App Analytics Market by Offering, Type (Mobile Apps and Web Apps), Application (Advertising & Marketing Analytics, App Performance & Operations Management, Conversion Tracking, User Analytics), Vertical and Region - Global Forecast to 2028
App Analytics Market - Industry Trends & Forecast
The global App Analytics Market is estimated to be worth USD 6.3 billion in 2023. It is projected to reach USD 15.7 billion by 2028 at a CAGR of 20.2% during the forecast period. The app analytics is expected to grow at a significant rate, owing to the implementation of digital transformation strategies, deeper smartphone penetration, increasing number of mobile apps and use of apps for advertising and marketing of businesses, heavy funding by the investors, several government initiatives, and recent market developments (partnerships, mergers, and acquisitions) in the market.
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App Analytics Market Growth Dynamics
Driver: Increase in use of apps for mobile advertising
With the augmentation of the internet and mobile phones, various social media platforms have virtually economized technology. According to a report by Data.ai, advertising represents more than two-thirds of the USD 500 billion mobile app economy, with USD 336 billion (67%) coming from advertising and USD 167 billion (33%) coming from in-app purchases. Hence, the market for mobile advertising is expected to grow significantly. Organizations are spending more on mobile apps to track user activities. Despite regulatory restrictions and tightening budgets, the mobile advertising market remains strong, with ad spending driving USD 2 out of every USD 3 spent on mobile, according to Data.ai’s latest findings.
Restraint: Integration and implementation complexities
Integrating app analytics tools with existing app infrastructure and workflows can be a complex and time-consuming process. Organizations often encounter difficulties when trying to implement and configure app analytics solutions, especially when dealing with legacy systems or multiple third-party integrations. Technical complexities, customization requirements, and compatibility issues with existing app development frameworks can hinder the seamless integration of analytics tools. This can require substantial effort and expertise from development teams, leading to delays in implementation and potentially impacting time-to-market for app analytics initiatives. Moreover, organizations may face challenges in aligning data collection methodologies and tagging mechanisms across different platforms, making it difficult to consolidate and analyze data effectively.
Opportunity: Rise in efforts to enhance customer experience
The growing demand for real-time analytics presents a significant opportunity for the app analytics market. Businesses across various industries are recognizing the value of immediate insights and actionable data to drive their decision-making processes. Real-time app analytics solutions enable businesses to track and monitor user behavior, app performance, and engagement metrics in real time, empowering them to make timely interventions and optimize app experiences. Real-time analytics also provides businesses with a competitive edge by allowing them to respond quickly to changing user needs and market trends.
Challenge: Highly fragmented app ecosystem poses a significant challenge for market
The fragmented app ecosystem poses a significant challenge for the app analytics market. The app ecosystem is characterized by a wide range of operating systems, platforms, and devices, each with its own unique features, policies, and limitations. This fragmentation creates complexities for app analytics providers in terms of compatibility, data consistency, and comprehensive insights. The diverse array of operating systems, such as iOS, Android, and Windows, each have their own rules and regulations regarding data collection and analytics.
App Analytics Market Ecosystem
The app analytics market report covers market ecosystem which comprises software providers, service providers, Software Development Kit (SDK) providers, and regulators.
By vertical, BFSI segment accounts for the largest market size during the forecast period
App analytics in the Banking, Financial Services, and Insurance (BFSI) vertical refers to the application of app analytics specifically tailored to the unique needs and requirements of the financial industry. It involves tracking and analyzing user behavior, engagement, and transactions within mobile banking, investment, insurance, and other financial applications. App analytics in the BFSI vertical provides valuable insights into user interactions, customer journeys, and app performance metrics, allowing financial institutions to optimize their mobile app experiences and drive customer satisfaction.
By type, web apps segment is projected to grow at the highest CAGR during the forecast period
Web apps offer a flexible and accessible approach to delivering services and functionality to users across different devices and platforms. They are particularly suitable for content-based applications, service-oriented apps, and scenarios where frequent app updates or cross-platform compatibility are crucial. Web analytics also helps businesses evaluate the effectiveness of marketing campaigns, measure user engagement, and identify areas for improvement. It provides valuable data for eCommerce optimization, allowing businesses to track user journeys, identify drop-off points, and optimize the purchase funnel.
North America to account for the largest market size during the forecast period
The North American market is highly advanced in terms of mobile technology adoption, with a large user base and a thriving app ecosystem. The North American app analytics market growth is fueled by technological advancements across major verticals, such as BFSI; retail; media & entertainment; logistics, travel, and transportation; and telecom & IT. For the advancement of industrial digitization, the US government started many initiative programs and campaigns. Some of the leading providers of app analytics solutions in North America include Google Analytics for Apps, Adobe Analytics and Mixpanel.
