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Smartphone App Developers in Australia - Market Research Report (2014-2029)

Michael Doyle Michael Doyle Melbourne, Australia Last Updated: October 2024 ANZSIC OD5150

Revenue

$2.8bn

2024-25

$2.8bn

Past 5-Year Growth

Profit

$XXX.Xm

Employees

10,246

Businesses

723

Wages

$X.Xbn

Smartphone App Developers in Australia industry analysis

Smartphones have become deeply entrenched in Australian society, with the majority of the population owning and using them frequently. This widespread adoption has driven businesses to develop their own apps and advertise through popular platforms, boosting demand for app developers and increasing revenue. The popularity of online shopping, particularly spurred by the pandemic, has also fuelled the creation of new apps and widened profit margins. Despite rising demand, outsourcing app development to countries with lower labour costs has subdued growth in the Australian Software App Developers industry. While outsourcing can reduce expenses, it also carries risks of poor quality and communication challenges, highlighting the competitive advantage of domestic developers. Industrywide revenue is expected to expand at an annualised 2.3% over the five years through 2024-25, reaching $2.8 billion in the current year, when revenue will climb by an estimated 1.0%.

Trends and Insights

  • Smartphone use is widespread in Australia, with the majority of the population using them extensively. This has driven businesses to develop their own apps and invest in app-based advertising, stimulating demand for app developers and boosting industry revenue.
  • The game app segment has experienced substantial revenue growth, benefiting from high user retention rates. Smartphones have become a convenient alternative to console gaming, driving revenue through sales, in-app advertising and freemium models.
  • New South Wales leads smartphone app development, driven by the state’s robust economic activity. Sydney’s status as a business hub offers access to cutting-edge technology and market trends, attracting developers and key companies like Atlassian.
  • The Smartphone App Developers industry is highly fragmented because of its low barriers to entry. Minimal start-up costs, accessible development tools and the ability to self-teach coding skills encourage many small companies to enter the market, exacerbating fragmentation.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 2.3 % over the past five years, to reach an estimated $2.8bn in 2024.

Trends and Insights

Smartphones' entrenchment in society boosts growth, but also creates intense competition

  • The rising prevalence of smartphone use has boosted demand for mobile applications, driving revenue growth for the Smartphone App Developers industry. Applications now provide businesses with diverse revenue streams, including in-app purchases, subscriptions, advertising and premium sales.
  • Additional trends and insights available with purchase
Smartphone App Developers in Australia
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The market will reach saturation eventually, encouraging innovation

  • At some point in the future, virtually all people will have a smartphone and the app market will become saturated. This will make it difficult for new apps to stand out, discouraging their creation and threatening demand for developers.

Biggest companies in the Smartphone App Developers in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
Atlassian
272.3
Electronic Arts
79.0
My Muscle Chef
57.6

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Smartphone App Developers in Australia
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Game apps, Entertainment apps and Organisational apps. Game apps is the largest segment of the Smartphone App Developers in Australia.

Trends and Insights

Game apps have regained popularity, pushing this segment's sales upwards

  • Game apps include board games, puzzles, arcades, cards and other games.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Smartphone App Developers industry businesses develop and publish apps for smartphones and mobile devices, including wearables and tablets. Apps are sold in app stores specific to a device’s operating system.

What's included in this industry?

Game appsEntertainment appsOrganisational appsFinancial appsDirectory, classifieds and online shopping apps

Companies

AtlassianElectronic ArtsMy Muscle Chef

Purchase this report to view all 3 major companies in this industry.

Related Terms

FREEMIUMIN-APP PURCHASESSMARTPHONEB2B

Industry Code

ANZSIC 2006

ANZSIC 5420 - Smartphone App Developers in Australia

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Smartphone use is widespread in Australia, with the majority of the population using them extensively. This has driven businesses to develop their own apps and invest in app-...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The game app segment has experienced substantial revenue growth, benefiting from high user retention rates. Smartphones have become a convenient alternative to console gaming...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

New South Wales leads smartphone app development, driven by the state’s robust economic activity. Sydney’s status as a business hub offers access to cutting-edge technology a...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The Smartphone App Developers industry is highly fragmented because of its low barriers to entry. Minimal start-up costs, accessible development tools and the ability to self...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Low barriers to entry have resulted in high industry fragmentation. App development offers ample opportunities for small companies to focus on niche services.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Atlassian's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Electronic Arts's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of My Muscle Chef's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for Atlassian, and factors influencing its performance in the industry
  • Description and key data for Electronic Arts, and factors influencing its performance in the industry
  • Description and key data for My Muscle Chef, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The rise in online shopping demand offers significant opportunities for smartphone app developers. As more Australians turn to online shopping, retailers collaborate with dev...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Smartphone app developers' profit margins have widened, driven by increased smartphone usage and app demand. Businesses have ramped up digital advertising and app creation, a...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Smartphone App Developers industry in Australia in 2024?

The market size of the Smartphone App Developers industry in Australia is $2.8bn in 2024.

How many businesses are there in the Smartphone App Developers in Australia industry in 2024?

There are 723 businesses in the Smartphone App Developers industry in Australia, which has grown at a CAGR of 6.9 % between 2019 and 2024.

Has the Smartphone App Developers industry in Australia grown or declined over the past 5 years?

The market size of the Smartphone App Developers industry in Australia has been growing at a CAGR of 2.3 % between 2019 and 2024.

What is the forecast growth of the Smartphone App Developers industry in Australia over the next 5 years?

Over the next five years, the Smartphone App Developers industry in Australia is expected to grow.

What are the biggest companies in the Smartphone App Developers market in Australia?

The biggest companies operating in the Smartphone App Developers market in Australia are Atlassian, Electronic Arts and My Muscle Chef

What does the Smartphone App Developers in Australia include?

Game apps and Entertainment apps are part of the Smartphone App Developers industry.

Which companies have the highest market share in the Smartphone App Developers in Australia?

The company holding the most market share in Australia is Atlassian.

How competitive is the Smartphone App Developers industry in Australia?

The level of competition is high and increasing in the Smartphone App Developers industry in Australia.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Australia include:

  • Australian Bureau of Statistics
  • Australian Taxation Office
  • Australian Securities & Investments Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.