The market for mobile app development services reached $US 20.5 billion in 2011

The development service market today is almost 3 times of the size of the application download market.

The market for mobile application development services, including application creation, management, distribution and extension services, has reached $US 20.5 billion in 2011. App development services became a mass market that has surpassed the app content market by a factor of 3.

$US 6.8 bn in app download vs. $US 20.5 bn in app development

In 2011 publishers created $US 6.8 billion in application download revenues.

Today most app project revenue is generated from “classical” app creation services (concept creation, design and coding). New service types like app libraries, white label solutions and multi platform app development tools have become more and more popular, but do not yet take a major share of the market.

Daily rates for app development vary

Prices for application development services vary significantly between regions. UK developers charge $US 626 per day whereas competitors from India charge, on average, $US 138 per working day.

App development partners using price as the main criteria for selection will not be lead to an optimal solution as most of the price differences are offset by the additional time needed by offshore app developers.

The Market for Mobile Application Development Services

For more information on the app developer industry see our research report, “The Market for Mobile Application Development Services (2010-2015) – Selling The Spades To The App Gold Diggers”. This report covers the dynamic market on 98 pages. It is written for app developers as a planning and benchmarking tool as well as for app publishers who wants to develop their sourcing strategy.

Please meet us at the M-Days in Frankfurt (1st and 2nd of February 2012) to discuss developments in the app market. To see the program click here: M-Days Program (in German).

This post currently has 17 responses.

  1. Magnus Jern says:

    I assume that the developer rates quoted here are pure time & material for freelance / consultants? This is not end-2-end mobile web development. The rates charged by MIG, AKQA, LBi, 2ergo, Grapple, Ustwo, etc (and us) in the UK for app development are considerably higher as the rates here would mean a negative margin for most agencies.

    What is the source for the rates?

    Magnus, CEO Golden Gekko

  2. Magnus Jern says:

    I meant this is not end-2-end mobile app development which most brands/agencies require.

  3. Ed Novicelli says:

    2012 will be exciting times. We are rolling out some great b2c apps for 2012. The next three years will be amazing and we look to see how Apple changes some of its policies to truly fine tune the apps.

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  7. sams says:


    Thank you four your nice writing on The market for mobile app development services reached $US 20.5 billion in 2011


  8. Sam says:

    The rates depends on geography. We have onsite and offsite rates. Our onsite rate is $59/hr and offsite is $34/hr.

  9. angela says:

    sorry I have just started to read up on mobiles in the development field, so my question will appear inappropriate with the level of the discussion. but maybe it can help also other “beginners”… may somebody explain me what the app content market is? i can not follow the thread of the article.
    thank you.

  10. George says:

    The figures are important, for sure. Yet is there any statistic on which are the sectors with the largest expenses? I am thinking on games, for example, but if there is any other it would be good to know it.

  11. cool post. very informative. Thanks and keep posting

  12. Parker says:

    The increase in demand for mobile apps can be attributed to better awareness among business owners about the benefits of having a mobile app to engage with mobile users. This demand is expected to see an upward trend in the years to come.

  13. Ralf-Gordon Jahns says:

    The prices for app development services vary significantly around the world. The prices per day shown in the report is based on a global benchmarking that included hundreds of app developers per region. They represent average prices, which means that there are app developers that charge more or less.

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  15. Nice sharing. Important information and news in your blog. This is not end-2-end mobile web development. This figures are important for all developers. The app development services very significantly around the world.

  16. Esfera says:

    Nice information i have read the Blog and gain to many new things about the Development services thanks for sharing.

  17. Useful stuff, As we know in web development sector mobile app or you can say android app is growing its market rapidly. I always like to read about such thinks and again collect you sharing about mobile app development services market results. Thanks for this update. Keep posting.

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