Key Market Players
The major app analytics software and service providers include Google (US), Microsoft (US), AWS (US), IBM (US), Adobe (US), SAP SE (Germany), Amplitude (US), Upland Software (US), Mixpanel (US) and Kochava (US). These companies have used both organic and inorganic growth strategies such as product launches, acquisitions, and partne
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Report Metrics |
Details |
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Market size value in 2023 |
USD 6.3 billion |
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Revenue forecast for 2028 |
USD 15.7 billion |
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Growth Rate |
20.2% CAGR |
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Market size available for years |
2018–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
USD Billion |
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Segments covered |
Offering, Type, Application, Vertical, and Region |
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Geographies covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Key Market Drivers |
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Key Market Opportunities |
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Companies covered |
Google (US), Microsoft (US), AWS (US), IBM (US), Adobe (US), SAP SE (Germany), Amplitude (US), Upland Software (US), Mixpanel (US), Kochava (US), Flurry (US), UXCam (US), Qonversion (US), Taplytics (Canada), ContentSquare (France), Countly (England), AppDynamics (US), Smartlook (Czech Republic), AppFollow (Finland), CleverTap (US), Singular (US), Heap (US), Data.ai (US), Pendo.io (US), and Alchemer LLC (US). |
This research report categorizes the App analytics market based on Offering, Type, Application, Vertical, and Region.
By Offering:
-
Software
- Android
- iOS
- Windows
- Services
By Type:
- Mobile Apps
- Web Apps
By Application:
- Advertising and Marketing Analytics
- App performance and Operations management
- Conversion tracking
- User Analytics
- Revenue management
- Other Applications
By Vertical:
- BFSI
- Retail and Ecommerce
- Telecom & IT
- Healthcare and Life Sciences
- Media & Entertainment
- Transportations, and Logistics
- Gaming
- Others
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Recent Developments:
- In June 2023, Cisco acquired Smartlook, a provider of user behavior analytics solutions. This acquisition was aimed at enhancing Cisco’s offerings in the application performance monitoring space, particularly for Cisco AppDynamics and Cisco Full Stack Observability.
- In April 2023, Amplitude released new features to help teams collaborate more efficiently, get better insights into user conversion, and track the impact of marketing campaigns. These features included Space edit access, updated funnel charts, and Campaign Reporting.
- In June 2022, Google introduced new product updates to Firebase Crashlytics, including improved Flutter app crash reporting, increased developer productivity, filtering crashes, and unity crash handling.
- In, January 2021, Upland Software acquired Localytics, a leading provider of mobile app personalization and analytics solutions. This acquisition would allow Upland to provide its customers with a more comprehensive and sophisticated mobile app experience. Localytics’ technology will be integrated into Upland’s Customer Experience Management (CXM) Cloud, which will enable businesses to deliver personalized app experiences across all digital channels.
Frequently Asked Questions (FAQ):
What is App analytics?
App analytics refers to the process of collecting, measuring, and analyzing data related to the usage and performance of a mobile application. It provides valuable insights into user behavior, engagement, and overall app performance, helping app developers and businesses make informed decisions to enhance their app’s success.
Which region is expected to hold the highest share in the app analytics market?
North America is expected to dominate the app analytics market in 2028. The growing reliance on mobile apps for various activities such as communication, entertainment, shopping, and productivity fuels the demand for app analytics in North America.
Which are key verticals adopting app analytics software and services?
Key verticals adopting app analytics software and services include BFSI, Retail & eCommerce, Healthcare & Lifesciences, Telecom & IT, Transportation & Logistics, Media & Entertainment, Gaming and others verticals, which comprise Education and Travel & Hospitality.
Which are the key drivers supporting the market growth for app analytics?
The key drivers supporting the market growth for app analytics include the implementation of digital transformation strategies, deeper smartphone penetration and increasing number of mobile apps and use of apps for mobile advertising.
Who are the key vendors in the market for app analytics?
The key vendors in the global App analytics market include are Google (US), Microsoft (US), AWS (US), IBM (US), Adobe (US), SAP SE (Germany), Amplitude (US), Upland Software (US), Mixpanel (US), Kochava (US), Flurry (US), UXCam (US), Qonversion (US), Taplytics (Canada), ContentSquare (France), Countly (England), AppDynamics (US), Smartlook (Czech Republic), AppFollow (Finland), CleverTap (US), Singular (US), Heap (US), Data.ai (US), Pendo.io (US), and Alchemer LLC (US).
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The research methodology for the global app analytics market report involved the use of extensive secondary sources and directories, as well as various reputed open-source databases, to identify and collect information useful for this technical and market-oriented study. In-depth interviews were conducted with various primary respondents, including key opinion leaders, subject matter experts, high-level executives of multiple companies offering app analytics offerings, and industry consultants to obtain and verify critical qualitative and quantitative information, as well as assess the market prospects and industry trends.
