App - South Africa

South Africa

The App market in South Africa is expected to witness significant growth in the coming years.
According to projections, the total revenue in this market is estimated to reach US$465.40m in 2022.
This indicates a promising potential for the country's app industry.
Furthermore, the market is expected to exhibit a steady annual growth rate of 9.04% between 2022 and 2027.
As a result, the projected market volume is anticipated to reach US$712.40m by 2027.
This demonstrates the continuous expansion and development of the app market in South Africa.
Within the App market, in-app purchases (IAP) are projected to contribute significantly to the overall revenue.
It is estimated that IAP revenue will reach US$197.70m in 2022, reflecting the increasing popularity of in-app purchases among consumers.
Additionally, paid app revenue is also expected to contribute to the overall revenue, with a projected value of US$19.24m in 2022.
This highlights the willingness of users in South Africa to invest in paid applications.
Another significant revenue stream in the App market is advertising.
It is projected that advertising revenue will reach US$248.50m in 2022.
This indicates the growing importance of advertising within the app ecosystem in South Africa.
In terms of user engagement, the number of app downloads is projected to reach 864.70m downloads in 2022.
This signifies the increasing adoption and usage of mobile applications among the population.
Currently, the average revenue per download is expected to amount to US$0.54.
This metric provides insights into the monetization potential of each app download and serves as a key indicator for businesses operating within the App market.
When compared globally, it is noteworthy that in China generates the highest revenue in the App market, with an estimated value of US$162.90bn in 2022.
This underscores the dominance of the Chinese app industry on the global stage.
Overall, the projections for the App market in South Africa indicate a promising future, with substantial revenue growth and increasing user engagement.
The country has the potential to become a significant player in the global app industry.

Key regions: China, United States, Europe, Germany, Asia

Market

Region

Region comparison

Currency

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year in case market dynamics change.