• The mobile application market is demonstrating strong growth despite the pandemic
  • Confianz Global, led by Anoop Menon has taken major strides with the provision of sophisticated software solutions to SMEs through open source software
  • Mobile games are a notable driver of market growth largely due to the prevalence of in-game purchases

With the global mobile application market accelerating beyond $154.05 billion by 2020, which is set to grow at a CAGR of 11.5% between 2020 and 2027, it is firmly on track to surpass $350 billion by 2027. Notwithstanding the fact that app owners like Elon Musk decry the excessive cost of the big tech ecosystem, Google, Apple, Amazon, Microsoft and Facebook in particular benefit from the breadth of mobile applications from games to health and fitness applications. There are several factors which will contribute to the growth of the mobile application market and these include the increasing ubiquity of smartphones as well as internet connectivity.

Mobile Applications Market

Other factors which are driving the growth of the market include the increasing integration of technologies such as AI and machine learning into mobile applications. These technologies are increasing the sophistication and power of mobile applications which is leading to increased scope and potential for the development of mobile applications. The vast majority of all mobile applications are downloaded from the Apple App Store and the Google Play Store. The distribution of the revenue generated by these platforms is roughly two thirds Apple and one third Google.

The drastic increase in the penetration of smart devices coupled with improved internet connectivity in developing nations like Brazil, China and India is one of the major reasons for the increase in the market size. The lowering costs of internet connectivity contributes significantly to the accessibility of mobile applications which furthers their growth potential. Ecommerce is another factor which is driving the market as these platforms increase the accessibility of mobile applications by offering discounts and other purchasing incentives.

Mobile gaming is a very lucrative segment of the mobile application market as consumers are becoming more likely to purchase mobile games. They are also more likely to make in-game purchases once they have become interested in the rewards which this will offer their gaming experience. Many notable mobile games make the lion's share of their revenue through in-game purchases as opposed to the purchase price of the game itself. This is in part due to the theoretically unlimited ceiling which in-game purchases represent.

The mobile gaming industry is also one the market segments which is making the most out of the technological advancements which have occurred in the industry. Technological refinement of gyroscopes, accelerometers and motion sensors have enabled mobile game developers to explore virtual and augmented reality in an unprecedented manner for the mobile market. A notable example of this is the game Pokemon Go which uses all of these technologies to create a more immersive experience for its players.

The coronavirus pandemic has not had a negative impact on the mobile application market as these applications are innately socially distanced. Additionally, people are more likely to turn to their mobile devices for entertainment given the restrictions put in place to curb the spread of the virus. Entertainment, social media and games were the biggest winners in this regard as they provide socially distanced entertainment and connectivity at a time when this is increasingly more difficult to come by.

Due to the appealing market statistics, many business owners have begun to pursue mobile app development. However, their first point of concern is how much it costs to build a mobile app.

Confianz Global and Open Source Software

Confianz Global is a software solutions company which focuses on using open source software to provide high-quality and intuitive software to their clients without charging exorbitant prices. The company was founded by Anoop Menon who is also the company CEO. He had the idea to found the company after he was retrenched, along with all of his colleagues, following the acquisition of the company for which he worked. Whereas Elon Musk is currently frustrated by excessive “internet tax” levied by Apple and some other providers, Menon started out because he was frustrated with the absurd pricing of software which large proprietary companies carried out. This pricing structure alienated small and medium businesses and even some large companies.

Anoop Menon
Anoop Menon Anoop Menon

It was based on this jumping off point that Menon decided to target SMEs using open source software. Open source software is software which is available for free and allows its users to access its programming so that they may modify and improve the software to their tastes. This creates a public, collaborative environment for software development. One of the services which Confianz offers is that of a mobile app development agency. They have a great deal of experience in this regard and have grown their expertise over time.

Looking Beyond Big Tech Ecosystems: Be Where The User Is:

Indeed it is taxing for app owners to face up to Tim Cook’s 30% bill on app revenue share - especially if one considers the overheads involved. Anti-business EU legislation is also something to keep in mind for global players. However to opt out of app provision could literally be like refusing to be where your customers are, particularly in a mobile-first world. The number of success stories of new millionaires that were created - as well as the good that several apps brought to the world, is evident that the benefits far outweigh the hurdles or necessary evils associated with the phenomenon of apps.

Final Thoughts

The mobile application market size is considerable and is continuously growing at a strong rate. This growth is supported by increased penetration of smart devices and internet connectivity particularly in developing nations. The mobile gaming market segment is another strong driver of market growth thanks to the increased willingness of consumers to make purchases within the games themselves. Confianz Global is developing software of all varieties with a target market of SMEs. They utilize open source software to be able to deliver affordable software solutions to their clients.