Social Networking App Market: Overview
In 2021, the global social networking app market was worth USD 39.3 billion, and it is predicted to increase at a compound annual growth rate (CAGR) of 23.1%. This can be attributed to the growing global demand for 5G technologies. As of June 2022, over 70 nations have 5G networks, up from only 38 at the beginning of 2020. The increased use of tailored feed-based apps is projected to drive market growth. Furthermore, the growing demand for encrypted and self-destructive messaging-based social apps is igniting the business's rise. In addition, rising demand for video chat services bolsters industry growth.
Furthermore, the simplicity of use of in-app purchase-based social networking apps increases their global appeal. At the moment, prominent firms are focusing on implementing video filter-enabled social networking apps. Overall, 38% of internet users globally reported utilizing their mobile devices and smartphones to make video calls. As a result, the social networking app market is predicted to increase significantly throughout the forecast period.
Meta's increasing investment to provide in-stream ad-free features for global clients is fueling market expansion. The rapidly expanding demand for free gaming subscription-based social networking apps has fueled the business expansion in the United States. 3D image context combined with augmented reality-based social media elements feeds corporate demands. The increased desire for large-screen interfaces with the dark mode is expected to drive the use of social networking apps. The market is projected to tilt dramatically toward advertising as expenditure on mobile devices increases. According to 2021 research, 79% of businesses have purchased paid advertising on Facebook. Since most personal and professional interactions take place on these devices, the expanding use of mobiles and tablets aids in successfully targeting potential audiences.
Social Networking App Market: COVID-19 Impact
With the lockdowns imposed by governments around the world, the COVID-19 outbreak has had a substantial negative impact on the social media sector in 2020. A viral illness called COVID-19 causes flu-like symptoms like fever, coughing, and breathing difficulties. The virus was discovered in the People's Republic of China's Hubei region for the first time in Wuhan in 2019. It quickly spread worldwide, including Western Europe, North America, and Asia. National governments' efforts to stop the transmission have led to a drop in economic activity, restricted trade in goods and services, and a lockdown in some nations. Businesses suffered throughout 2020 and into 2021 as a result of the outbreak. Since many media markets send their material remotely via digital networks, they haven't been impacted by this or even benefited from it. As a "black swan" occurrence unrelated to enduring or fundamental vulnerabilities in the industry or the global economy, it is anticipated that the social media market will recover from the shock throughout the prediction period.
Social Networking App Market: Drivers
Increasing Number of People Using Social Media to Increase Demand for Social Networking Apps
The growing number of social media users drives the market and will likely do so throughout the forecast period. According to the most recent social media figures, there will be 3.78 billion social media users globally in 2021. This allows social media networking organizations to collect customer data and conduct more in-depth customer behavioral research. The use of mobile phones, laptop computers, and computers with internet connectivity has grown over time. The world's smartphone user base is expected to reach 6.648 billion by 2022, representing 83.37% of the global population. This has had a significant impact on social media platforms. People have begun to use social media for communication, online shopping, and other social connectedness activities as digital technology have advanced. These have prompted businesses to implement social media analytics systems to understand better their customers' requirements and desires and the viability of their products. Nowadays, most people are glued to social media because it is a fantastic source of entertainment and news. As the need for social media grows, so does the market for social networking apps, which is likely to expand further.
Increased Focus on Targeted Marketing to Drive Market Growth
Businesses have adopted a more data-oriented approach to their marketing strategy due to the consistent reduction in the effectiveness of traditional advertising efforts and the rise in social media usage. The development of social media analytics has revolutionized how marketing campaigns are organized and executed today. Social media platforms like Facebook have recognized the value of focused advertising. They are now providing businesses with sponsored solutions that make location, demographic, and end-device data of consumers available for businesses to reach out to the targeted customer segment. Indeed, marketers increased social advertisement expenses by 32%, producing more ads than ever.
More companies may improve their methods for providing online customer service and even switch to new platforms like WhatsApp and Messenger, which may provide better technologies for customer service to flourish online. The launch of the WhatsApp Business API may yet be a major game-changer for the sector. More than 2 billion people use WhatsApp (2021). On WhatsApp, daily message exchanges exceed 100 billion. Thus the growing use of social media will open new opportunities for target marketing, driving the market's growth.
Social Networking App Market: Segment Overview
With Growing Android Smartphones Population, Google Play Store to Dominate Market
The Google Play Store segment's global market revenue share in the forecast period was the largest. Global connectivity, the greatest Android widgets, an open environment, adaptable online promotion for social networking apps, and a sophisticated multitasking system are reviving the market's expansion. The Android platform provides exemplary deeds. The proliferation of social networking apps in the Google Play store will increase their appeal in future years. According to the most recent statistics, there are presently 3.48 million apps in the Google Play Store. The rise of the e-commerce sector, various discounts and offers, and a product selection only available on e-platforms have contributed to an increase in the number of people purchasing mobile apps in recent years. Another factor increasing mobile application downloads across all platforms is the availability of inexpensive data plans and packages from telecom carriers, which lowers the cost of the internet and attracts more online users.
Social Networking App Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Growing Social Media Population
The Asia Pacific contributed the most to the worldwide social networking app in the forecast period due to the increasing acceptance of social media integration in developing economies like China and India. The use of technologically complex video reel-based apps with support for video editing is a growing trend in China, boosting the industry's expansion. There are now more than 600 million daily users of Tiktok, the reel-based app, in China. The growing demand for AI-based social networking applications for business networking is what drives India's market share. Mad Street Den is one of India's first AI and computer vision startups. The Chennai-based business intends to integrate AI into consumers' daily life in various industries, including social media, mobile gaming, online fashion, IoT and linked vehicles, user engagement & analytics, and IoT and connected automobiles. Introducing such an AI-based startup in India will fuel the region's growth of AI-based social networking. In the future, personalized suggestions of social networking apps with cutting-edge virtual platforms will help the market expand. Additionally, it is projected that the growing demand for unique camera accessories will accelerate market growth.
During the projected period, Europe is expected to see a decent CAGR. This is explained by the rising demand for picture and video editing tools among customers in Germany and the United Kingdom. Using the push-to-talk feature for live texting is a growing trend in France. Initiate Group Chat, and theme-based social networking apps are becoming increasingly popular in Germany, which is expected to accelerate market growth throughout the forecast period. With so many people using various social media platforms, businesses like Amazon, IBM, and Oracle have been using social media analytics to produce insights and better understand customer behavior, informing their business and strategic decision-making.
Global Social Networking App Market: Competitive Landscape
In July 2022, Reddit announced the acquisition of MeaningCloud, a natural language processing business, for an unknown sum. The MeaningCloud team has joined Reddit and will assist with machine learning initiatives across its product, safety, and advertising teams. Reddit's first office in Spain has been acquired. In October 2021, VerSe Innovation, India's local language technology platform, announced today the acquisition of GolBol, a social networking app developed in India. VerSe, which recently celebrated the first anniversary of its short-video app Josh, will bring on board GolBol's complete team, including co-founders Shanu Vivek, Karandeep Singh Gujral, and Kaushik Mahato, to help speed work to modernize and double the effect of Josh.
Some players in the Social Networking App Market include Reddit, Meta, Twitter, Meet Up, Tapebook, Tumblr, Viber, Whisper, Line, and Yubo.
Global Social Networking App Market is Segmented as Below:
By Marketplace Outlook
Key Elements Included In The Study: Global Social Networking App Market
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