Researched Amazing Facts about On-Demand Apps Economy
Written by Hemendra Singh on September 12, 2018
The app development market is increasing at rocket speed. Many startups are rising in this industry. Mobile apps occupy 54% of time spent on digital media. 6.6 million apps are present in the app store. Though popular types of apps are entertainment, music, games, social networking apps, messenger apps, there is one more name with increasing popularity called on-demand apps. On-demand apps economy market is taking a great pace with positive revenue.
There are 86.5 million Americans who have used an on-demand service. 10,293 billion US dollars were invested in the fourth quarter of the year 2017. There are various reasons why on-demand app development is getting so popular. The main reason is that these apps offer extreme ease to the end users.
Not just it is easy to use the on-demand app, but it also easily get real-time service at the doorstep. These apps can be about food delivery, grocery delivery, cab booking. Ola, Big Basket, Uber, Uber Eats, Urbanclap are the favourite on-demand apps. It is incredibly convenient for users to use on-demand apps.
Stats about On-Demand apps economy
#1 Investors are watching On-demand app industry:
Since the apps are so promising, many angel investors invest in such on-demand apps. On-Demand app development company can get the resources they need to grow further. In the year 2014 74 Billion US dollars were invested in the on-demand app market, and in the year 2017, the amount invested reached 10,293 Billion US dollars.
The significant number of fundings for on-demand app development is received from the Seed or Angel Investors.
#2 Increase in revenue:
As the number of investors is increasing, the on-demand apps economy is also increasing. Before a decade, these apps were just in the form of startups. However, now the market has expanded so much that the revenue has reached the sky.
This equation involves some users, time spent on these apps, review, ratings. Since the app is so easy to use and offers excellent real-time service, the revenue is increasing. The app is using mainly by millennials.
As per a report generate by BIA/Kelsey, the on-demand apps economy revenue was $22 billion in 2015, and it will reach $57 billion by the end of this year.
#3 Time spent on these on-demand apps:
Between 2016 and 2017, the number of on-demand users is increasing since users are spending more time on ordering/booking on-demand service app.
In line with the data collected by the National Technology Readiness Survey in the U.S., it was predicted that the sum total spending on the on-demand mobile app services would rise from $48 billion in 2016 to $75.7 billion in 2017.
U.S. consumer expenditures in in-demand apps economy
About the National Technology Readiness Survey (NTRS)
The NTRS has tracked technology behaviors in the U.S. since 1999.
Housing items, transportation, food delivery, etc. showed great hikes in on-demand apps. There are 56 million on-demand app users in the current year. Rockbridge estimates that this number will increase and reach 93 Million by the time we hit 2022.
#4 What impresses the users most:
There are various features of on-demand applications. It is essential to conduct a survey which indicates what feature is doing the best. So that app development company can work more on that feature and enhance the functionalities.
20% of users in the US have used on-demand industry in 2016. Now the number has increased to 34% by the end of 2017. The feature that allows users to find service online on the app is the most loved feature.
70% of users stated that this is the most useful feature. 62% of users love online paying and tracking the order or delivery person feature. It is easy to book and track the service delivery person.
#5 Type of users of on-demand mobile apps:
Through a survey conducted by research company, Rockbridge found that most of the users belong to the urban areas. From the total percentage of users of on-demand apps, 59% of the on-demand users are male.
The highest number of users falls in millennials category.
55% of users are between 25 – 44 years age group.
54% of users live in the suburb, and 18% reside in the inner city.
The annual income of 68% users is around $50,000, whereas 47% belonged to a household income of $75,000 minimum. 45% of users are educated.
#6 Early Adopter Class of Users:
What is the meaning of early adopter? These are the people who are tech-savvy who comes under “techno-ready” segment and has a fear of missing out. These people keep an eye on what is new in the technology world and want to try everything new. There were 41% of early adopters of on-demand apps in the year 2017.
The on-demand app development market is growing day by day and these are the stats proving so.
My name is Hemendra Singh. I am Managing Director and co-founder of The NineHertz, a Mobile App Development Company. I am having a keen interest in the latest trends and technologies that are emerging in different domains. Being an entrepreneur in the field of IT sector, it becomes my responsibility to aid my audience with the knowledge of latest trends in the market.