2021
9
UK Mobile Device Apps Market Report 2021
2021-10-12T04:07:02+01:00
OX1050093
2195
143427
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Report
en_GB
“The wider adoption of apps due to the pandemic will lay a strong foundation for their habitual use in consumers’ lives in the long term. The growth of the apps…

UK Mobile Device Apps Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Mobile Device Apps market, including the behaviours, preferences and habits of the consumer.

Mobile device apps had great importance under lockdown, as consumers relied on apps for retail, entertainment, and health and fitness purposes. Throughout the pandemic more sales took place online and the contactless payment limit was extended to match demand. Behaviours lent on in the last 18 months will persist longer term, meaning apps will continue to play an integral part in consumers’ lives.

76% of finance app users have used a banking app in the last 6 months. While older generations such as the over-65’s are the least likely to use finance apps overall, 84% of those who do use banking apps. The older generations are typically not at the forefront of driving app use, so the embracing of mobile banking by this age group is a positive example of how technology can work for all generations.

Spending in apps, such as retail and foodservice, see relatively high levels of average monthly spend. 69% of consumers who shop around for products look in store prior to buying online, and a further 35% use online prices to haggle in store. New commerce opportunities arriving on social media, apps such as Instagram, TikTok, Pinterest and Facebook will make this channel highly competitive for consumers’ attention and spending in the coming years. Brands must ensure visibility to meet consumers where they are spending increasing amounts of time.

Read on to discover more details or take a look at all of our UK Technology market research.

Quickly understand

  • The impact of COVID-19 on the mobile apps market including consumer attitudes towards The NHS COVID-19 app.
  • Innovations of companies operating in the mobile apps market.
  • Key factors driving the market and projections for the market size of the mobile app market to 2026.
  • What apps consumers use and how frequently they download them.
  • Advertising and marketing spend of companies operating in the mobile device apps market.
  • Consumer attitudes and behaviours, including how much they spend in key app categories monthly, why they delete apps, what finance apps consumers use and attitudes towards health and wellness apps and app fitness subscriptions.
  • Competition in the mobile app industry and app industry trends.

Covered in this report

Brands: Apple, Google, Facebook, Deliveroo, Uber Eats, Weezy, Getir, Gorillas, NatWest, Money Dashboard, Yolt, Vinted, Peloton, Moonpig.com, Expedia, Barclay’s, Compare The Market, Clear Score Technology.

Expert analysis from a specialist in the field

This report, written by Joe Birch, a leading analyst in the Technology sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The wider adoption of apps due to the pandemic will lay a strong foundation for their habitual use in consumers’ lives in the long term. The growth of the apps market is built on the foundations of strong interest in gaming, social and entertainment. As apps become vitally important everyday life tools, services are increasingly converging and Super-apps offering multiple services in a single app are likely to become more common.

Joe Birch
Consumer Technology Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • COVID-19 has a positive impact on the market as people turn to apps
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the mobile apps category, September 2020
    • The market
    • 2021 sees further increase in consumer spend on apps and games
    • Mobile gaming continues to drive revenues and is the most popular app category of 2020
      • Figure 2: Consumer spend on App Store and Google Play Store apps and games, 2014-20 and H1 2021
    • Freemium still the dominant revenue model
      • Figure 3: Consumer spend on App Store and Google Play Store apps and games, 2018-21
    • Value of mobile apps market to increase 22.5% in 2021
      • Figure 4: Market forecast for mobile device apps, 2016-26 (prepared on September 3, 2021)
    • Companies and brands
    • COVID apps still dominate UK App Market in Q2 2021
    • The consumer
    • Future use of apps reflects COVID-19’s legacy of health concerns
      • Figure 5: Interest in future use of technology apps, services and devices, 2021
    • Social media and messaging apps are the most frequently used
      • Figure 6: Frequency of use of mobile apps, 2021
    • Use of banking apps continues to grow
      • Figure 7: Use of finance apps, 2021
    • Retail, Food and Grocery apps drive in-app spending
      • Figure 8: Typical monthly spend in app categories, 2021
    • Lack of use and intrusive adverts drive churn
      • Figure 9: Reasons for deleting mobile apps, 2021
    • Apps can form part of hybrid fitness routines
      • Figure 10: Attitudes towards mobile apps, 2021
  3. Issues and Insights

