Impact Of COVID-19 On The App Development Industry

 

From start-ups to established companies, organization of every size is looking to capture this opportunity to cater to people through digital platforms in these difficult times. For example, mobile apps that have popped up during the pandemic are serving as a savior and a much-needed friend amid lockdowns and social exclusion.

 

 

With different on-demand apps, people can meet their everyday needs and keep their calm in these increasingly challenging times.  People's inclination towards the mobile app prospects that have emerged during the pandemic leads us to believe that COVID-19 has triggered a new wave of digitalization.

 

This wave of digitalization, along with the ongoing developments in the app development industry, has saved us from falling apart. Mobile apps have primarily helped keep everyone's schedule intact, as consumer behaviors, buying habits, and ways of socializing and working are undergoing significant transformation due to the ongoing disruption.

 

With mobile applications being available to everyone, people have been able to adjust to this new reality. The increasing digitalization enabled by smartphones and mobile applications has allowed us to make this adjustment using mediums such as messaging, online banking, healthcare, online retail, dating, digital payments, gaming, and e-learning apps. In short, mobile applications have more popular than ever due to strict circumstances of lockdown, shutdown, and quarantine.

 

In this research article, we will discuss all how the COVID-19 pandemic has impacted the app development industry from the impact on consumer and business mobile app popularity to the major apps being used during the pandemic including the impact on the mobile usage and more.

 

 

For certain companies that are dependent on in-person labor force and that conduct their business in the same way, the 'social exclusion' phenomenon is a catastrophic occurrence. And then others view it as an opportunity for exponential growth and the creation of new business lines.

 

As the curve of coronavirus infections has started to shift upwards, entire organizations have started moving to remote operations. Many sectors, including retail tourism, and air travel have significantly altered their business models to mitigate the effects of the COVID-19 pandemic. The following are some statistics from Apptopia - a company that provides information and intelligence related to app development—that show the impact of COVID-19 on app use and download across various industries.

 

 

While the retail sector has been hit hard by the COVID-19 pandemic, the impact is softened by the delivery service options. Downloads of delivery apps for U.S. grocery stores, as well as, businesses with packaged food and essential home products, have substantially increased.

 

Three major examples of this are Shipt, Walmart Grocery, and Instacart that have experience 124%, 160%, and 218% increase in average daily downloads respectively. Target has already witnessed an increase in the daily downloads of its app. The following are some statistics showing the growth in app downloads of businesses offering food, drink, and other essential items of daily use.

 

Although the graph above covers the period from Jan 22 to March 20 in the United States, the actual counting of daily downloads of the Walmart Grocery, Instacart, and Ship grocery deliver apps begin from Feb 1 when the total number of coronavirus cases in the U.S was just 8.

 

From the above graph from Apptopia, we find that, on Feb 1, when the total coronaviruses cases were less than ten, 5648 downloads of the Shipt app were made. On the same day, we saw 12, 312 downloads of the Instacart app, and 26,046 downloads of the Walmart Grocery app.

 

A month and a half later this number has increased drastically. On March 20, when the total number of COVID-19 cases in the U.S had exceeded 15000, the total downloads of the Shipt app were over 10,000. Instacart and Walmart Grocery experienced an even bigger increase, with 53,292 and 76,823 downloads on March 20 respectively.

 

In addition to Instacart, Walmart Grocery, and Shipt, Target also saw an increase in the daily downloads of its mobile application. The following is a graph illustrating this:

 

 

(Number of daily downloads of Target app between Jan 22 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, 27,188 downloads of the target app were made. A month and a half later, this had increased significantly. On March 15, the total downloads made of the target mobile app were a staggering 53,150.

 

What does the above show? It shows that the COVID-19 pandemic has propelled many people who previously preferred shopping in person to download mobile apps of grocery delivery services to have food, drink, and other essentials delivered to their doorstep. This trend is only going to increase in the coming months and years.

 

It is isn’t just Instacart, Walmart Grocery, Shipt, and target that have experienced an increase in app downloads, other food, and drink retailers are also seeing growth in this area. Two such retailers are Costco and BJs Wholesale. The following is a graph illustrating the app downloads of these two retailers between Feb 1 and March 20, 2020.

 

 

(Number of daily downloads of Costco and BJs Wholesale mobile apps between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, 13,026 downloads of the target app were made. A month and a half later, this had considerably increased. On March 20, the total downloads made of the Costco mobile app were 25,116. Similarly, the total downloads of the BJs Wholesale mobile app on Feb 1 were 3,990. On March 20, this had increased to 7,614.

