In brief
Mainland China led global app spending in 2017, with nearly US$35 billion in spending and growth exceeding 270% over two years. Google’s absence benefited Apple and local Android app stores, while App Annie anticipated different growth paths for major cities and smaller cities and rural areas.
According to a report released by an app analytics platform on the 17th, mainland Chinese smartphone users’ total app spending in 2017 alone approached US$35 billion (approximately NT$1 trillion), making mainland China the world’s largest app consumer market. However, after Google withdrew from the market in 2010, many local apps seized the opportunity to grow, leaving Google missing out on billions of US dollars in revenue each year.
According to CNBC, mainland China’s app market is growing at a remarkable pace, with growth exceeding 270% over two years and potentially accelerating further. However, only Apple’s App Store and Android app stores operated by mainland Chinese companies such as Tencent and Baidu can capture a share of this market. When Google withdrew eight years ago, it also took most of its services, including the Google Play Store, offline in the market, and they have yet to return. Many mainland Chinese companies have also launched apps to seize the opportunity, with Tencent Video, iQIYI, Kuaishou and QQ among the top 10 apps by consumer spending.
Although mainland Chinese users can still access the Play Store through a VPN, the data shows that very few use this route.
▲ Mainland China became the world’s largest app consumer market.
App Annie predicts that mainland China’s app market will develop along two paths: an “urban version” and a “small-city and rural version.” Consumer spending in the former, including cities such as Beijing and Shanghai, is approaching saturation. The latter is still at an early stage, with users only beginning to become familiar with smartphones.
The data shows that global app downloads exceeded 175 billion last year, while consumer spending surpassed US$86 billion, more than doubling compared with 2015. People spent an average of three hours a day using apps. Mainland China maintained its position as the world leader, while India’s market grew by 215% last year, making it the world’s second-largest country by app downloads and pushing the United States from second place to third.
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