Secondary Research
During the secondary research phase, multiple secondary sources were consulted to identify and gather information for this study. These sources encompassed a range of materials such as annual reports, press releases, investor presentations, whitepapers, technology journals, certified publications, articles authored by recognized experts, directories, and databases. The primary focus of the secondary research was to extract essential details regarding the value chain of the global app analytics industry, the complete spectrum of key players, market categorizations, and industry trends down to the most granular level, regional markets, as well as significant developments from both market and technology perspectives.
Primary Research
For the primary research phase of this report on the global app analytics market, a range of primary sources from both the demand and supply sides were interviewed to acquire qualitative and quantitative information. On the supply side, industry experts including CEOs, VPs, marketing directors, technology and innovation directors, and other key executives from prominent companies and organizations operating in the global app analytics market were consulted. Following comprehensive market engineering, which involved calculations for market statistics, breakdown, size estimation, forecasting, and data triangulation, extensive primary research was conducted. The purpose was to gather information, verify and validate the estimated figures derived from our analysis. Primary research was also carried out to identify segmentation types, industry trends, key players, the competitive landscape of the global app analytics market, as well as key market dynamics such as drivers, restraints, opportunities, industry trends, and strategies employed by key players.
The following is the breakup of primary profiles:
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App Analytics Market Size Estimation
The market engineering process was conducted comprehensively, employing both top-down and bottom-up approaches. Multiple data triangulation methods were utilized to estimate and forecast the market for the various segments outlined in the report. Extensive qualitative and quantitative analyses were carried out as part of the market engineering process to provide key information and insights throughout the report. The market size for the global app analytics market was determined by calculating the revenues generated from major regions, namely North America, Europe, APAC, MEA, and Latin America. This calculation involved studying the annual and financial reports of top market players and conducting in-depth interviews with industry leaders such as CEOs, VPs, directors, and marketing executives to gather key insights. All percentage shares, splits, and breakdowns presented in the report were derived from secondary sources and validated through primary sources. Every possible parameter influencing the markets covered in this research study was carefully considered, thoroughly examined through primary research, and analyzed to obtain the final quantitative and qualitative data. The consolidated data, incorporating detailed inputs and analysis from MarketsandMarkets, is presented in this report to provide a comprehensive view of the market.
Market Size Estimation Methodology-Bottom-up approach
In the bottom-up approach, the adoption rate of app analytics software and services among different end users in major countries with respect to their regions contributing the most to the market share was identified. For cross-validation, the adoption of app analytics software and services among industries, along with different use cases with respect to their regions, was identified and extrapolated. Weightage was given to use cases identified in different regions for the market size calculation
Market Size Estimation Methodology-Top-down approach
In the top-down approach, an exhaustive list of all the vendors offering app analytics was prepared. The revenue contribution of the market vendors was estimated through annual reports, press releases, funding, investor presentations, paid databases, and primary interviews. Each vendor’s offerings were evaluated based on the breadth of software and service offerings and verticals. The aggregate of all the revenues of the companies was extrapolated to reach the overall market size.
Top-down and Bottom-up approaches
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Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segmentation.
Market Definition
According to Avi Networks, application (app) analytics is the process of capturing, analyzing, and delivering meaningful insights from application usage and metrics within application delivery.
According to MarketsandMarkets, app analytics refers to the process of collecting, measuring, and analyzing data generated by mobile applications (apps) to gain insights into user behavior, app performance, and overall app usage. It involves tracking and interpreting various metrics and data points to understand how users engage with an app, identify areas for improvement, and make informed decisions to optimize the app’s performance and user experience.
Key Stakeholders
- App analytics software providers
- App analytics service providers
- Regulatory agencies
- Government entities
Report Objectives
- To define, describe, and forecast the global app analytics market, based on offering (software and service), types, applications, verticals, and regions, with respect to individual growth trends and contributions toward the overall market
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing market growth
- To analyze subsegments with respect to individual growth trends, prospects, and contributions to the total market
- To analyze opportunities for stakeholders and provide the competitive landscape of the market
- To forecast the revenue of the market segments with respect to all the five major regions, namely, North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America
- To profile the key players and comprehensively analyze the recent developments and their positioning related to the app analytics market
- To analyze competitive developments, such as mergers & acquisitions, product developments, and research & development (R&D) activities, in the market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company
Geographic Analysis as per Feasibility
- Further breakup of the North American market for App analytics
- Further breakup of the European market for App analytics
- Further breakup of the Asia Pacific market for App analytics
- Further breakup of the Middle East & Africa market for App analytics
- Further breakup of the Latin America market for App analytics
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in App Analytics Market