 

While the daily app downloads of the above-mentioned five retailers offering food delivery services have increased, the overall pattern in the sector has been fluctuating since the outbreak of the coronavirus pandemic. This is illustrated by the following graph showing the overall daily downloads of top food delivery apps between Feb 1 and March 20, 2020.

 

 

(Daily downloads of top food delivery apps between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that the overall daily downloads of top food delivery apps have been fluctuating since the outbreak of the COVID-19 pandemic. For instance, the total number of downloads of the top food delivery apps made on Feb 1 was 231,681. This increased to 217,217 on Feb 2 then 208,772 on Feb 5. Another spike was experienced on Feb 9 when the daily downloads increased to 247,863. It then decreased dramatically on Feb 13 when only 200,368 downloads were recorded.

 

This pattern continued with a substantial increase in downloads on Feb 16, a major decline on Feb 20, an increase again on Feb 23, decreased on Feb 26, an increase on March 1, decreased on March 14, and then again increase on March 20. What does this indicate? It indicates that the number of people downloading food delivery apps in the U.S is on the way up. The fluctuations in daily downloads are there due to external factors such as workdays, a countrywide event, slower networks, etc. that may be causing a lower number of downloads on specific days.

 

 

As anticipated, with prohibitions on travel imposed by governments, the business has rapidly contracted within the travel industry — including hotels, online travel agencies ( OTAs), airlines, among others—and is echoing in the app download and visit stats provided by Apptopia and depicted below.

 

 

(Number of airlines app downloads between Feb 1 and March 20 2020 [Image Source])

 

The above graph illustrates the app downloads globally and in the United States between Feb 1 and March 20, 2020. From the graph, we find that, on Feb 1, the total number of apps downloads of the top 10 airlines in the U.S was 75,496. This peaked to 86,980 on Feb 22 when the total number of coronavirus cases in the U.S was relatively low. Thereafter, it continued to decrease before experiencing another spike on March 13 when the total number of downloads increased to 86,106 which was significantly higher than the number on March 4 when app downloads of the top 10 airlines hit rock bottom, recording only 69,446 downloads.

 

However, airline app downloads started declining again after March 13 and had decreased to 77,022 on March 20. The same trend was seen globally as well. On Feb 1, the total number of apps downloads of the top 10 airlines globally was 200,186. This peaked at 203,879 on Feb 22.

 

It continued to decrease thereafter before experiencing another spike on March 13 when the total number of downloads increased to 194,894 which was significantly higher than the number on March 4 when app downloads of the top 10 airlines hit rock bottom, recording only 178,128 downloads.  Like in the U.S, the airline app downloads started declining globally after March 13 and had decreased to 176,389 on March 20.

 

In the U.S, the airlines that have suffered the most due to this fluctuation in-app downloads include American Airlines and Ryanair. The following is a graph showing the impact of COVID-19 on the mobile app downloads of these two airlines between Feb 1 and March 20, 2020.

 

 

(Number of mobile app downloads of American Airlines and Ryanair between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, the total number of downloads of the American Airlines mobile app was 18,280. This peaked at 21,998 on Feb 10. It continued to decrease thereafter before experiencing another spike on March 8 when the total number of downloads increased to 21,876 which was significantly higher than the number on March 4 when app downloads of American Airlines hit rock bottom, recording only 17,041 downloads.  However, the mobile downloads of American Airlines started declining again after March 8 and had decreased to 17,693 on March 20

 

The other airline that had suffered the most in terms of mobile downloads due to the COVID-19 pandemic is Ryanair. On Feb 1, the total number of downloads of the Ryanair mobile app was 1040. This decreased to 1027 on Feb 7. It continued to decrease thereafter before experiencing another spike on Feb 21 when the total number of downloads increased to 1009, which was considerably higher than the number on Feb 19 when app downloads of Ryanair hit rock bottom, recording only 789 downloads.  However, the mobile downloads of Ryanair started declining again after March 8 and had decreased to 312 on March 20

 

The number of app downloads of the apps of the top 45 online travel agencies (OTAs) is another important stat that we need to discuss to demonstrate how the COVID-19 pandemic has impacted mobile downloads and use in the travel industry. The following is a graph illustrating this:

 

 

(Top 45 OTA apps download worldwide between Jan 1 and March 20 2020 [Image Source])

 

The above graph shows the mobile app downloads of the top 45 online travel agencies (OTAs) between Jan 1 and March 20, 2020. From the above graph, we find that, on Jan 1, 1, 018, 076 apps of the top 45 OTAs that were downloaded worldwide. This peaked to 1, 122, 065 downloads on Jan 17.  The app downloads started to decrease thereafter and other than a spike on Feb 2, when the total number of downloads increased 1, 067, 686, the top 45 OTAs have only witnessed a decline in their app downloads worldwide.  On March 20, this number has decreased to 648,961 downloads, 40% less than the number on Feb 2.

