Global market intelligence firm Newzoo has today announced the release of its first Global Mobile Market Report, a unique publication on the global mobile ecosystem, including global app revenues and forecasts, device brand market share, smartphone penetration, and consumer profiling.
According to the report, global app revenues will reach $44.8 billion in 2016 and grow to $80.6 billion by 2020. The share of app revenues generated by games is expected to decrease from 82% to 72% in the same period. The report zooms in on the three billion smartphone and tablet devices that are actively used across the world, showing that Apple is the global leader with a market share of 34.8%, followed by Samsung with 23.2%.
Chinese brands account for seven of the top ten global brands, testament to sheer size of the Chinese market, which accounts for 30.2% of the actively used mobile devices worldwide. The report also looks at the market from a consumer standpoint, reporting how the 2.3 billion smartphone users are spread across the globe and how demographic profiles and app performance metrics can differ per region and distribution channel.
Today’s report publication also marks the official launch of Newzoo Mobile, the company’s division that aims to be the global leader in mobile intelligence across all markets. Its leading global position in games and esports intelligence is cemented in its other two divisions: Newzoo Games and Newzoo Esports.
Peter Warman, CEO Newzoo, comments on the launch: “Our Global Games and Esports Market Reports have become the authoritative sources for in-depth market figures and projections. For Newzoo as a company, the next step was obvious: to move into mobile with a broader focus than games. This report marks the official launch of Newzoo Mobile and its Mobile Intelligence Suite. Our portfolio is the result of almost two years of preparation, partnering, data sourcing, and modeling. The resulting intelligence focuses on active devices, users, and the app (store) economy. From a geographic perspective, our Chinese partner and strategic investor TalkingData plays a key role in enabling us to paint a truly global picture, previously unavailable in the market.”
APAC & CHINA LEAD GLOBAL APP REVENUE GROWTH
The Asia-Pacific app market will account for 56% of global app revenues this year, or $25.7 billion, and will grow to $42.9 billion by 2020, a CAGR of 17.4%. This is almost identical to the global average, but masks important differences between individual countries and sub-regions, with much slower growth in mature markets such as Japan and Korea and faster growth in China and Southeast Asia. China overtook the US in 2015 in total app revenues and will continue to pull away, benefitting from its sheer size and untapped potential. The share of revenues claimed by games will remain relatively high in China, as the China mobile gaming market is expected to continue to show strong growth over the next couple of years.
US app revenues will reach $9.4 billion this year and grow to $14.2 billion by 2020. The share of revenues taken by games will lower significantly from 72% to 57%, partially caused by slowing growth in US gaming revenues. The fastest growing non-gaming categories across all regions include Finance, (Video) Entertainment, Lifestyle, and Music.
UNITS SHIPPED VS. UNITS USED: TABLETS ARE NOT DYING
Almost a decade after the first iPhone was launched, growth of mobile smart devices sold in mature markets is slowing markedly. The replacement cycle, rather than increase in penetration, is driving the number of new units sold. In the high growth phase, the focus is often on the hardware manufacturing or supply angle, expressed as “units shipped”. In the current phase of maturity, it is crucial to understand what people do with their devices and which devices are actively used at any given moment and in a certain territory. This services angle is all about active users and actively used devices. These are the metrics that matter most for software developers and advertisers.
Newzoo’s analysis of July US data shows that more than 79% of actively used tablets in the US were models that were launched more than 2.5 years ago. For iPhones, the opposite is true: 78% of actively used iPhones are models that have been in existence for less than 2.5 years. In fact, Apple’s iPhone 6 (Plus) and 6s (Plus) together account for more than 50% of all actively used smartphones in the US. Evidently, a longer lifetime of iPads lowers demand for new units, but this has no impact on active use of iPads, including spending on app-based services. Recent reporting on the rapid decline of tablets are based purely on “units shipped” and not on actual use. Illustrative is the fact that July data on Australia, the strongest iOS market in the world in terms of market share, shows that 27% of active iOS devices were iPads.
APPLE HAS THE HIGHEST DEVICE MARKET SHARE WITH 35% GLOBALLY
Looking at all of the active smartphones and tablets worldwide in July, Apple has the highest market share of all mobile brands, accounting for 34.8% of all smart mobile devices. Its strong performance in China in terms of active use plays a crucial role in its leading position. Samsung is in a strong number two position with 23.3%, followed by the three leading Chinese manufacturers: Huawei, Xiaomi, and Lenovo. The number of Chinese firms in the top ten is testament to sheer size of the Chinese mobile market: 30.2% of the world’s active smartphones and tablets.
On a regional level, Apple is the smart device brand with the most active users in North America, Middle East and Africa, as well as Asia-Pacific, while Samsung has a clear lead in Latin America and Europe. In fact, Samsung has an impressive 48.4% market share in Latin America, with Apple and Motorola trailing behind with 19.9% and 18.1%, respectively.
AMAZON APP STORE USER IS BIGGEST MEDIA SPENDER
This year, 2.3 billion people across the globe, or 31% of the world’s population, will use a smartphone. The data is derived from Newzoo’s device and usage models that comprise data on over 150 individual countries. Using demographic and audience profiling data, the report shows that Amazon users are the most likely to have a full-time job and to be big spenders on digital media, including games and subscriptions like Spotify. Amazon also scores well in terms of spending, illustrated by an average revenue per paying user (ARPPU) of $23.40, higher than the average across all Android smartphones and tablets.
More about Newzoo Mobile’s services can be found on www.newzoo.com/mobile