Analysis of the mobile application market in India
The relevance of research
The mobile application market is now regarded as a new channel for effective interaction with customers and the target audience and offers programs of various kinds. The dynamics of the volume of the mobile application market in India for the period 2017-2020 is growing, the market is developing at a fairly fast pace both within the country and globally.
Purpose of the study
Analysis of the state of the mobile application market, assessment of the market size, competitor analysis, consumption analysis, as well as identification of factors affecting the mobile application market
Content
Chapter 1. Overview of the mobile application market in India, 2017-2020
1.1. Main characteristics of the market
1.2. Assessment of the dynamics of the market volume in 2017-2020 Potential market capacity
1.3 Current trends and prospects for the development of the studied mobile application market. Examples of projects from foreign practice
1.4. Assessment of factors affecting the market
1.4.1. Social factors
1.4.2. Technological factors
1.4.3. Economic forces
1.4.4. Political factors
1.4.5. Conclusions about the influence of factors on the market
1.5. Risk Analysis
1.6. Structure of the mobile application market
Chapter 2. Analysis of mobile applications of TOP-20 competitors
2.1. The level of competition in the market
2.2. Major Players
2.3. Description, pros and cons of mobile applications of the largest Indian retailers and technology leaders
2.4. Used technologies, chips, novelties, etc. with specific examples
2.5. Availability on the market, cost, interaction format (subscription / sale, etc.)
2.6. Analysis of sales channels and marketing activities of the largest competitors
Chapter 3. Consumption Analysis
3.1. Market saturation
3.2. Key consumer trends in India. Changes in user behavior of mobile application clients
Chapter 4. Forecasts and conclusions
4.1. Barriers in the market
4.2. Prospects and market growth drivers
4.3. Market development forecast until 2024
4.4. Key findings from the study
Research excerpt
Part 1. Overview of the mobile application market in India, 2017-2020
1.1. Main characteristics of the market
A mobile application is software (software) specially designed for the functionality of gadgets. The purpose of the software can be very diverse: services, shops, entertainment, online assistants, and more. These applications are downloaded and installed by the user through mobile marketplaces. The largest platforms are App Store, Google Play. Technically, all applications are created for a specific mobile gadget platform. The most popular operating systems are iOS, Android, Windows Phone.
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Modern mobile applications are becoming more and more diverse. According to the business orientation, mobile applications can be of two types. The former optimize the internal processes of the organization, company, service. The latter are used in the marketing plan, that is, for communication with customers, sales and brand promotion.
Consider the main types of mobile applications.
Table 1. Classification of mobile applications
The main advantages of mobile applications are:
• Convenient and understandable navigation for gadget users, mobile menu.
• Better user experience through messages, push notifications, reminders. To work with the program, you do not need to open a browser, and many applications support a number of functions even when the Internet connection is turned off.
• Storage of user's personal data.
• More flexible feedback with the company, service.
• More resources can be used. For example, connect geolocation and call a taxi anywhere in the city.
• Involvement of clients, more flexible feedback with the company, service. With the help of a mobile application, customers can actively use loyalty programs, discount offers and promotions. Through a mobile application, you can receive customer feedback on the work of the institution, service, staff, quality of goods and services.
• A convenient way to control business performance. Mobile apps allow you to set up ecommerce tracking and collect information about all items purchased, the total number of purchases, and their cost.
1.2. Assessment of the dynamics of the market volume in 2017-2020 Potential market capacity
Consider the dynamics of the volume of the mobile application market in India.
Diagram 1. Dynamics of the mobile applications market volume, 2017-2020, billion Rs.
The dynamics of the volume of the mobile applications market in India over the period under review is growing, the market is developing at a fairly fast pace.
In total, there were … billion apps installed by users in India in 2020, which is almost ..% of the global mobile app downloads. The top downloads in India are... .
If we consider as a target that the monthly audience of mobile Internet in India will be 100% of the population from 12 years old, then the potential capacity will be equal to … .
1.2 Current trends and prospects for the development of the studied mobile application market. Examples of projects from foreign practice
To date, the mobile application market is at the stage of growth and has not reached the saturation limit.
The key trends in the mobile app market are:
• Growth of mobile commerce. During the coronavirus pandemic, when shopping centers closed, people increasingly began to use mobile phones to make purchases. According to … in 2020, Indians spent … million hours on shopping, which is … % more compared to 2019. This trend will continue in the future.
