Based on the latest data, we expect non-gaming apps to generate $4 billion in iOS revenue in Europe by 2020, accounting for 51% of Apple’s app Store’s total local revenue. Based on current trends, revenue sparing for non-gaming applications in Europe is expected to remain high over the next three years, reaching 61% in 2022.
Overall, the European App Store and Google Play are expected to generate $23.5 billion in annual revenue by 2022, up 109 percent from 2019 and a compound annual growth rate (CAGR) of 27.9 percent.
App Store and Google Play to double revenue in Europe
Sensor Tower estimates that the European App Store will have revenue of $12.6 billion by 2022, up 109 percent from $6 billion in 2019 and a compound annual growth rate (CAGR) of 27.8 percent. Revenue from Google Play is expected to reach $10.9 billion in 2022, up 109 percent from 2019, with a compound annual growth rate (CAGR) of 27.9 percent. The App Store’s revenue share on dual platforms is in line with 2019, at 53.7%.
In terms of download volume, we estimate that by 2022, the number of downloads on the dual platform will reach 29.6 billion, an increase of 22.7% over 2019 and a compound annual growth rate (CAGR) of 7.1%. Among them, Google Play was downloaded 22 billion times, an increase of 24.9% over 2019 and a compound annual growth rate (CAGR) of 7.7%. The App Store was downloaded nearly 7.6 billion times, up 16.8 percent from 2019 and 5.3 percent at a CAGR.
Uk and Germany remain the main drivers of revenue growth
The UK, Europe’s highest-earning market, is on track to generate $4.1 billion in revenue in 2022, up 91.6 per cent from 2019. The German market was the second largest, with revenues of nearly $3.7 billion, up 77.9 percent from 2019. France, the third-largest market for revenue, will reach $2.6 billion, up 91.4 percent from 2019.
Russia remains the largest download erever in Europe, with an estimated 6.2 billion downloads in 2022, up 17.2% from 2019. This is followed by Turkey, where downloads are expected to be close to 4 billion, an increase of 32.8% over 2019. The UK ranked third, up 19.4 per cent from 2019 to 2.6 billion.
Social apps will become the no.2 category in revenue
Over the next three years, the game will remain the highest-paid category in the European mobile market. Total revenue from mobile games in the Apple App Store and Google Play is expected to reach $12.9 billion by 2022, up 72.8 percent from 2019.
In 2020, social apps will surpass life apps as the no.2 category in revenue. Total revenue from social applications on dual platforms is expected to reach $1.4 billion by 2022, up 174.7 percent from 2019. Life apps rank edited third, with revenue spending expected to be $1.3 billion in 2022, up 162.7 percent from 2019.
Overall, the share of mobile gaming revenue in the European market is declining year by year, from 66% in 2019 to 55% in 2022. At Apple’s App Store, mobile gaming is expected to account for just 39% of revenue by 2022. On Google Play, mobile games are still the main draw, although the share will fall from 81% in 2019 to 73% in 2022.
In terms of downloadvolume, mobile games remain the most downloaded category in the European market, with 12.4 billion downloads expected by 2022, up 19% from 2019. Tool apps will be the second-largest category for downloads, with 2.2 billion downloads expected in 2022, up 13.6% from 2019. Photography and video is estimated to have been downloaded nearly 1.6 billion times, ranking third, up 18.1 percent from 2019.
The Rise of Mobile Apps in Europe
Taken together with the above analysis, we expect mobile applications (non-gaming) to be the growth drivers of the European mobile market in the next 3 years. While mobile games continue to grow, the explosion of mobile apps will slash the game’s revenue share. The rapid rise of mobile applications will help non-gaming app vendors quickly gain a significant user size in the short term, thereby driving the diversification and sustainable development of the mobile ecosystem.