 

 

The coronavirus situation all over the world is changing every hour. As a result of this, people across the globe suddenly have an elevated curiosity in readily available breaking news. In the last few months, the daily downloads of mobile-based news applications have increased dramatically, with some providers creating new records. Two examples of this are SmartNews and Newsbreak. The following is a graph showing the daily downloads of these two news apps worldwide between Feb 1 and March 20, 2020.

 

 

(Daily downloads of SmartNews and NewsBreak worldwide between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, the total number of downloads of the SmartNews mobile app was 48,857. This decreased to 38,432 on Feb 5. It continued to increase thereafter, with the greatest spike recorded on March 15 when the total number of downloads increased to 108,147 which was an increase of over 16000 downloads from the previous day.

 

The daily downloads of SmartNews mobile apps have continued to grow thereafter to reach 163,160 on March 20.  We have data only till March 20 but this number has likely increased even further during April and May.

 

If we talk about the other news app News Break, then we find that, on Feb 1, the total number of downloads of the News Break mobile app was 92,610. This decreased to 79,028 on Feb 5. It continued to increase thereafter, with the greatest spike recorded on March 15 when the total number of downloads increased to 178,816, which was an increase of over 55000 downloads from the previous day.   

The daily downloads of the News Break mobile app have continued to grow thereafter to reach 265,305 on March 20.  We have data only till March 20 but this number has likely increased even further during April and May.

 

While the daily downloads of the Smart News and News Break mobile apps have increased steadily between Feb 1 and March 20, the Washington Post has experienced some fluctuations in the daily downloads of its mobile app. This is illustrated in the following graph:

 

 

(Daily downloads of the Washington Post app worldwide between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, the daily downloads of the Washington Post mobile app were 6,194. This peaked at 6,466 on Feb 16 and started to decrease thereafter. The next big spike was recorded on March 8 when the total number of daily downloads was 6,313 which was considerably higher than the number on Feb 22 when app downloads of Washington Post hit rock bottom, recording only 5776 downloads.

 

After the increase on March 8, the daily downloads of the Washington Post mobile app started to decline again before experiencing a major spike on March 18 when the daily downloads of the news app crossed the 7500 mark. However, the very next day there was a major decrease in downloads which continued into the following day and the daily downloads recorded on March 20 were 6,899.

In addition to these three popular news apps, the mobile apps of popular news networks such as CNN and Fox News have also experienced mixed trends in the daily downloads of their mobile applications as is illustrated in the graph below:

 

 

(Daily downloads of CNN and Fox News worldwide between Feb 1 and March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, the total number of downloads of the Fox News mobile app was 15,198. This decreased to 12,982 on Feb 4. It started to increase again, with the total daily downloads recorded at 16,369 on Feb 6. Once again, the downloads started to decrease before experiencing another spike on Feb 20 when the total downloads increased to 11,170 which has considerably higher than the number on Feb 18 when app downloads of Fox News hit rock bottom, recording only 10,302 downloads.

 

It started to decrease again before experiencing a spike on March 5 when the total daily downloads recorded were 14,147. Fox News experienced a decline in its mobile app downloads once again and the total number of downloads recorded on March 9 was only11, 332. However, this started to increase again and continued increasing to reach 30,411 daily downloads on March 20.

 

On the other hand, looking at the numbers of CNN, we find that, on Feb 1, the total number of downloads of the CNN mobile app was 35,922. This decreased to 26, 219 on Feb 4. It started to increase again, with the total daily downloads recorded at 29,443 on Feb 8. Once again, the downloads started to decrease before experiencing another spike on Feb 26 when the total downloads increased to 24,656 which has considerably higher than the number on Feb 17 when app downloads of CNN  hit rock bottom, recording only 19,305 downloads.

 

It started to decrease again before experiencing a spike on March 6 when the total daily downloads recorded were 30,031. Fox News experienced a decline in its mobile app downloads once again and the total number of downloads recorded on March 10 was only, 26, 604. This started to increase again and continued increasing to reach 83,531 daily downloads on March 17.  However, the daily downloads started to decline again and the number of downloads of the Fox News mobile app made on March 20 was only 67,574.

 

 

Although the stats that we are going to provide below are China-specific, they demonstrate the growing popularity worldwide of mobile apps that enable workplace chats. The download traffic of work chats in China has increased significantly according to Apptopia. This is mainly because employees have been increasingly migrating to remote working environments due to the coronavirus pandemic.

