When we look at the app store today, it could be believed that new ideas can no longer squeeze themselves inside. The Apple App Store and Google Play Store both now contain millions of apps across various categories—exercise, banking, games, food delivery, and more. For those who wish to create their own app, the big question is: Is there room left in the market for us?
The brief answer is: it’s not so simple. The app market is tough, but chances for innovation still exist, even though they might feel out of reach at times. This article will explore whether we can truly call the app market obsolete, offer practical advice on how to stand out amidst the challenges, and provide clear pointers to success, whether you make your living as an entrepreneur or developer.
Truly Saturated: The Market Environment Today?
Before judging the app market, we need to examine what saturation really means. If there are so many products or services available that the demand for more is exhausted, this might indicate a saturated market. So, on the face of things, app stores fit this description perfectly. There are nearly 1.96 million apps in the Apple App Store and 2.87 million apps in Google Play (as of 2023). It’s a fight to survive.
However, a closer look shows that amidst this crowd, there is still room for innovation. For example, new technologies such as AI, blockchain, and augmented reality (AR) are opening up fresh opportunities. Additionally:
- Emerging Trends: New technologies like AI, blockchain, and AR are creating new avenues for growth.
- Growth of Use: Smartphones continue to be adopted and used for apps. This trend is likely to grow, especially in emerging markets like Southeast Asia, Africa, and South America.
While the app market may not be as open as it was a decade ago, there is still substantial space for an entrepreneur to create something that can stand out. Learn more about Mobile App Marketing.
Why the App Market Feels Saturated
Being aware of the factors that make the app market feel saturated is the first step toward breaking free of this mindset. Here are the major factors contributing to these feelings:
- Large Number of Apps: With millions of apps available, many new apps struggle to compete. App store search algorithms often prioritize big-name apps, leaving indie developers and newcomers out of sight.
- User Fatigue: Users are more selective about the apps they download. Studies show that 21% of users abandon an app after just one use. This increased scrutiny makes it harder for new apps to gain user trust and retention.
- Rising Cost of Acquisition: The cost of acquiring quality users has steadily increased. The cost per install (CPI) now surpasses $3 in many markets, making it increasingly hard for startups to compete.
While these challenges are real, understanding them can help developers differentiate their apps and create a solid strategy for success.
How to Succeed in a Competitive App Market
Despite these challenges, there are still plenty of opportunities for those who think a little differently. Here’s how to succeed:
1. Find and Dominate a Niche
Instead of competing in saturated mainstream categories like social networking or puzzle games, focus on a specific niche audience. Niche apps solve targeted problems and often face less direct competition.
- For example, instead of a general-purpose “fitness” app, design one specifically for new mothers trying to get back into exercise after childbirth.
- Alternatively, create an app for organizing both client and business expenses, specifically aimed at freelance entrepreneurs.
Focusing on a smaller audience can lead to higher user engagement and loyalty.
2. Prioritize User Experience
In an app-saturated world, users flock to apps that look good and make them feel good. PricewaterhouseCoopers found that 32% of customers will abandon a brand they love after just one bad experience. To avoid this:
- Ensure intuitive design: The app should be easy to navigate.
- Optimize fast load times: Users won’t tolerate slow apps.
- Offer good UX: Positive experiences keep users coming back.
3. Master the Latest Technologies
Leverage new technologies to differentiate your app from traditional competitors:
- AI and Machine Learning: Use recommendation algorithms or natural language processing to create personalized experiences.
- AR (Augmented Reality): For example, Pokémon GO used AR to make users feel like they were part of the game.
4. Develop a Sound Marketing Strategy
Don’t rely solely on app store algorithms for downloads. Successful apps use creative and data-driven marketing strategies such as:
- Pre-launch campaigns: Create buzz with teasers, sneak peeks, and beta invites.
- Social media advertising: Target users where they already spend their time.
- Referral programs: Reward existing users for sharing the app with discounts, in-app prizes, or free upgrades.
Marketing is an ongoing effort, so your skills need to evolve along with the growth of your app.
5. Monetize Wisely
Having an effective monetization strategy is crucial. Depending on the niche and audience, consider these models:
- Subscription: Offer a basic version for free, with upgrades available for a fee.
- Ads and Partnerships: For high-usage apps, in-app ads or sponsorships can be a reliable income stream.
- Freemium: Basic versions are free, but users can pay for enhanced features.
For example, Spotify uses a combination of freemium and subscription models, while budgeting apps like Mint rely on ads.
6. Focus on Retention, Not Just Downloads
User acquisition is expensive, but retention leads to long-term profit. To improve retention:
- Regular updates: Add new features based on user feedback.
- Push notifications: Send timely reminders to keep users engaged.
- Personalization: Provide tailored content and recommendations based on user behavior.
Apps like Duolingo have succeeded with high user retention rates by gamifying the learning process and allowing users to set custom goals.
Success Stories That Prove the App Market Isn’t Saturated
Here are a few success stories that show unique ideas, combined with strategic implementation, can still succeed:
- Plant Parent (Launched 2021): An app for plant owners with over 1 million downloads.
- Clubhouse (Surged 2020-2021): A platform for live audio conversations, seeing rapid growth during the pandemic.
- Calm (Launched 2012): A meditation app now worth more than $2 billion.
These examples demonstrate that innovation, when paired with smart strategies, can lead to success even in today’s crowded app market.
Why It’s Not Too Late to Be an App Developer
While competition is high, public demand for creative, niche-specific apps remains strong. Entrepreneurs who know their customers, use new technologies to build their products, and stay adaptable can still thrive. Don’t let the crowded app market discourage you—it’s still possible to create something unique and valuable. If you’re committed to delivering a great product and adapting to trends, there is plenty of opportunity to succeed.
