The app economy in the UK is the biggest in Europe and set to generate £4bn revenue by the end of the year, cementing the country’s position as the leading tech hub outside of the US.
The UK generates more than a third of app revenue produced across Europe and employs just under a fifth of developers working across the continent, according to research from Google and Vision Mobile.
By 2020, the industry in the UK is expected to reach £15bn and exceed £30bn by 2025, growing on average 22 per cent a year.
The strength of the app economy is credited to the high rate of smartphone penetration and high levels of app consumption in the UK, however the UK also generates more revenue from high-growth markets outside Europe than other European developers.
London dominates with the highest number of app companies in the country, followed by Brighton, Reading, Guildford and Birmingham.
The report predicts that growth in the app economy will be driven by six factors:
- An increase in Enterprise and B2B apps as mobile becomes more integrated with work and business.
- Strong growth in the fintech sector in London and the UK will translate in to related app industry revenues.
- The rise in mobile commerce- the number of people making purchases online using smartphones or tablets.
- Strong growth in the so-called Internet of Things largely using apps.
- The status of the UK as a centre for app development attracting new startups.
- The app-ification of services- the imove of traditional physical services such as retail, entertainment and ticketing to online.