Mubaloo’s director of mobile strategy, Gemma Coles, shares her insight speaking at the launch of the European Union’s study into the EU app economy.
If you were to keep on growing at the same rate you did in the first month of your life, you’d be 13 feet tall by the age of seven. Pretty incredible isn’t it? A lot can happen in the space of seven years.
Technology isn’t limited by human biology. In just seven years, the European app industry has grown from a relatively niche market, creating software for PDAs, to a global force for change.
With no signs of slowing, there has been notable interest among business leaders & the developer community to quantify the growth projections and explore how to maximise the potential.
It is no wonder that the EU Commission has paid particular attention to the emergence of this new era. Europe has long been recognised as a hotbed for digital talent and user experience.
Estimated to have generated £14.6 billion (€17.5 billion) in 2013, the EU app industry has over one million people working in it. Aside from creating new job opportunities, the app industry has increased the demand for new skills and introduced innovative solutions in all aspects of life, business, health and education.
By 2018, there will be an estimated 2.8 million people working in the app industry. Additional support and marketing staff will create 4.8 million in 2018, up from 1.8 million in 2013.
Whilst many would expect that revenue to come from in-app sales, in-app spending for virtual goods, and advertising, it was actually contract labour that represents the highest form of monetisation for development (£5.02 billion (€6.0 billion) vs. £9.62 billion (€11.5 billion) respectively). By 2018, the EU app industry is forecast to generate £52.7 billion (€63 billion).
Much of the developer-for-hire business is for companies that aren’t really in the app business per se but use apps to support and market their mainstream offerings like financial services, retailing, and packaged goods.
Mubaloo started out as a typical app developer, creating apps that we thought could be sold to end-users. Early on, we realised that the true potential lies in actually in creating apps that help companies.
We seem to be on the right side of the market. Fewer than half of the independent developers surveyed for Eurapp said they were offering services for hire. The results also demonstrated that half of enterprises doing in-house development also used third-party developers (such as Mubaloo).
Mubaloo was invited to speak at the launch event of the study held in Brussels, talking alongside Rovio
, The Factory and the Vice President of the European Commission, Neelie Kroes.