    • Retail apps can enhance the in-store experience
    • Social Media apps set to take a greater share of spending
    • Live streaming apps will become a key arena for brand visibility
  4. The Market – Key Takeaways

    • COVID-19 has a positive impact on the market as people turn to apps
    • Mobile gaming continues to drive revenues and is the most popular app category of 2020
    • Freemium still the dominant revenue model
    • Value of mobile apps market to increase 22.5% in 2021
    • COVID apps still dominate UK App Market in Q2 2021
    • WhatsApp and TikTok dominate App charts in UK in 2021
    • Future use of Apps sees COVID-19’s legacy of health concerns increase
  5. Market Size and Performance

    • COVID-19 has a positive impact on the market as people turn to apps
      • Figure 11: Short-, medium- and long-term impact of COVID-19 on the mobile apps category, September 2020
    • 2021 sees further increase in consumer spend on apps and games
    • Mobile gaming continues to drive revenues and is the most popular app category of 2020
    • Mobile gaming habit continues to drive revenues in 2021
      • Figure 12: Consumer spend on App Store and Google Play Store apps and games, 2014-20 and H1 2021
    • Freemium still the dominant revenue model
      • Figure 13: Consumer spend on App Store and Google Play Store apps and games, 2018-21
  6. Market Forecast

    • Value of mobile apps market to increase 22.5% in 2021
    • Retail apps will build on pandemic bounce in 2021 and beyond
    • Booking apps will see the benefits of travel industry opening up
    • Streaming will continue to be a popular mobile entertainment medium
      • Figure 14: Market forecast for mobile device apps, 2016-26 (prepared on September 3, 2021)
      • Figure 15: Gross mobile app revenue for App Store and Google Play Store, 2016-26
    • Market drivers and assumptions
      • Figure 16: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 15 September, 2021)
    • Forecast methodology
  7. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • Mobile device apps stand to benefit even in return of COVID disruption
      • Figure 17: COVID-19 scenario forecasts for the mobile device apps category, 2016-26
    • Extended disruption will mean people lean on digital channels more
    • COVID-19 market disruption: risks and outcomes
      • Figure 18: Summary of Mintel scenario expectations and the impact on the mobile device apps market, 2021
  8. Market Segmentation

    • Finance, payment and trading apps all saw greater prominence throughout 2020
    • TikTok’s stellar year powers social media app growth
    • 2020’s lockdowns drove growth in mapping and exercise apps
  9. Market Drivers

    • Event booking apps rebound as leisure industry re-opens
      • Figure 19: Expectation of participation in leisure activities, 2020, 2021
    • Mobile apps will have a role to play in supporting mental health
      • Figure 20: Consumer attitude towards mental health post-pandemic, 2021
  10. Companies and Brands – Key Takeaways

    • Dating apps have a makeover to provide more meaningful connections
    • Audio apps focus on building global communities
    • Snap seeks to match creators with brands
    • TikTok launches a jobs service and “Spark Ads”
  11. Competitive Strategies

    • COVID apps still dominate UK App Market in Q2 2021
    • Apps provide COVID security as the economy reopens
      • Figure 21: Top 10 downloaded apps in UK, Q2 2021
    • WhatsApp and TikTok dominate App charts in UK in 2021
    • WhatsApp’s privacy update means rivals gain ground
      • Figure 22: WhatsApp clarification by Twitter of privacy update, January 2021
    • Social media apps seek to monetise short-form videos
    • Race for pace, as instant delivery apps compete for market share
    • Dating apps have a makeover to provide more meaningful connections
  12. Launch Activity and Innovation