• ...
1.4. Assessment of factors affecting the market
1.4.1. Social factors
• Population
During the period 2010-2018, there was an increase in the population. An increase of 1,81% in 2015 compared to 2014 is due, in addition to natural growth and growth due to migration, by the accession to the territory of the state of the Republic of Crimea and the city of Sevastopol.
During the period under review, there has been a decrease in the population since 2019.
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Diagram 2. Dynamics of the population of India, as of January 1, 2010-2021, million people, %
• Real disposable money income of the population
Effective demand depends on the economic situation and the level of real incomes of consumers.
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For the period 2014-2017, there is a downward trend in real incomes of the population and living standards. In 2014, the real incomes of the population fell by 1,2%, in 2015 - by 2,4%, in 2016 there is a maximum decrease in incomes by 4,5% compared to the previous year. Based on the results of 2018-2019, there is a slight increase in real incomes of the population.
• Shift in consumer and communication habits towards mobility
The ubiquity of mobile devices has completely changed user behavior. Convenience and time savings are becoming one of the main factors in using the Internet when searching for goods. From a convenient tool where you can find unusual goods, the Internet is becoming an integral part of life, including saving money. And this behavior of buyers is becoming a driver for the development of e-commerce.
Also, the main trend affecting the development of the application market in India and in the world is the acceleration of the rhythm of life and the growing need to receive services without leaving home.
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• Mobile Internet users - The number of mobile Internet users in India is increasing every year, which has a positive effect on the market in question.
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1.4.2. Technological factors
• Development of the mobile device market
According to the Indian electronics and household appliances retailer … sales of smartphones in India in 2020 increased by approximately … % in physical terms and … % in value terms.
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Chart 5. Sales of smartphones in India, 2014-2020, million units
• Development of mobile communications
Communication allows for even higher data transfer rates, resulting in an increase in the quality of the services provided, which, in turn, leads to the rapid spread of modern multimedia services (social networks, multiplayer games, interactive online applications, video conferencing, video calls, positioning services, and much more). other).
• Growth of e-commerce
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1.4.3. Economic forces
• Dynamics of GDP
Chart 6 shows India's GDP growth rate from 2012 to 2020 at comparable prices (at 2016 prices).
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According to Rosstat data for the period 2012-2014, there is a positive GDP growth rate, while the indicator gradually decreased, and in 2015 it was less than zero. In 2015, which was the peak of the crisis in the country, the decline in GDP was 2% compared to the previous year in 2014, and since the dynamics of GDP is directly proportional to the well-being of citizens, this indicates a drop in family incomes, a reduction in demand, and an increase in prices. It also led to a decline in production and employment.
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Thus, at present, the factor of GDP decline has a negative impact on the mobile application market.
• COVID-19 pandemic
The coronavirus pandemic has had both a negative and a positive impact on the mobile app market in India.
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1.4.4. Political factors
• Mandatory pre-installation of Indian applications
In November 2019, the Federal Law “On Amendments to Article 4 of India “On Consumer Protection” was adopted, according to which, from July 1, 2020, the mandatory pre-installation of Indian applications on devices imported into the country is provided.
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• Standard for mobile applications
By order of Rosstandart on July 10, 2018, the national standard 277-2018 “Indian quality system. Comparative tests of mobile applications for smartphones. The document was put into effect on October 1, 2018 for a period of 3 years. In 2021, the standard should be given the status of GOST R.
• State support measures
On July 22, 2020, the State Duma passed a law on tax maneuver in the IT industry, according to which from 2021 the income tax of Indian technology companies will be reduced from 20% to 3%, and the insurance premium rate from 14% to 7,6%.
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1.4.5. Conclusions about the influence of factors on the market
Let's present the results of the analysis of factors influencing the market in the form of a STEP-analysis table.
Table 2. STEP analysis of factors influencing the mobile application market
Thus, at the moment, the Indian mobile application market is experiencing a generally positive influence of medium-strength environmental factors.
1.5. Risk Analysis
Let's consider the main risks that may affect the company's activities in the mobile applications market, its operating and financial results.
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1.6. Structure of the mobile application market
Diagram 7. Structure of the mobile application market by category, 2020, %
Mobile applications of the ""Media and entertainment"" category are the most popular among Indian users - the share of the segment is ...%. This category includes games, social networks, music players, online cinemas, etc. As a result of the spread of coronavirus infection, users began to spend more time at home, so the smartphone has become the main means of entertainment and communication.
