Mobile App Industry Trends 2021 — How Mobile Apps are Adjusting to the New Virtual Lifestyle ©2021 Sensor Tower Inc. - All Rights Reserved Executive Summary: Highlights Hypercasual continues to be a hot trend in Stock trading and cryptocurrency apps continue mobile gaming, with the top hypercasual titles to see high volume in demand going into the new surpassing 10 billion installs in 2020. Easy-to-play year. IQ Option and Expert Option were the top two games gained massive popularity amid COVID-19. trading apps by downloads in 2020. More core games are adopting in-app More consumers being home has led to a 39 subscription models. Subscriptions in games saw a percent Y/Y growth rate among top smart home slight correlation with higher long-term retention apps. Home-centric lifestyles have inspired rates than games without them in 2020. consumers to invest in smart technology. 2 ©2021 Sensor Tower Inc. - All Rights Reserved Industry Trends 2021: Table of Contents Mobile Industry Trends 2021 report offers analysis on the latest trends for the category: 5. 2020 Industry Recap An overview of the app industry in 2020 along with top categories and countries 11. Mobile Gaming 14. Hypercasual Game Adoption Takes Off Examine how hypercasual games grew their massive popularity in 2020 18. Mobile Games Find Success with Subscriptions A look at games that use in-app subscriptions and how it affects retention 22. Mobile Apps 25. The Booming Fintech Market The global fintech market continues to experience high adoption 30. The Rise of 5G and Smart Home Apps A look at smart home apps and how quarantines affected growth 33. Growth of Mobile Hangout Apps Accelerates COVID-19’s impact on adoption and demographics of social apps ©2021 Sensor Tower Inc. - All Rights Reserved About This Data: Methodology Could your business benefit from Sensor Tower’s Mobile Insights team compiled the download estimates provided in this report using the Sensor Tower Store Intelligence platform. access to Store Intelligence insights and the highly accurate data used ● Figures cited in this report reflect App Store and Google Play to build this report? See the fastest download estimates for January 1, 2018 through December 31, 2020. ● Download estimates presented are on a per-user basis, meaning that growing apps and publishers by only one download per Apple or Google account is counted towards downloads or revenue. the total. ● Downloads of the same app by the same user to multiple devices, updates, or re-installs of the same app by the same user are not REQUEST DEMO counted towards the total. ● Android app install estimates represent downloads from the Google Play Store only. Sensor Tower does not provide download estimates for third-party Android stores. Store Intelligence 4 2020 Mobile App Market Recap ©2021 Sensor Tower Inc. - All Rights Reserved 2020: An Eventful Year in Mobile Apps Top industry events in 2020 corresponding to installs Monthly Worldwide Installs Byte, the short video app from the co-founder of Vine, was released and generated 1.3M installs in its first week. Jan 10.8B Feb 10.4B Tiktok surpassed 120M worldwide downloads. Disney+ launched in the European app stores. Mar 12.6B Zoom crossed 140M worldwide downloads. Quibi’s mobile-only Apr 13.5B streaming service made its first appearance in April. Animal Crossing: New Horizons spurred Nintendo’s Pocket May 12.5B Camp mobile game to $150M in spending. The HBO Max app released on both stores. Jun 11.7B Multiple apps removed on the App Store in China due to strict 12.3B enforcement of ISBN. India banned TikTok and Chinese apps. Jul Aug 12.3B Among Us gained 85M downloads in September. Oracle became the cloud provider for TikTok amid calls for its ban in the U.S. Sep 11.7B Genshin Impact released on both app stores and generated $60M 11.7B in spending during its first week. Oct Nov 11.4B Mobile app spending surpassed a record high of $400 million on Christmas Day. Roblox was the top app by worldwide spending. Dec 12.0B 0 5B 10B 15B ©2021 Sensor Tower Inc. - All Rights Reserved COVID-19 Spurred Lasting Lift in Mobile App Spending Worldwide monthly installs and spending across the App Store and Google Play The 2020 holiday season drove mobile 2019 Installs Install Growth in 2020 2019 Spending Spending Growth in 2020 16B $12B spending to a new record of $10 billion in December, while monthly downloads surpassed 14B 12 billion for the sixth time in 2020. $10B $3B 12B COVID-19 boosted the year-over-year $2B 4.2B $3B $2B 2.8B 2.1B 2.3B $2B 3.0B 2.1B $3B $2B spending growth rate for monthly installs 2.0B 2.0B $2B 2.3B 1.9B $8B $2B 965M $1B 10B $2B and revenue to above 30 percent throughout 1.8B $1B the year after March, as opposed to an 8B $6B average of 21 percent in the beginning at the start of year. COVID-19’s impact on downloads 6B may be short-lived, but spending trends indicate $4B $8B 10.2B 10.0B $8B that apps are already seeing the benefits of 9.8B 9.8B 9.7B 9.7B 9.9B $7B $7B $7B 9.6B 9.4B 9.5B $7B $7B 9.2B $7B $7B $7B $7B 8.6B $6B 