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Mobile Device Apps: Inc Impact of COVID-19 - UK - October 2020

OVERVIEW
Key issues covered in this Report
COVID-19: market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
COVID-19 has a positive impact on the market as people turn to tech
Figure 1: Short, medium and long-term impact of COVID-19 on the mobile apps category, September 2020
The market
Market size and forecast
Figure 2: Consumer spend on App Store and Google Play Store apps and games, 2014-19 and H1 2020
Freemium still the dominant revenue model
Figure 3: Market size for mobile apps, 2015-25, prepared on 7 October 2020
Companies and brands
Wearable technology can be a significant platform for mobile apps
Homeworking and virtual socialising apps soar
Fitness apps’ COVID spike likely to be sustained longer term
TikTok fashion month aims to make it a go-to hub for young fashion obsessives
News app Curio raises $9 million in funding for growth plans 
Niantic eyes 5G AR alliance to push mobile gaming experience
The consumer 
Three in 10 would not download the NHS COVID-19 tracing app
Figure 4: Attitudes towards downloading COVID-19 contact tracing app, July 2020
Decrease in weekly download of mobile apps
Figure 5: Download frequency of mobile apps amongst consumers, 2019 and 2020
Messaging and social media are used daily
Figure 6: Frequency of use of mobile app categories, July 2020
Organic search and recommendations fuel discovery
Figure 7: Methods of app discovery, July 2020
Smartphones trump tablets for app installs
Figure 8: Number of apps installed on smartphones and tablets, July 2020
Consumers still prefer accessing websites over dedicated apps
Instant apps can cater to consumers’ desire for convenience
Figure 9: Attitudes towards mobile apps, July 2020
ISSUES AND INSIGHTS
COVID-stimulated boost can provide structural shift for mobile apps market
Instant apps can create valuable moments of convenience for consumers and aid discovery
THE MARKET – KEY TAKEAWAYS
2020 sees sharp increase in consumer spend on apps and games
Value of mobile apps market to increase by 43% in 2020
Boost to retail and productivity apps during COVID pandemic
Technological innovations will spur longer-term mobile apps’ growth
Wearable technology can be a significant platform for mobile apps
MARKET SIZE AND FORECAST
COVID-19 has a positive impact on the market as people turn to tech
Figure 10: Short, medium and long-term impact of COVID-19 on the mobile apps category, September 2020
2020 sees sharp increase in consumer spend on apps and games
Figure 11: Consumer spend on App Store and Google Play Store apps and games, 2014-19 and H1 2020
Freemium still the dominant revenue model
Figure 12: Consumer spend on App Store and Google Play Store apps and games, 2018-20
Value of mobile apps market to increase by more than 40% in 2020
Technological innovations can cement mobile apps’ growth
Figure 13: Market size for mobile apps, 2015-25, prepared on 7 October 2020
Figure 14: Gross mobile app revenue for App Store and Google Play Store, 2015-25
Market drivers and assumptions
Figure 15: Key drivers affecting Mintel’s market forecast, 2015-25, prepared on 7 October 2020
Learnings from the last recession
Forecast methodology
MARKET DRIVERS
Retail apps see spike during COVID pandemic
Hyper-casual gaming titles still drive the market
Figure 16: Google Play overall rankings, by revenue, H1 2020
Figure 17: OS App Store overall rankings, by revenue, H1 2020
Education, streaming and gaming apps featured prominently in September
Figure 18: Top apps on iOS, UK, overall, 16 September 2020
Figure 19: Top apps on Google Play, UK, overall, 16 September 2020
Wearable technology can be a significant platform for mobile apps
Money management apps can help hard-hit households manage finances
Fitness apps’ COVID spike likely to be sustained longer term
Figure 20: Use of online health and fitness resources, June 2020
Homeworking and virtual socialising apps soar
Voice-first apps can increase productivity toolkit
COMPANIES AND BRANDS – KEY TAKEAWAYS
NHS COVID-19 contact tracing apps launch across the UK
TikTok aims to increase commerce opportunities
Audio news apps raise funding as news consumption moves away from print
Niantic eyes 5G AR alliance to push mobile gaming experience
LAUNCH ACTIVITY AND INNOVATION
Google Maps gets overhaul to give richer environment detail
Celebrity shout-out app Cameo sees spike in lockdown as artists look to plug revenue gaps
NHS COVID-19 contact tracing app launches on 24 September in England and Wales
Figure 21: Level of adoption of COVID-19 contact tracing app and impact on daily cases, September 2020
TikTok fashion month aims to make it a go-to hub for young fashion obsessives
News App Curio raises $9 million in funding for growth plans 
Sainsbury’s adapts Nectar rewards app to encourage healthy eating habits
Niantic eyes 5G AR alliance to push mobile gaming experience
“Astro Tech” apps see significant rise in investment from tech entrepreneurs
Government approves early-years learning apps to help improve literacy
ADVERTISING AND MARKETING ACTIVITY
Advertising spend on mobile apps hits £200 million in 2019
Figure 22: Total above-the-line, online display and direct mail advertising expenditure on mobile apps, 2019
TV still the main avenue for mobile apps advertising
Figure 23: Total advertising expenditure on mobile apps, by media type, 2019
Nielsen Ad Intel coverage
THE CONSUMER – KEY TAKEAWAYS
Three in 10 would not download the NHS COVID-19 tracing app
Decrease in weekly download of mobile apps
Messaging and social media are used daily
Smartphones trump tablets for app installs
Household and demographic circumstance can fuel app discovery
Consumers have a preference for accessing websites over dedicated apps
IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Consumers turn to productivity, social and entertainment apps to fill lockdown void
Apps can plug the gap for mindful behaviours 
Three in 10 would not download the NHS COVID-19 tracing app
Figure 24: Attitudes towards downloading COVID-19 contact tracing app, July 2020
APP USAGE ON MOBILE DEVICES
Decrease in weekly download of mobile apps
Under-25s more likely to download regularly
Figure 25: Download frequency of mobile apps amongst consumers, 2019 and 2020
Messaging and social media are used daily
Figure 26: Frequency of use of mobile app categories, July 2020
Lapsed use of apps dominated by gaming and dating
Figure 27: Use of apps in the past, by category, July 2020
NUMBER OF APPS CONSUMERS HAVE
Smartphones trump tablets for app installs
Figure 28: Number of apps installed on smartphones and tablets, July 2020
Add-on or supplementary apps can appeal to high-volume users
Figure 29: Daily users of app categories, by number of apps installed on smartphone, July 2020
DISCOVERY OF MOBILE APPS
Organic search and recommendations fuel discovery
Work-related apps make the self-employed key targets
App makers can cater to the singleton’s curiosity
Older females value personal recommendations
Social discovery of apps appeals to younger females
Figure 30: Methods of app discovery, July 2020
Household circumstance can fuel app discovery
Figure 31: Repertoire of sources for app discovery, July 2020
Figure 32: Method of discovery of mobile apps, by repertoire of sources of app discovery, July 2020
ATTITUDES TOWARDS MOBILE APPS
Consumers still prefer accessing websites over dedicated apps
Instant apps can cater to consumers’ desire for convenience
Enhancing impulse purchasing behaviour
Experience is everything for the consumer 
Choice and timing can help make advertising feel less intrusive
Figure 33: Attitudes towards mobile apps, July 2020
Virtual tours can be a hit with urban families
Figure 34: Mobile device apps – CHAID – Tree output, July 2020
Figure 35: Attitudes towards mobile device apps– CHAID – Table output, July 2020
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology

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