Chapter 2. Analysis of mobile applications of TOP-20 competitors
2.1. The level of competition in the market
The mobile application market is one of the most dynamic not only in India but also in the world, the number of developments in various fields is increasing every year, as companies understand the need to move their business to the online sphere. The coronavirus pandemic has been one of the main factors that has accelerated this trend in 2020.
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2.2. Major Players
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Thus, the TOP-20 companies under consideration together occupy a share of … % of the total volume of the Indian mobile application market.
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2.3. Description, pros and cons of mobile applications of the largest Indian retailers and technology leaders
Let's consider the positive and negative aspects of the TOP-20 mobile applications for each area under consideration. The pros and cons are based on user reviews in the App Store and Google Play.
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Mobile apps in each category tend to have similar functionality and features. At the same time, some mobile applications are distinguished by the introduction of new technologies.
2.5. Availability on the market, cost, interaction format (subscription / sale, etc.)
All mobile applications of the five categories under consideration are free.
The main sources of income for the analyzed applications are:
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2.6. Analysis of sales channels and marketing activities of the largest competitors
The mobile application is a new channel for effective interaction with customers and the target audience.
Attracting new users of the mobile application is carried out through two main channels: direct sales and through intermediaries.
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All of the competitors under consideration have a website with links to download a mobile application on Google Play and the App Store. Consider traffic sources for TOP-20 competitor sites in five categories according to the following criteria:
Direct - direct visits to the site when users went directly to the URL or, for example, the site was bookmarked.
Referral - traffic that users clicked on a link from another site, excluding major search engines.
Search - transitions through paid / free search queries.
Social - transitions from social networks.
Email - traffic from email messages.
Display - media traffic (including contextual advertising).
Chart 10. Traffic sources for competitor sites in five categories for January 2021, %
Chapter 3. Consumption Analysis
3.1. Market saturation
The active growth of the mobile device market contributes to the development of the mobile application market. The number of developers, available applications, and the number of downloads of them is increasing every year.
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The growth of non-cash transactions is accelerating, the reorientation of the population to the use of mobile payments using smartphones, contributes to the development and improvement of the market for financial mobile applications.
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Thus, the considered factors create prerequisites for the further development of the mobile applications market in India.
3.2. Key consumer trends in India. Changes in user behavior of mobile application clients
The coronavirus pandemic has greatly affected the use of mobile applications. Staying at home, people switched to solving everyday tasks through smartphones. Many app categories — education, e-commerce, health and fitness, social media, and streaming services — have increased their audience.
Among the main consumer trends and changes in the user behavior of mobile application customers are the following:
Because smartphones enable immediate action, consumers use their gadgets whenever they need to know, find, make, or buy something. As a result, people's expectation of immediate satisfaction of any desire is stronger than ever.
When a consumer uses a smartphone to solve any issue, he often lacks patience, because modern people do not have time to search for something or understand a mobile application for a long time.
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Part 4. Forecasts and conclusions
4.3 Market forecast until 2024
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List of diagrams
Diagram 1. Dynamics of the mobile applications market volume, 2017-2020, billion Rs.
Diagram 2. Dynamics of the population of India, as of January 1, 2010-2021, million people, %
Diagram 3. Dynamics of real disposable money income of the population of India, 2014-2020, % to the previous period
Chart 4. Internet audience in India, average monthly reach for February-November 2020, % of population
Chart 5. Sales of smartphones in India, 2014-2020, million units
Diagram 6. Dynamics of India's GDP, 2012-2020, % to the previous year
Diagram 7. Structure of the mobile application market by category, 2020, %
Chart 8. Shares of the largest competitors in the mobile app market by categories under consideration in 2020, %
Diagram 9. Number of companies represented in the TOP-5 social networks
Chart 10. Traffic sources for competitor sites in five categories for January 2021, %
Diagram 11. Forecast of the size of the mobile application market in 2021-2024, billion Rs.
List of tables
Table 1. Classification of mobile applications
Table 2. STEP analysis of factors influencing the mobile application market
Table 3. The main companies participating in the mobile applications market in five areas in 2020
Table 4. Comparative characteristics of the TOP-20 mobile applications
Table 5. Analysis of application capabilities in the category ""Banks""
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