The U.S. mobile application market size was estimated at USD 53.71 billion in 2023 and is projected to grow at a CAGR of 14.0% from 2024 to 2030. The rising necessity of smartphone applications in performing daily tasks is growing day by day, which is fueling the market growth. In addition, almost every business is adopting digital technology and developing smartphone applications for their respective products or services, which is also aiding in the market growth of mobile applications.
In 2023, the U.S. accounted for approximately 23.46% share of the global mobile application market. As the U.S. is considered the frontrunner in technology innovation and adoption due to its robust technological infrastructure as well as it is home to major technology companies, it is the earliest adopter of many new technological innovations. The proliferation of smartphones has led to the growth of smartphone applications, which has hugely benefitted e-commerce and social media companies as well as gaming companies. The user-friendly and 24x7 accessibility nature of smartphone applications has led to an exponential rise in its users. The advent of mobile applications has given rise to new revenue models such as in-app purchases, in-app advertisements, and paid game applications.
Gather more insights about the market drivers, restrains and growth of the U.S. Mobile Application Market
Over the past few years, there has been an upsurge in the number of mobile application buyers owing to growth in the e-commerce industry, product assortment, and various discounts and offers that are available only on e-platforms. The availability of low-cost data plans from telecom operators, which reduces the cost of the internet and attracts more users online is another factor accelerating mobile application downloads across all platforms. In addition, many sectors including healthcare, education, and finance among others are utilizing digital technology and offering various services through mobile applications. For instance, Siemens Healthineers’ Cinematic Reality app on Apple Vision Pro allows surgeons, medical students, and patients to view immersive, interactive holograms of the human body captured through medical scans in their real-world environment.
Data privacy in mobile applications is a growing concern as these platforms often collect sensitive personal information, including location, health, and contact data. The proliferation of mobile apps has led to increased data sharing with third parties, increasing concerns about user consent and control over their information. Despite regulations, there is still a significant risk of privacy invasion due to the extensive data apps can access, often without explicit user permission. Security vulnerabilities within apps can lead to data breaches, compromising user privacy and trust. These data privacy concerns may hamper the market growth of mobile applications.
The stage of growth is high at an accelerating pace. The degree of innovation is high given the rapid developments in the field of artificial intelligence and machine learning, which is extensively being incorporated in the development of diverse mobile applications. Artificial intelligence is empowering mobile apps with cutting-edge features such as voice recognition, chatbots, image recognition, photo apps, etc. Any mobile app can be integrated with AI tools to enhance app functionality and usability.
The U.S. mobile application industry is highly fragmented, with the presence of many big and small companies. The mergers and acquisitions activity in the industry is high as large companies are making strategic acquisitions of small companies to increase market share as well as trying to gain access to the latest technological innovations in the industry.
U.S. regulations are increasingly focusing on mobile applications due to their integral role in the digital ecosystem and the substantial personal data they handle. Authorities like the Federal Trade Commission (FTC) are intensifying privacy enforcement efforts, ensuring apps comply with federal regulations and broader data protection laws such as the California Consumer Privacy Act (CCPA) and General Data Protection Regulations (GDPR). Key concerns include complex data sharing with third parties, inadequate consent mechanisms, and the risk of data breaches. Companies are advised to conduct thorough data protection impact assessments (DPIAs) to identify and mitigate risks associated with mobile app data processing.
The threat of substitutes for mobile applications is low as there are no direct substitutes. Moreover, the growing adoption of mobile apps for various applications, such as online shopping, food ordering, and digital payments, is boosting the demand for mobile applications. With the growing internet and smartphone penetration, the need for mobile applications is expected to grow. The ease of use of mobile applications is likely to sustain their demand among users.
Key U.S. Mobile Application Company Insights
Some of the key mobile application companies include Google, Apple Inc., and Microsoft Corporation.
Amazon Web Services (AWS) provides a robust platform for mobile app development, offering a wide range of services designed to help developers build, deploy, and scale mobile applications efficiently. With the advent of cloud computing, AWS has become a go-to choice for developers looking to leverage the power of the cloud in mobile app development.Google, a subsidiary of Alphabet, is a U.S.-based technology company. The company operates in two reportable segments, namely Google Services and Google Cloud. The company operates the Google Play platform and provides various apps, such as YouTube, Google Maps, Gmail, and Chrome, among others. It has a global presence with over 70 offices across 50 countries.Cash App and Snap Inc. are some of the emerging mobile application companies
Cash App, a subsidiary of Block, Inc., has revolutionized the mobile payment landscape by providing a user-friendly platform for peer-to-peer transactions in the United States and the United Kingdom. As of February 2023, it boasts a robust monthly user base of over 51 million and annual revenues reaching US$ 10.6 billion. The service distinguishes itself with a diverse range of features, including direct deposits, a customizable debit card, investment opportunities in stocks and Bitcoin, and additional services like personal loans and tax filing.Snap Inc., the parent company of the widely popular social media platform Snapchat, has established itself as a leader in the digital communication realm since its inception in 2011. Headquartered in Santa Monica, California, Snap Inc. has expanded its offerings beyond the instant messaging app to include innovative augmented reality (AR) experiences and wearable technology. The company’s commitment to creativity and interactive engagement is evident in its diverse suite of AR tools, such as Lens Studio and Spectacles, which have redefined user interaction within the social media space.Key U.S. Mobile Application Companies:
Apple Inc.,Google LLCMicrosoft CorporationAmazon Inc.Electronic ArtsNetflix Inc.Cash AppSnap Inc.Ubisoft EntertainmentZyngaOrder a free sample PDF of the U.S. Mobile Application Market Intelligence Study, published by Grand View Research.
