App Developer

This pack has been designed to provide information on setting up a business in the App Developer industry in
Scotland, as well as helping to inform the market research section of your business plan. You can find more
information on how to write a business plan from the Business Gateway website
(www.bgateway.com/businessplan), including an interactive template and tips to get you started.

This market report was updated by Business Gateway in September 2023. If you find the information contained in
this document useful, tell us about it! Send us feedback here; we will use your comments to help improve our
service.

What do I need to know about the App Developer market?

The following summary statistics have been taken from market research reports and reliable resources that the
Information Service uses to compile industry information. They should give you an indication of how your industry
is faring at present and whether there is demand for your type of business:

♦ Over the next five years, industry revenue is forecast to grow at a compound annual rate of 14.2% to
total £42.2 billion in 2027-28. As smartphone penetration begins to reach saturation, the industry will no
longer be able to expand at the rate recorded over the past decade. However, advances in smartphones
and technology, such as augmented reality and connectable gadgets, are expected to provide developers
with new opportunities for growth in the coming years. (IBISWorld, App Development in the UK, March
2023).
♦ Mintel forecasts that the value of the mobile device apps market will be £3,027.6m in 2022, a downturn
on 2021’s all-time record-breaking figure of £3,247.5m. 2022 has seen competing time and attention
from in-person shopping and socialising post-pandemic. Despite mobile apps’ relatively low entry point in
terms of cost, they also aren’t immune to the effects of the cost of living crisis (Mintel, Mobile Device
Apps UK, 2022).
♦ The global mobile apps market was valued at $604.85 billion in 2022 and is estimated to grow to
$1,700.75 billion in 2027. This will create an incremental growth opportunity worth $1,095.9 billion
between 2022 and 2027, which translates to around 182% of the market size in 2022. This
represents significant growth opportunities for vendors. Vendors can continue to grow by
leveraging the inherent growth opportunities available within the market while avoiding direct
competition. (Technavio, Global Mobile Apps Market 2023-2027).
♦ In January 2023, WhatsApp was the most popular mobile app for smartphone or tablet users in the
United Kingdom, with an audience reach of 86.6 percent. Social media giant Facebook followed, with a
reach of around 78 percent of the country's digital population. Google Maps ranked third with an
audience reach of 71 percent. In 2023, e-mail services, mobile social media, and messenger apps were
the most popular categories for smartphone users in the country. (Statista, Leading Mobile Apps in the UK
2023 by Reach).
♦ The national organisation for this include: The App Association, Application Developers Alliance,
ScotlandIS, The Business Application Software Developers Association (BASDA), and Creative
Scotland.
Where can I find more information on my market?
The Information Service has access to a number of databases which can offer more detail on this industry. Some
of these reports are listed below - if you would like to be sent extracts from any of these reports, please contact
us on 0300 013 4753 or email [email protected].

♦ Technavio – Global Fitness App Market (2023-2027). Women are major contributors to the growth of the
global fitness app market. The rising
adoption of fitness trackers by women drives the growth of the segment. In 2020, the primary
users of Fitbit wearable devices were women, who accounted for approximately a 60%-70%
share. Women are more likely to download health and fitness-related apps than men.
♦ IBISWorld – Software Development in the UK (March 2023). Ongoing developments to technology like
mobile devices and cloud networks are creating new sources of demand for software. Growing adoption
of information technology in different areas of life can also breed new demand for the industry.
Furthermore, developments in hardware, such as smartphones, tablets and wireless devices, have
created new markets for software developers, which are able to expand into mobile apps or embedded
software for new technologies.

There are also a number of online resources you may find helpful:

♦ You can register, for free, with the National Library of Scotland (nls.uk) and gain access to their online
business resources including Complete Business Reference Adviser (COBRA). Here you can access their
Freelance App Developer Business Opportunity Profile (October 2020) which provides information on
trading issues and links to other information sources.
♦ Google publishes free marketing resources on the Think with Google site. They have a page on App &
Mobile marketing perspectives, with articles and presentations on subjects such as app optimization and
advertising, as well as news pieces on trends in the industry and case studies on specific company
successes with their apps (shorturl.at/beioC).
♦ British Application Software Developers Association (BASDA) is a UK trade body representing the UK
business software industry. They have best practice guides and standards sections on their websites as
well as other resources.

Disclaimer: Please note that this research may contain copyrighted material. Copyright belongs to the holders
credited above and, as such, recipients of this research reproduce and repurpose this information at their own
risk.
How can I find out about my competitors?
Business Gateway’s online guide to Competitor Analysis explains how to find your competitors, how to research
what they’re doing and how to act on what you learn about them.

