The App Association report reveals apps contributed €210 billion to the EU economy in 2021
A new report commissioned by ACT | The App Association and prepared by Deloitte Finance reveals that the app economy contributed €210 billion in direct and indirect revenues in the European Union (EU) in 2021. The report entitled “The App Economy in Europe – A review of the mobile app market and its contribution to the European Economy” also found that the app industry accounted for an impressive 0.7 percent of the EU’s GDP in 2021, generating an estimated 1.4 million jobs.
The research also included a view on the impact of mobile apps in the United Kingdom (UK), which revealed a €86.5 billion direct and indirect revenue contribution to its economy. In total, the UK app sector generated an estimated 400,000 jobs.
The industry’s success is, in part, being driven by a continued growth in smartphone and app usage, the new data found, with EU consumers spending 21 percent more on apps in 2021 than in 2020.
“Apps have become an integral part of our life”, explains Mike Sax, the App Association’s founder and chairperson. “The COVID-19 pandemic accelerated the digital transformation for many sectors, including for healthcare and shopping apps, and raised significant awareness of their importance. Our research underscores their daily value to the many individuals, businesses, and governmental organisations that they serve, but also their rapidly growing economic importance.”
With mobile phones expected to reach 4.6 billion devices in use globally by 2024, app downloads—including business apps, food and drink apps, medical apps, and health and fitness apps—will continue to increase significantly over the next few years, the study revealed.
The increased use of apps is further enabled by a growing number of mobile-only users, with 21 percent of the EU population or around 74.8 million people making use of the device as their only access to the web. In the UK, the mobile-only population currently represents 14 percent of the population or 7.6 million users.
“Apps today provide us with an increasing set of services that make our lives easier, safer, more connected, and more efficient. We truly believe that we, as smaller app providers, can make a big difference to people’s lives, and this report underscores that. It’s encouraging and we are convinced that it will motivate more innovation in the sector”, stated Sveatoslav Vizitiu from Wello, an award-winning child nutrition app provider based in Romania and an active member of The App Association.
Apps have also permeated business models in various ways, the report found, with many firms now integrating these into the way they provide services to their clients. The future is likely to see businesses offer increasingly new types of services as apps leverage new technologies such as virtual reality (VR), the internet of things (IoT), and artificial intelligence (AI).
- Optimum Finance Continues Growth Trajectory with New Funding Capability Read more
- EXCLUSIVE: “Neobanking Around the World” – Alex Weber, N26 in ‘The Paytech Magazine’ Read more
- VizyPay’s Cash Discount Program Wins Bronze in 12th Annual Best in Biz Awards Read more
- BNY Mellon’s Isabel Schmidt on Payments Modernisation and the Digital Economy in 2022 Read more
- Virtual cards and updated Spending Insights join Starling Bank’s enhanced suite of money management tools Read more