4B adding these new users. $2B 2B 0 $0 Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20 Jan-20Feb-20Mar-20Apr-20May-20Jun-20Jul-20Aug-20Sep-20Oct-20Nov-20Dec-20 Market Overview 7 ©2021 Sensor Tower Inc. - All Rights Reserved Growth of Essential Apps Remains High Monthly install growth by category compared to January 2020 Business, Health & Fitness, and Education Business Medical Finance Entertainment Education Health & Fitness News 200% category apps saw the largest COVID-19 related boost following the outbreak of the virus. The demand for remote work and home workouts spiked along with downloads of 150% related apps. Contact-tracing and telemedicine apps 100% continued to show high adoption growth Business throughout the year as COVID-19 raised awareness for health monitoring. The British 50% Medical contact-tracing app, NHS COVID-19, was the Finance most downloaded medical app in 2020, Entertainment accounting for 15 million installs. Education 0% Health & Fitness News Note Regarding Growth Rate -50% Each monthly growth rate is calculated based on the category downloads in January 2020. Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Market Overview 8 ©2021 Sensor Tower Inc. - All Rights Reserved India’s Mobile App Adoption Continues to Break Records Monthly install growth by country compared to January 2020 India and Brazil’s mobile markets are on a India Turkey Brazil U.K. U.S. Russia China 80% rise, achieving a year-over-year growth in mobile adoption of 35 percent and 32 percent, respectively, in 2020. Utility and 60% Photo & Video category apps saw the most success outside mobile games in these markets. India +35% Y/Y 40% While the largest markets have started to see downloads return towards pre-pandemic Turkey +30% Y/Y 20% numbers or below, Turkey’s installs climbed in December. Another top growing market, Brazil +32% Y/Y Brazil, saw 32 percent Y/Y growth. U.K. +16% Y/Y 0% U.S. +12% Y/Y Russia +13% Y/Y -20% China -1% Y/Y Note Regarding Growth Rate -40% Each monthly growth rate is calculated based on the country downloads in January 2020. Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Market Overview 9 ©2021 Sensor Tower Inc. - All Rights Reserved New Apps Releases Increase by 5% on the App Store Apps released in 2020 on App Store and Google Play by top category Approximately 5 percent more new apps were App Store Google Play released on the App Store in 2020 than 2019, Games 65K Games 225K with Games accounting for 13 percent and Utilities 49K Education 136K Utilities accounting for 10 percent of new Business 47K Entertainment 132K apps. Utilities and Business stood out as the top Lifestyle 43K Music & Audio 126K growing non-gaming categories, suggesting that Food & Drink 40K Tools 101K increased demand created a market for new Education 39K Business 92K apps on the App Store. Shopping 37K Food & Drink 83K Entertainment 25K Shopping 82K The Education and Entertainment categories both saw an increase in the number of apps Health & Fitness 24K Books & Reference 74K released in them on Google Play, each Productivity 22K Lifestyle 58K accounting for 8 percent of the new apps Finance 15K Personalization 52K launched. Entertainment was the second most Social Networking 14K Productivity 51K popular non-gaming category on Google Play by Travel 13K Health & Fitness 49K downloads in 2020. Medical 10K Finance 41K Sports 10K Total: +5% Y/Y Social 40K Total: -5% Y/Y Note Regarding New Apps New apps include apps released in 2020 on at least one of 0 40K 80K 0 100K 200K 300K the stores and have ranked among the top 1,500 apps by daily downloads at least once. Market Overview 10 Mobile Gaming Trends ©2021 Sensor Tower Inc. - All Rights Reserved Among Us and Hypercasual Titles Lead the Top Mobile Games by Downloads Quarterly top games by worldwide downloads on the App Store and Google Play Q1 2020 Q2 2020 Q3 2020 Q4 2020 Hunter Assassin Save The Girl NEW Among Us NEW Among Us - 1 Ruby Game Studio 1 AppLovin 1 InnerSloth 1 InnerSloth My Talking Tom Friends Brain Out Garena Free Fire +4 NEW Join Clash 3D NEW 2 Focus Apps 2 Garena Games 2 Outfit7 2 Supersonic Studios Scribble Rider Woodturning PUBG Mobile +2 NEW Shortcut Run NEW 3 Voodoo 3 Tencent 3 Voodoo 3 Voodoo Subway Surfers Johnny Trigger Gardenscapes +5 +2 Garena Free Fire +1 4 SayGames 4 Playrix 4 Sybo Games 4 Garena Games PUBG Mobile Ludo King NEW Garena Free Fire -3 Subway Surfers -1 5 Tencent 5 Gametion 5 Garena Games 5 Sybo Games Garena Free Fire Subway Surfers +2 Cube Surfer NEW Tiles Hop NEW 6 Garena Games 6 Sybo Games 6 Voodoo 6 Amanotes Draw Climber Hunter Assassin -6 Stack Colors NEW Roblox NEW 7 voodoo 7 Ruby Game Studio 7 Voodoo 7 Roblox My Talking Tom Friends Subway Surfer Fishdom NEW Tie Dye NEW -6 8 Sybo Games 8 Playrix 8 Crazy Labs 8 Outfit7 PUBG Mobile Gardenscapes 9 Brain Test NEW 9 Ludo King -4 +1 9 Playrix Unico Studio Gametion 9 Tencent Acrylic Nails 10 Rescue Cut 10 Brain Out -8 10 PUBG Mobile -7 10 NEW MarkApp Focus Apps Tencent Crazy labs Mobile Gaming 12 ©2021 Sensor Tower Inc.