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A Saturated Market: Mobile App Usage Growth Slows After a Decade

Overall app usage grew by 11%, while time spent rose by 69%. Yet growth varied sharply across categories, with social and messaging apps gaining ground as other categories lost usage, reflecting an increasingly mature mobile market.

Historical article. Product claims, platform details, and timing advice in this article have not been verified for today.

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In brief

Mobile app usage growth was slowing as the market approached saturation. In 2016, overall usage rose by 11% and time spent by 69%, with social and messaging apps driving growth while gaming time declined.

Compared with the previous year, overall app usage grew significantly by 11%, while time spent in apps rose by 69%. In recent years, usage had increased across all mobile app categories. This year, however, the trend was markedly different.Mobile app competition has intensified. When sessions and time spent increase in one app category, usage in other categories falls accordingly. Sessions in messaging and social apps surged by 44% year on year, while sessions in device personalization apps plunged by 46%. This sharp decline in usage can be attributed to the diminishing value these apps deliver to users.

 

2016 was the year social apps took over from traditional media and telecommunications companies

Time spent in social and messaging apps soared by 394% last year, driving a 69% year-on-year increase in time spent on mobile devices. This resulted from consumers using social and messaging apps for voice and video calls, a phenomenon known as “Communitainment.”News and magazine apps saw sessions fall by 5%, while music, media and entertainment recorded growth of just 1%, indicating that social apps had taken over from the traditional media industry.

 

Always at hand: apps become part of everyday routines

Growth in business and finance apps, where time spent rose by 43%, and sports apps, where it increased by 25%, showed no signs of slowing. These categories are central to mobile device use and depend more heavily on real-time data. Users continue to change their habits, moving live sports coverage, market reports and morning news from traditional media channels to mobile apps, so time spent in these app categories is expected to increase further.

 

The fading star of gaming apps

Gaming apps were once regarded as the “darling of the mobile industry,” yet time spent in them fell by 4% year on year. Users are becoming increasingly accustomed to paying for games, and Apple's latest App Store report indicates significant growth in total mobile gaming revenue. At the same time, gaming has always been driven by trends. Pokémon Go, the first gaming craze of 2016, faded relatively quickly as consumers lost interest within a short period, with renewed interest appearing only around major holidays. Another craze, Super Mario Run, launched late in the year and had little impact on overall time spent.

 

Shopping apps help retailers turn their fortunes around

After the holidays, there was no shortage of news reports about major retailers experiencing disappointing sales. Mobile retail, however, told a very different story. Time spent in shopping apps grew by 31%. Mobile devices and apps effectively tapped into consumers' impulse to buy, generating this substantial growth.

 

Phablets dominate

As predicted in last year's report, phablets are dominating the global market, capturing a 41% market share. Although the report's forecast was not fully realized, users continue to find value in larger screens. This trend is directly related to growth in media and social apps. As less mature smartphone markets increasingly adopt phones with larger screens, phablets will continue to take market share from medium-sized phones and may even eliminate small phones entirely.

 

After a decade, mobile devices reach a pivotal moment

As the iPhone marks its tenth anniversary, the mobile industry has become fiercely competitive. Slowing growth reflects an increasingly mature market approaching saturation and may signal the end of the app gold rush. It is exciting to consider what kinds of apps developers will create over the next decade and which industries they will disrupt.

A saturated market: mobile app usage growth slows after a decade

Frequently asked questions

What indicates that the mobile app market was approaching saturation?

Overall app usage grew by 11%, but growth differed sharply across categories, with gains in some accompanied by declines in others. The article interprets slowing growth as a sign of a maturing market approaching saturation.

Why did time spent in social and messaging apps increase so sharply in 2016?

Consumers were using these apps for voice and video calls, a phenomenon the article calls “Communitainment.” Time spent in social and messaging apps rose by 394%, helping drive a 69% increase in time spent on mobile devices.

How did gaming apps perform?

Time spent in gaming apps fell by 4% year on year, even as Apple's App Store report indicated significant growth in total mobile gaming revenue. Interest in Pokémon Go faded relatively quickly, while Super Mario Run launched too late in the year to have much impact on overall time spent.

How did shopping apps help retailers?

Time spent in shopping apps grew by 31%, despite reports of disappointing sales at major retailers after the holidays. The article attributes this growth to mobile devices and apps effectively tapping into consumers' impulse to buy.

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