App revenue reaches $92.1 billion in 2018 driven by mobile gaming apps

Consumers are now spending $92.1 billion on apps in 2018, and 76% of all app revenue comes from mobile games, according to the latest report from Newzoo.

The global smartphone market has flourished over the past few years and the number of smartphone users is predicted to reach 3 billion by the end of 2018. That’s 39% of the world population. Meanwhile, half of this growth comes from Asia Pacific where 1.6 billion users own smartphone devices.

By 2021, the total number of smartphone users worldwide will reach 3.8 billion (just under half 48% of today’s global population. The majority of this growth is being attributed to China and India.

China also has the most active smartphone users at 783 million, followed by India at 375 million. That’s hardly surprising given the country’s population sizes. The US ranks third at 252 million smartphone users.

Samsung continues to be the most popular device maker at a market share of 27%, but is now more closely followed by Apple at 24%. Other Chinese brands such as Oppo, Xiaomi, Huawei and Vivo follow in third to sixth place.

Global app store revenue is predicted to increase to a total of $139.6 billion by 2021, with $33.3 billion coming from non-gaming apps and $106.4 billion from gaming apps.

Meanwhile, Newzoo predicts that mobile-first video streaming will likely become a major focus for many large broadcasters (e.g. HBO), device makers such as Apple and social media networks like Facebook which recently launched Facebook Watch.