The revenue share of the European smartphone and tablet app market has, in relation to the global market, decreased in the past two years. In 2012, the European share still amounted to 25% of the total market, in 2014, this was only 19%. Even though European sales rose by 12% last year to $16.5 billion, the European market is unable to keep up with the rapid growth of the global app market – which is growing at a much faster pace. This is concluded in a recent survey by market research firm Vision. According to the researchers, Europe will have to invest in a better business climate to improve the attractiveness of the application market for start-ups.
European App Economy Research
Recently, market research firm Vision published a new research report entitled ‘European App Economy Research Note’, in which the firm investigated the European and global market for smartphone and tablet apps. The report shows, among other things, that the European market in 2014 represents 19% of the global apps sales, which amounts to $16.5 billion. The rest of the world represents 81% of the turnover ($69.8 billion). Although the European turnover increased by 12% (from $13.3 billion to $16.5 billion) compared to last year, the turnover of the rest of the world increased with no less than 73% (from $40.4 billion to $69.8 billion). This resulted in a decrease of the European share in the revenue of apps in comparison to the rest of the world, from 25% (in 2012) to 19% this year. Conclusion: the European market is unable to keep up with the global app turnover, the report states.
According to the research, the developments within the European app market will ensure the creation of approximately a million jobs this year. The largest portion of these jobs will consist of technical functions/software developers (406,000 jobs), non-technical functions (261,000 jobs), and indirect jobs/suppliers for application developers (333,000 jobs).
Fertile business climate
The research firm also concludes that the pace, by which the European app economy is growing, is held back by the aversion to risks. Programmers consider building an app themselves and independently putting the app on the market to be a too great a risk. As a result, many programmers (31%) are working on a contract basis, limiting their own initiatives. This tendency to work on a contract basis is a strong indication that there is a fairly large demand for app developers. However, little is invested in this area as is shown by the limited development capital in Europe. Vision recommends Europe to improve its business climate and the accessibility for starting application developers, to prevent the investment of European capital elsewhere.