Apple announced today that the App Store ecosystem generated $1.1 trillion in developer billings and sales in 2022. According to an independent study by economists from Analysis Group, developers have a strong track record of growth and resilience. The App Store offers opportunities for developers around the world, with more than 90 percent of the billings and sales going to developers and businesses of all sizes, without any commission paid to Apple. The Progressive Policy Institute also found that the iOS app economy now supports over 4.8 million jobs in the U.S. and Europe, with approximately 2.4 million jobs in each region.
Developers on the App Store have a variety of options to monetize their apps and create thriving businesses. Analysis Group economists estimate that in the previous year, App Store developers generated $910 billion in total billings and sales from physical goods and services, $109 billion from in-app advertising, and $104 billion for digital goods and services.
Tim Cook, Apple’s CEO, said:
“We’ve never been more hopeful about — or more inspired by — the incredible community of developers around the world. As this report shows, the App Store is a vibrant, innovative marketplace where opportunity thrives, and we’re as committed as ever to investing in developers’ success and the app economy’s future.”
The Analysis Group study examines the factors that drive the growth of the App Store ecosystem, including increasing demand for sectors such as travel and ride-hailing, and strong growth in advertising spend in apps such as social media and retail apps.
Developer billings and sales rose by 27% between 2019 and 2020, by 27% between 2020 and 2021, and by 29% between 2021 and 2022. Small developers, in particular, experienced significant success on the App Store by increasing their revenue by 71% between 2020 and 2022. The economists at the Analysis Group consider these growth rates as positive indicators consistent with a dynamic, innovative, and competitive marketplace.
Overall, since 2019, U.S. developers’ billings and sales have increased by more than 80%. In Europe, developers’ billings and sales increased by an above-average 116% since 2019.
Food and grocery sales were among the app categories that grew the fastest. Since 2019, sales for iOS app-based food delivery and pickup more than doubled, and grocery sales more than tripled. Enterprise apps have also grown in popularity among companies worldwide in recent years. In 2022, these apps were one of the fastest-growing digital goods and services categories in Analysis Group’s estimate of billings and sales. The app-based entertainment category saw the highest growth in digital goods and services, as notable trends like the creator economy have emerged in recent years, along with the prominence of apps that support this area.
All told, iOS developers have earned more than $320 billion on the App Store from 2008 to 2022. The Analysis Group study found that iOS users have downloaded apps more than 370 billion times from 2008 to 2022. And today, the App Store has more than 123 times as many apps — nearly 1.8 million — to choose from, compared to the thousands available on the App Store at the end of 2008.