The workplace chats allow colleagues to collaborate and share thoughts and ideas instantly. This is increasing the popularity of workplace apps worldwide as is evident in the following graph that shows the daily active users of workplace chats in China and how they have grown between Jan 1 and March 20.

 

 

(Daily active users in China of workplace apps during Jan 1-March 20 2020 [Image Source])

 

From the above graph, we find that, on Feb 1, the total number of Tencent Conference daily active users in China was 10, 075. China had 0 confirmed cases on this date. The daily active users of Tencent Conference increased steadily thereafter before a major spike was experienced on Jan 29 when 54,154 people were using the app. The total number of confirmed coronavirus cases in China on this date was 6,087. From there on in, as the number of confirmed coronavirus cases in the country increased, the total number of daily active users of the Tencent Conference app also increased and reached 6,116, 765 workplace chat visitors on March 20. On this day, the total number of confirmed coronavirus cases had reached 81,156.

 

Similarly, on Feb 1, the total number of daily active users of the WeChat Work app in China was 1,405, 569. China had 0 confirmed cases on this date. The daily active users of WeChat Work increased steadily thereafter before a major spike was experienced on Feb 4 when 1,725,382 people were using the app. The total number of confirmed coronavirus cases in China on this date was 23,707. From there on in, as the number of confirmed coronavirus cases in the country increased, the total number of daily active users of the WeChat Work app also increased and reached 4,350, 196 workplace chat visitors on March 20. On this day, the total number of confirmed coronavirus cases had reached 81,156.

 

Lastly, the total number of daily active users of the DingTalk app in China on Feb 1 was 1,405, 569. China had 0 confirmed cases on this date. The daily active users of DingTalk increased steadily thereafter before a major spike was experienced on Feb 1 when 2, 548, 224 people were using the app. The total number of confirmed coronavirus cases in China on this date was 11,891. From there on in, as the number of confirmed coronavirus cases in the country increased, the total number of daily active users of the DingTalk app also increased and reached 11, 074, 148 workplace chat visitors on March 20. On this day, the total number of confirmed coronavirus cases had reached 81,156.

 

The purpose of the statistics and number provided above is to allow app development companies, freelance app developers, and other people looking to make money from apps to know which sectors are the most lucrative for app development currently. For instance, from the information provided above, we can conclude that now would a great time to invest in the development of news and workplace chat applications. Grocery delivery apps are another good option for app development under the current situation where many people are living in lockdown or have to practice social distancing.

 

On the other hand, it would be best to avoid investing time and money into the development of travel apps as the majority of the people today won’t be making any travel or holiday plans for the next few months at least if not more. This is going to impact the airline, travel, and hospitality industry and anyone who develops mobile applications to cater to them.

 

 

Businesses in many industries have been forced to shut down due to the Coronavirus pandemic. The losses incurred by the fashion, tourism, real estate, construction, and manufacturing industries since the outbreak of the COVID-19 pandemic have forced many businesses to half their operations while causing others to shut down permanently.

 

Fortunately for app development companies and freelance app developers, the software/IT industry in general and the app development industry, in particular, have not been impacted too much by the COVID-19 pandemic. In fact, in many areas, there has been an increase in demand for mobile applications since the outbreak of the coronavirus pandemic. In short, the app development industry is experiencing hay days and this is going to continue at least until a vaccine for COVID-19 is found.

 

According to a report by SensorTower, Covid-19 has caused an increase in data usage for downloading mobile applications by a whopping 52%. The following is an illustration of this:

 

 

(Data Usage in petabytes for downloading the top 250 apps during Q1 2018, Q1 2019, and Q1 2020 [Image Source])

 

The graph above shows data usage in petabytes for new downloads of the top 250 apps globally during the first quarter of 2018, 2019, and 2020. From the graph, we find that data usage for new downloads in the first quarter of 2019 decreased by 4% compared to the same quarter of the previous year. However, in Q1 of 2020, we saw this increase by a staggering 34% compared to Q1 of 2019.

There can be the only reason for this and that is the outbreak of the coronavirus pandemic, which has forced many people to turn to apps for convenient and safe grocery and other essentials shopping, socializing entertainment, and more. So, what are the major apps being increasingly used during the COVID-19 pandemic? They are detailed below.

 

 

Ecommerce apps like online shopping apps and grocery delivery apps are being increasingly downloaded and used. Today, these apps are used to conveniently buy foods, fruits, snacks, clothing, and other items found in a supermarket, grocery store, or mall. In fact, in some countries, the government has launched e-commerce apps to meet its citizens' needs.

