2023, 94.5% of apps on the Apple App Store are free. Only 5.5% are paid, which is almost half of June 2019, when paid apps were at 10%. The paid app percentage is slowly shrinking, and free apps are taking place.
Google Free and Paid Apps
Google Play store also has a small number of paid apps at 3%. A total of 97% of apps are free on the play store. The shrinkage of paid apps is slower than the app store. In June 2019, 4.4% of apps were paid, indicating that the google play store is slowly transitioning from paid to free apps.
Mobile App Revenue Generation by Type
There is more than one way to generate revenue from the app. One of the easiest ways is to create a paid application. This is where users pay an upfront fee to download the app. Next is an in-app purchase, which refers to a certain item or access inside the app where users need to pay to gain entry or use the feature. The last and most used revenue generation is advertising. Businesses use the app for marketing or earning extra by advertising other brands on the home page or other places.
As per the graph above, the total revenue generated by paid apps is small. In-app purchases are around 40% or less, and advertising is the best revenue generation. The total revenue gene is seeing a sharp incline in 2023 by generating $475.95 billion in 2022 and is expected to reach $543.50 billion in 2023.
Revenue Share by Store
To understand where both Android and iOS app development stand, we need to compare the revenue from both stores. In 2023, Apple took away 62.7% of total revenue, while Google has a moderate 37.3% of the amount. It shows apple’s dominance over the market in app development. Google is steadily growing and might overtake Apple one day. In 2017, google had 35.8% of total revenue, while Apple had 64.2%. Google grew almost 2%, and apple lost those 2% of its market share.
The Cost of App Development in India and Why Outsource to India
Cost of App Development in India
The overall mobile app development cost varies based on the requirements, market, features, and other factors. However, the app development cost in India is slightly lower than in other countries. Let’s break down every cost based on different elements.
The first stage of any development is research. The app development company uses the information provided by the client and does though research on the targeted audience and other factors. Based on the research and competitor analysis, they will suggest ideas for apps, features, and functionalities. The cost of the research stage can vary as per client requirements and the amount of time needed. Overall cost less than $1,000.
User interface and user experience are one of the most significant stages. Developers will create mockup designs and wireframes of the designs. It’s important to create an attractive but functional design. We need to provide the simplest designs with easy navigation which does not confuse the users. The cost of this stage ranges from $10,000 to $50,000.
The development stage consists of various tech stacks, programming languages, frameworks, and more. The developers will build the app based on the design and add the required features. App development takes time and is a vital part of the process. The development stage costs range from $50,000 to $500,000 based on size, features, and other aspects of development.
Quality Assurance and Testing
The development process needs refinement. Every stage of development needs quality assurance and testing. This will keep the bugs, errors, and other malfunctions away. The developers will test the app with automation or manually to find the smallest issues. Based on the requirements, these stages cost around $10,000 to $50,000.
The launch stage is important as developers need to check every aspect of the app before releasing it to the public. Developers set up servers and security and run final checks on bugs to ensure smooth deployment. The first few hours of launching are important as we can gather information through feedback and change accordingly. This stage can cost around $5,000 to $25,000.
Every app need maintenance and support. Companies need to send updates to fix issues or improve performance. Based on the app, the amount of support can be a little too regular occurrence. That’s why the overall cost of maintenance and support is around $10,000 to $100,000.
Comparison of App Development Costs in India with Other Countries
One of the biggest advantages of outsourcing app development to India is the cost of development. Compared to other countries, Indian developers charge less to complete the same task. These cost differences are one reason why many businesses outsource their app development projects to India. Let’s compare the hourly rate of app development.
|USA||$150 – $200|
|Europe||$100 - $150|
|Australia||$80 - $130|
|India||$30 - $60|
Factors Affecting the Cost of App Development in India
App development is a booming industry in India, with many companies and freelancers offering their services to clients across the world. However, the cost of app development can vary widely depending on several factors.
One of the most important factors determining the cost of app development is the app’s complexity. Complexity means the number and type of features, functionalities, integrations, and customizations that the app requires. For example, a simple app displaying information or performing a basic task will cost less than a complex app involving e-commerce, social media, geolocation, chat, video streaming, etc. The more complex the app, the more time and resources it will take to develop, test, and deploy.
