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Apple’s App Store has been a lucrative platform for developers over the past 15 years, reaching a remarkable milestone by earning more than $1 trillion in 2022. A recent study conducted by economists from Analysis Group delves into the growth of the App Store ecosystem, offering valuable insights into its evolution.
Impressive Revenue Generation
In 2022, the App Store ecosystem witnessed an extraordinary achievement as developers collectively earned $1.1 trillion in revenue from invoices and sales. Remarkably, over 90% of these earnings went directly to developers without paying any commissions to Apple.
Diverse Revenue Streams
App Store developers generated substantial revenue across various categories in 2022. Approximately $910 billion was derived from selling physical goods and services, $109 billion from in-app advertising, and an additional $104 billion from digital goods and services.
Notable Growth Trends
Between 2019 and 2022, there was a substantial increase in developer accounts and sales. From 2019 to 2020, there was a remarkable 201% surge, followed by a 27% growth from 2020 to 2021. The growth rate further accelerated to 29% from 2021 to 2022. Notably, small developers surpassed established developers, experiencing a significant 71% increase in revenue between 2020 and 2022.
U.S. developers have witnessed an impressive growth rate, exceeding 80% since 2019. Similarly, European developers experienced a remarkable 116% increase in invoices and sales, surpassing the overall average growth rate since 2019.
Thriving Market Dynamics
Analysts view these growth rates as positive indicators of a thriving market characterized by dynamism, innovation, and healthy competition. The App Store ecosystem provides ample opportunities for developers to succeed and thrive.
The study revealed that developers in various categories experienced growth in invoicing and sales. As COVID-19 lockdown measures eased, there was a surge in demand for travel and taxi booking apps. iOS travel app sales witnessed an impressive 84% growth from 2021 to 2022, while taxi app sales increased by 45% during the same period.
Food and grocery sales app categories also experienced significant growth, with food delivery and grocery sales more than doubling and tripling since 2019.
Enterprise applications gained popularity among companies worldwide, emerging as one of the fastest-growing categories of digital goods and services in 2022.
The app-based entertainment category saw remarkable growth in digital goods and services, driven by trends such as the creator economy and the rise of ancillary apps.
Expanding App Store Landscape
Since 2008, iOS developers have earned over $320 billion on the App Store. During the same period, iOS users downloaded apps over 370 billion times. The App Store now offers a vast selection of nearly 1.8 million apps, a significant increase from the end of 2008.
Apple’s Commitment to Developer Success
Tim Cook, Apple’s CEO, expressed his encouragement and inspiration from the incredible developer community worldwide. He emphasized Apple’s commitment to investing in developer success and the future of the app economy, recognizing the App Store as a dynamic and innovative marketplace where opportunities thrive.