App Store developers surpass $1 trillion sales milestone by 2022

App Store developers generated $1.1 trillion in 2022

The latest research conducted by Analysis Group economists provides valuable insights into the growth of Apple’s App Store ecosystem. In addition, the findings shed light on the evolution of this app marketplace over the years.

In 2022, the App Store ecosystem witnessed an achievement as developers collectively generated $1.1 trillion in invoices and sales. In addition, more than 90% of invoices and sales were earned solely by developers without any commission being paid to Apple.

App Store developers generated significant revenue in several categories in 2022. About $910 billion came from sales of physical goods and services, $109 billion from in-app advertising, and another $104 billion from digital goods and services.

Between 2019 and 2022, there were notable increases in developer billings and sales. Specifically, there was a 27% growth from 2019 to 2020, followed by another 27% growth from 2020 to 2021.

Estimated billings and sales facilitated by the App Store ecosystem by app category, 2019-2022

The growth rate further increased to 29% from 2021 to 2022. As a result, small developers experienced remarkable success in the App Store and surpassed more prominent developers by achieving an impressive 71% increase in profits between 2020 and 2022.

There has been a significant increase in billings and sales for US developers, with over 80% growth since 2019. Similarly, European developers witnessed an above-average 116% increase in their billings and sales since 2019.

The analysts view these growth rates as positive indicators, reflecting a thriving market characterized by dynamism, innovation and healthy competition.

The study found that developer billings and sales, powered by the App Store, grew in a variety of categories. For example, as lockdown measures eased in several regions during the Covid-19 pandemic, specific app categories, such as travel and ride-hailing, experienced a substantial resurgence in demand.

In particular, iOS travel app sales saw an impressive 84% increase in 2022, while ride hailing app sales saw a remarkable 45% increase.

The categories of food and grocery selling apps have also shown remarkable growth and emerged as one of the fastest growing industries. Since 2019, iOS app-based food delivery and takeout revenues have more than doubled, while grocery sales have tripled.

In addition, enterprise apps have become significantly more popular with companies around the world in recent years. Business apps stood out as one of the fastest growing digital goods and services categories in 2022, according to Analysis Group’s billing and sales estimate.

The app-based entertainment category experienced the highest growth in digital goods and services, driven by notable trends such as the creator economy and the emergence of supporting apps in this area.

Number of iOS apps at the end of 2008 and 2022 in specific App Store categories

In total, iOS developers have made more than $320 billion from the App Store between 2008 and 2022. Analysis Group’s research found that iOS users had downloaded apps more than 370 billion times during the same period.

The App Store offers an extensive selection of nearly 1.8 million apps, about 123 times more than the number of apps available at the end of 2008.

“We have never been more hopeful about – or more inspired by – the incredible community of developers around the world,” said Tim Cook, Apple’s CEO. “As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we are more committed than ever to investing in developer success and the future of the app economy.”