Brussels, 13/02/2014 (Agence Europe) - According to a report presented by the European Commission on 13 February, the EU's app sector has gone from zero to digital superhero in less than five years. For European Commissioner for the Digital Agenda Neelie Kroes, this is excellent news because it confirms that the economy provides a reservoir of jobs for young people. She called on a member states and Parliament to adopt the “Connected Continent” legislative package as soon as possible in an effort to break down the barriers to this sector currently enjoying exponential growth, “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. But we have to address concerns about connectivity and fragmentation - yet another reason to complete the telecom single market!”
The report, “Sizing the EU App Economy” was carried out by GIGAOM and shows that EU and North American developers currently generate the same levels (42% each) of app revenues in crucial EU and US markets but that Europe's app developers will be up to the challenge of taking the global lead if they are able to benefit from a more unified single market. Although the future is bright, developers have raised concerns about the skills gap, connectivity and fragmentation which could put the app boom at risk.
Today the app economy employs 1 million developers, and 800,000 people in marketing and support posts. This could rise to 2.7 million developers plus 2.1 million support staff by 2018, a total of 4.8 million in total. EU buyers and advertisers spent €6.1 billion on apps in 2013, 30% of total global app spending, growing to €18.7 billion in 2018. Consumer spending combined with advertising and contract work could lead to €63 billion annual revenue for the app sector within five years. The study also provides the following details: 1) EU games app developers lead the field: 28 EU leading companies created 40% of the top 100 grossing apps in the EU and US. Three of the top-five companies are Nordic games developers (1st King.com, 2nd, Supercell, 5th Rovio) with German, French, Spanish and UK app developers also finding success outside their native markets; 2) Growing market, growing jobs: in 2013, developers earned €11.5 billion making apps for consumer goods, banking, media, retail and other clients. They can expect to earn up to €46 billion through contracts of this nature in 2018. The app boom is creating jobs, for example, contract developers Golden Gekko (London/Barcelona) plans to grow its staff 40-50% next year and London-based Grapple Mobile, a 3-person firm three years ago, employs 120 now, and intends to double next year. (IL/transl.fl)