India's App potential to remain low, no matter what the download numbers say [Report]
Indians are downloading apps and a lot of them, but the truth is that the revenue potential of app economy will continue to grow (very) slow, as per a report from App Annie.
In 2017, mobile game downloads in India are forecast to grow by 111%, while generating less than 1% of global consumer spend.
India is poised for spectacular growth in smartphone ownership over the next five years. As a result, it is expected that app store downloads will grow at an annualized rate of 28% to nearly 23 billion by 2021.
Given the recency of smartphone adoption, India is not yet driving material app store revenue. We expect app store spend to grow at a rate of 75% annually to $2.1 billion in 2021, but its share of global spend is expected to remain under 2%.
Purchasing power in India is significantly lower than mature markets and this is compounded by the fact that cultural norms favor saving over discretionary spend on gaming and entertainment.
So what should you do as an app publisher?
Invest in mature markets
The top five mature markets is expected to account for 85% of global consumer spend in 2021, a key stat to keep in mind when planning growth strategies.
Focus on subscription revenue models.
Consumer spend on non-game apps should grow at 25% CAGR versus 16% for Games from 2016–2021. App publishers in the media, news and dating verticals should increase their investments in subscription revenue models as these categories are forecast to be the primary beneficiaries of this growth.