App boom in EU to result in €63 bln, 5 mln jobs

App developers in EU took in €17.5 billion in revenue in 2013, figure will increase to €63 billion by 2018, an EU report said.

App boom in EU to result in €63 bln, 5 mln jobs

World Bulletin / News Desk

App developers in the EU will increase their revenue to €63 billion by 2018, including the creation of 5 million new jobs according to a report presented in Brussels on Thursday.

The increase is to attributed to an app boom in the EU that saw developers increase their revenue to €17 billion in 2013, the report by GIGAOM for the European Commission said.

EU and North American developers each generate 42 percent of app revenues in crucial EU and US markets.

Developers have raised concerns about a skills gap, connectivity and fragmentation, which could put the app boom at risk.

The EU's app economy currently employs 1 million developers, with 800,000 people in marketing & support posts. The number of app developers in the workforce will amount to 2.7 million people in 2018, in addition to the 2.1 million who will be employed as support staff.

EU buyers and advertisers spent €6.1 billion on apps in 2013, 30 percent of the total global spending on apps. This will grow to €18.7 billion in 2018.

Consumer spending combined with advertising and contract work could lead to €63 billion in annual revenue for the app sector within five years.

Neelie Kroes, Vice-President of the European Commission, said, "In the face of increasing youth unemployment, these figures give me new hope. The app sector is one area of the digital economy where Europe can really lead. We have to address concerns about connectivity and fragmentation – yet another reason to complete the telecom single market."

It is widely believed that a single digital market of more than 500 million EU consumers has major potential for Europe's digital business and app developers.

According to technology experts’ estimates, 94.4 billion apps were downloaded globally in 2013.

Last Mod: 13 Şubat 2014, 15:10
Add Comment