Immediate competition will be from other businesses in your local area. There are several online directories
which can be used to find company information and generate lists easily and at no expense. Many Local
Authorities also publish local business directories on the web. Below are some key web resources:

♦ General business directories such as Yell ,Thomson Local or Google Maps

♦ Trade specialists like EuroPages (European directory), The Wholesaler or Free Index
♦ Business to business (B2B) specialists such as Kompass

Likewise, your local Chamber of Commerce may publish a members’ directory; find your local Chamber on the
Scottish Chambers website.

Once you’ve identified who your competitors are, the next step is to gather information on the way they do
business. Which services do they provide? How do they market themselves? How much do they charge?

To learn about your competitors:

♦ Look for articles or adverts in local newspapers, trade press and directories.
♦ Try to read their marketing material; if the company has an online presence, visit the company’s website
as a first port of call. Not only does it give you a better understanding of the company’s activities, it can
also offer a wealth of information such as a company history or staff biographies, as well as the
company’s partners or suppliers
♦ Search for information on limited UK companies via the Companies House website
♦ Gain an insight into your competitor’s performance using credit checks and the accounts that limited
companies are required to submit to Companies House each year.

We can provide credit checks free of charge; if you are interested in using this resource, or looking for us to help
you find relevant publications, please contact us by emailing [email protected] or by calling 0300 013 4753
What about suppliers?
Choosing and Managing Suppliers can help you decide what you need from a supplier, how to identify one and
how to choose one to deal with.

Trade associations or industry specific organisations may also be able to recommend suppliers or contacts. You
can also use the aforementioned resources for finding competitors to find suppliers.

Once you have decided on a supplier, we can run a credit check on the company to help assess their financial
stability. We provide credit checks free of charge; if you are interested in using the resource please
[email protected] or by calling 0300 013 4753.

Who are my customers?

Your business plan should include information about the customers you would expect. Business Gateway’s guides
on Market and customer research will help you to identify new trends, opportunities, customers and competitors.

It can be useful to group your customers by geographical location, age or lifestyle. The websites listed below are
freely available and can provide most of this information. If you can’t find what you’re looking for from these
website, please contact us and one of the team will be happy to help:

♦ Access the latest population estimates from the National Records of Scotland (NRS). NRS also offers
demographic factsheets for each council area in Scotland, which can provide summary statistics for the
area you will be based in.
♦ Information from the most recent census in 2011 is released via the official website. See in particular the
Census Area Profiles. Clicking on your area of interest will give the latest population figures, including
estimates by age.
♦ Understanding Scottish Places has interactive profiles of towns and cities across Scotland. It can be useful
for understanding the interrelationships and flows between towns, and also gives comparisons between
two or more places.
♦ Scottish Government Statistics provide accurate and up-to-date statistics on Scotland, covering
population, health, education and housing.
♦ The Scottish Household Survey provides information on the structure, characteristics, attitudes and
behaviour of Scottish households, both at a national and local level.
♦ Office for National Statistics (ONS) is the recognised national statistical body for the UK. ONS covers a
wide range of demographic, economic and social issues at a UK level.
How can you help me with other aspects of starting my business?
The Business Gateway website has guides, videos, online tutorials and tips on all aspects of starting up a business
in Scotland. Follow the links below to explore each resource:

Accountancy Pricing
Institute of Chartered Accountants of Scotland’s Business Companion Pricing & payment guide.
(ICAS) “Find a Chartered Accountant” tool Please note: the most effective way to research
pricing is to conduct your own research – visit
Funding wholesalers or suppliers to obtain price lists, find
quotes from similar companies and work out what
Practical information on finance and funding for
other businesses in your area are charging
starting and growing your business

Promotion
Insurance
BG guides to Marketing
Business insurance guide

Training
Legal Help
Skills Development Scotland’s My World of Work
Gov.uk “Licence Finder” tool
Funding for training
Law Society of Scotland’s “Find a Solicitor” tool
Small Business Bonus Scheme (Scotland)

Your local Business Gateway can offer events, workshops and 1:2:1 support on all aspects of starting and
developing your business. Call the helpline on 0300 013 4753 to find out what is available in your area.

We hope you find this Market Report useful and we’d love to hear your feedback here.

Although every effort has been made to ensure the accuracy of the information provided, Business Gateway will not be held
liable for any inaccuracies or omissions in the data supplied, or for the content of any website that the document above may
contain links to. By using this information, you accept this disclaimer in full. Also, please note that Business Gateway does not
endorse any business or individual that may be referred to above.

You must not rely on the information in the report as an alternative to advice from an appropriately qualified
professional. If you have any specific questions speak to your Business Gateway Advisor or consult an appropriately
qualified professional.

Last updated: September 2023

Updated by: Liesel