    • Short-form video platforms add e-commerce functionality
    • New dating apps leverage shared interests and emotional compatibility
    • Audio apps boom as big tech firms look to join the club
    • Google maps adds Augmented Reality upgrade feature to its maps software
    • Instagram adds Community Content feature for businesses
    • Snap matches creators with brands
    • Snap places community at the heart of its new Snap Original Series
    • TikTok launches a jobs service and “Spark Ads”
    • Catering to the increased demand for rapid grocery deliveries
  13. Advertising and Marketing Activity

    • Advertising spend on mobile apps jumps 60% in 2021
      • Figure 23: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, 2016- 21
    • Peloton in pole position
    • Delivery companies tap into major sporting occasions to be viewing partner of choice
      • Figure 24: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, by top ten advertisers 2020/2021
    • Nielsen Ad Intel coverage
  14. The Consumer – Key Takeaways

    • Digital behaviours see return as threat of Delta spread returns
    • Apps will benefit from a shift to digital channels
    • Social media and messaging apps are the most frequently used apps daily
    • Digitally native audiences drive daily app usage across communication apps
    • Health and wellbeing apps offer convenience for time stretched families
    • Retail and Food and Grocery apps drive in app spending
    • Lack of use and intrusive adverts drive churn
    • Holistic health management apps can empower consumers
  15. Impact of COVID-19 on Consumer Behaviour

    • Fears of mass deletion of NHS app due to pingdemic unfounded
    • Privacy concerns can threaten NHS app’s trust levels
    • Give consumers control of their data to generate trust
      • Figure 25: Cumulative downloads of NHS COVID-19 app in England and Wales, 2021
    • Digital behaviours see return as threat of Delta spread returns
    • Apps will benefit from a permanent behavioural shift to digital channels
      • Figure 26: Changes in shopping habits since the start of the COVID-19/coronavirus outbreak, 2020, 2021
    • Future use of Apps sees COVID-19’s legacy of health concerns increase
      • Figure 27: Interest in future use of technology apps, services and devices, 2021
  16. Use of Mobile Device Apps

    • Social media and messaging apps are the most frequently used
    • AVOD streaming service apps can appeal to consumers
    • Aggregated entertainment apps can gain traction with heavy media users
    • Convergence of apps within a single service can bolster convenience and bring services together
      • Figure 28: Use of mobile device apps, 2019, 2020, 2021
    • Digitally native audiences drive daily app usage across communication apps
    • Health and wellbeing apps offer convenience for time-stretched families
      • Figure 29: Frequency of use of mobile apps, 2021
  17. Use of Consumer Finance Apps

    • Use of banking apps continues to grow
    • Social media spend and QR code use can drive up mobile wallet use
    • Mobile banking apps will cement their place for consumer interaction with financial services providers
    • Increasing digitisation of banking apps can drive better money management habits
      • Figure 30: Use of finance apps, 2021
  18. Frequency of Mobile App Downloading

    • Small increase in weekly downloads
    • Frequent downloading of apps will be a consistent feature going forward as digital behaviours evolve with COVID threat
      • Figure 31: Frequency of mobile app downloads, 2020, 2021
  19. Consumer Spending in Mobile Apps

    • Retail, Food and Grocery apps drive in-app spending
    • Food delivery apps look set to take a bigger bite of in-app spend powered by new market entrants
      • Figure 32: Typical monthly spend in app categories, 2021
  20. Reasons for Deleting Mobile Apps

    • Lack of use and intrusive adverts drive churn
    • Balancing a need for mindful communications can be key
      • Figure 33: Reasons for deleting mobile apps, 2021
  21. Attitudes Towards Mobile Apps

    • Apps can form part of hybrid fitness routines
    • Holistic health management apps can empower consumers
    • NHS’ wealth of data makes it primed for a consumer-focused digital health management app
      • Figure 34: Attitudes towards mobile apps, 2021
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix: Central Forecast Methodology

    • Market forecast and prediction intervals for mobile device apps sector
      • Figure 35: Lower bound, central and upper bound forecast for mobile device apps, 2021-26
    • Market drivers and assumptions
      • Figure 36: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology
  24. Appendix: COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 37: Scenario performance for value of mobile device apps, 2021-26
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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