 

 

During the current pandemic, social media apps like WhatsApp, Instagram, Twitter, and Facebook are playing a bigger role in people’s lives than they did before its outbreak. Most people spent a good part of their day on these social platforms even before the first case of coronavirus was reported. However, new research shows that the popularity of social media and entertainment apps has increased significantly during lockdowns across the globe and they are the most used type of app today.

 

From children to the elderly, everyone’s using social media and entertainment apps to watch funny videos, memes, cooking channels, quotes, inspiring stories, while communicating and sharing their thoughts with others. In short, social media and entertainment apps are keep everyone upbeat during the COVID-19 enforced lockdown and social isolation, which is increasing their popularity and use.

 

 

Healthcare apps are one of the most downloaded apps since the outbreak of the coronavirus pandemic. While it is incredibly difficult to get a doctor’s appointment during the current pandemic situation, reaching out to a doctor online and getting valuable suggestions from them has never been easier.

 

Additionally, you no longer need to visit a pharmacy physically to buy medicines or medical kits as you can easily order them and get them delivered to your home without even getting out of your bed. This is made possible by mHealth applications. According to MarketsandMarkets, the global mHealth solutions market will grow from just under US$51 billion in 2020 to US$213.6 billion by 2025. The market will grow at a CAGR of 33% during the period 2020-2025 to reach this number.  This is illustrated by the following graph that shows the forecasted growth of the mHealth solutions market during 2018-2025.

 

 

(mHealth Solutions market overall and by region during forecast period 2018-2025 [Image Source])

 

From the above graph, we find that the mHealth solutions market has been growing steadily since 2018. However, major growth is expected in the market this year and in 2021 due to the increased demand for mHealth apps caused by the coronavirus pandemic. However, the coronavirus pandemic making people more concerned about their health is just one reason for this growth of the mHealth solution market. Other factors that will drive the growth of this market include the growing adoption of smartphones, the proliferation of 5G technology, increasing demand for home healthcare services, and the advancement of artificial intelligence (AI) technology.

 

 

Educational apps are also experiencing an increase in their popularity and use during the current pandemic. Some schools and colleges have made it mandatory for students to learn through selected e-learning apps. Additionally, many teachers are communicating with and teaching their students through applications designed specifically for the education industry.

 

This is allowing many educational platforms to experience a major increase in the use of their apps. An example of this is the Bangalore-based company BYJU’s that provides online tutoring and educational technology. After the outbreak of COVID-19, the company started offering free live classes on its Think and Learn app. This has helped BYJU’s achieve a 200% increase in the number of students using its app.

 

Additionally, a Chinese-based education platform Tencent Classroom has seen a massive increase in the use of its app since February after the government instructed students to continue their learning online. Since February, a total of 730,000 K-12 students have been using the Tencent Classroom app to attend their classes.

 

 

With dine-in at restaurants no longer allowed in most of the countries, people are looking at the best options for taking away and delivery. Since there is a risk of contracting coronavirus while picking up a takeaway order in addition to the inconvenience of having to make the trip to pick the order up, most people prefer to have their food delivered to them at home. This is great news for food delivery services and those that specialize in the development of apps for this sector.

 

The coronavirus pandemic has already started to have a positive impact on food delivery apps. According to the NPD group, after the first coronavirus case was confirmed in China, food deliveries grew by 20% during January. This has only increased since then and the same is being seen in many other countries of the world.

 

 

Lockdowns and social distancing measures put in place by governments worldwide have forced people to spend most of their time indoors. This means that people now have more time on their hands than they did previously. This often leads to boredom. However, people have found ways around it and one of them is the use of video streaming apps such as YouTube, Netflix, and Amazon Prime.

 

The number of people downloading and using these apps has increased significantly since the outbreak of the COVID-19 pandemic. According to recent research by SensorTower, more than 29 million downloads of the YouTube app was made during May 2020, which is an increase of almost 30% from May 2019. Netflix was second with over 23 million downloads and Amazon Prime filled the third place. The following infographic shows the ten most downloaded video streaming apps in May 2020:

 

 

(Top 10 most downloaded video streaming apps overall, on App Store, and Google Play in May 2020 [Image Source])

 

In this research article, we discussed the impact of COVID-19 on the app development industry, including the impact of the pandemic on the popularity of consumers and business mobile applications, and the major apps being used during the COVID-19 pandemic.

 

We discussed the impact of COVID-19 on app use and download across various industries, including the impact on food & drink, travel, news, and workplace chat apps. We also discussed the type of apps that have been increasingly downloaded and used since the outbreak of the coronavirus pandemic. All of the information provided above is based on thorough research which makes it reliable.