A feature can be a login system, a payment gateway, a push notification system, a rating and review system, etc. The more features the app has, the more expensive it will be to develop. However, not all features are equally important or necessary for every app. Therefore, it is advisable to prioritize the features based on their value and relevance to your target audience and business goals.
Each platform has its advantages and disadvantages, as well as its development tools and requirements. Developing an app for iOS is more expensive than developing an app for Android because iOS has stricter guidelines and higher quality standards. Developing an app for the web or hybrid platforms can be cheaper and faster than developing an app for native platforms because they use common technologies and frameworks that can run on multiple devices. However, web or hybrid apps may have lower performance and user experience than native apps.
A good design can make an app more attractive, user-friendly, and engaging. A bad design can make an app look unprofessional, confusing, and frustrating. The cost of design depends on the level of creativity, originality, and quality that you want for your app. You can choose to use ready-made templates or themes that are available online for free or at a low cost. Alternatively, you can hire a professional designer or agency to create a custom design for your app that matches your brand identity and vision.
Location of Development Team
The location refers to the country or region where the developers are based. The cost of living and labor rates vary significantly across different locations. For example, hiring developers from India can be much cheaper than hiring developers from the US or Europe. However, there are also other factors to consider when choosing a location for your development team, such as communication skills, cultural differences, time zones, quality standards, etc. Therefore, it is important to do your research and compare different options before choosing the right development company.
Examples of App Development Costs for Different Types of Apps
- simple app with basic features and design – $5k-$10k
- medium app with moderate features and design – $10k-$25k
- complex app with advanced features and design – $25k-$50k
These are just rough estimates based on average market rates. The actual cost may vary depending on various factors, such as complexity, design, features and more.
5 Reasons to Outsource Mobile App Development to India
Mobile app development is a booming industry that requires a lot of skills, resources, and time. Many businesses struggle to keep up with the demand and quality of mobile apps, especially in the competitive global market. That’s why outsourcing mobile app development to India can be a smart and cost-effective solution for your business. Here are five reasons why you should consider outsourcing your mobile app development to India.
Access to a Large Pool of Talented and Experienced Developers
India has one of the world’s largest and fastest-growing IT sectors, with millions of skilled and qualified developers who can handle any type of mobile app project. Whether you need an iOS, Android, hybrid, or cross-platform app, you can find a developer who can meet your requirements and expectations.
Lower Cost and Higher Quality
Outsourcing mobile app development to India can help you save up to 60% of the development cost compared to hiring developers in-house or in other countries. This is because of India’s lower labor cost, favorable exchange rate, and tax benefits. Moreover, you can get high-quality mobile apps that adhere to international standards and best practices, as Indian developers are well-versed in the latest technologies and trends.
Faster Time to Market and Scalability
App development in India can help you speed up the development process and launch your app faster than your competitors. This is because Indian developers work in different time zones and can deliver your project within the agreed deadline. You can also scale up or down your team size according to your changing needs and budget without compromising on quality or efficiency.
Better Communication and Collaboration
mobile app development in India does not mean that you lose control or visibility over your project. On the contrary, you can communicate and collaborate with your Indian developers easily and effectively through various channels such as email, phone, chat, video conferencing, and project management tools. You can also get regular updates and feedback on your project progress and status.
More Innovation and Creativity
Outsourcing mobile app development to India can help you tap into the innovation and creativity of Indian developers who can bring fresh ideas and perspectives to your project. They can also suggest new features and functionalities that can enhance your app’s user experience and value proposition.
Outsourcing mobile app development to India can be a win-win situation for your business, as you can get high-quality mobile apps at a lower cost and faster time to market. You can also leverage the expertise, experience, and innovation of Indian developers who can deliver your project according to your vision and goals.
A total of 255 billion apps were downloaded in 2022. That’s the groundbreaking amount of app downloads and revenue generation every year. With the growing demand for app development, the world has turned to India for its solution. India is one of the fastest-growing IT nations, with thousands of skilled and experienced developers.
This article has provided a detailed analysis of app development, revenue, and more. We have also mentioned why India is the best place to outsource any app development.
Image Credit: Statista