Mobile App Ecosystem & COVID-19: Adaptation in 2021

The Ongoing Impact of COVID-19 on the Mobile App Landscape

According to a recent annual report by Sensor Tower, a leading app intelligence company, the COVID-19 pandemic continues to exert a significant influence on the mobile app ecosystem. Initially, the pandemic spurred rapid growth in usage for apps related to online shopping, entertainment, business, and education.

Despite the global easing of restrictions, app store trends haven’t fully normalized. Certain app categories are still experiencing download volumes considerably higher than those recorded before the pandemic. Conversely, other categories are still struggling to regain their former levels, as detailed in the new report.

Significant Declines in Travel and Navigation Apps

The pandemic severely impacted travel apps due to border closures, event cancellations, and restrictions on tourism. Furthermore, the widespread adoption of remote work diminished the need for ridesharing and commuting-related applications.

Collectively, the travel and navigation app categories suffered the most substantial declines, experiencing approximately a 40% drop in installs in April 2020 compared to 2019 figures.

The performance of the travel sector remains closely tied to the fluctuations of COVID-19 cases. A resurgence in travel occurred during the summer months, leading to increased app downloads.

By July 2021, travel app downloads had almost reached 2019 averages. However, the emergence of the Omicron variant caused these gains to diminish. As of December 2021, travel apps were down 14% compared to 2019, while navigation apps experienced a 22% decrease.

Long-Term Shifts and Emerging Trends

Some app categories were less affected by pandemic-related surges and may reflect more enduring shifts in user behavior. Business apps exemplify this trend.

Installations in this category have remained elevated as numerous companies have embraced remote work or postponed their return-to-office plans. In 2021, business app download growth exceeded pre-pandemic levels by over 102%.

Medical apps also witnessed increased usage during the pandemic. Growth in this category was up 187% in December 2021 compared to the monthly average in 2019, potentially reflecting ongoing concerns about the virus.

Other categories, including Games, Health & Fitness, and Education, continue to benefit from pandemic-driven growth, albeit to a lesser extent. They are up by 39%, 31%, and 19% respectively, compared to 2019 levels.

Sports apps rebounded quickly with the resumption of leagues in the latter half of 2020, and saw a modest 3% increase in 2021 over 2019 levels.

Regional Variations in App Download Normalization

The pace of app download normalization has varied across different regions. North America experienced the fastest return to 2019 levels.

In contrast, the pandemic’s effects persisted longer in Asian markets, where game downloads remained nearly 40% higher than pre-pandemic levels as of Q4 2021, and travel app installs were still down by 25%.

Within the U.S., certain travel apps, such as those for airlines, vacation rentals, and travel agencies, have surpassed pre-pandemic levels, while navigation and rideshare apps continue to lag.

European markets are beginning to show signs of recovery, but most travel subcategories remain below their pre-pandemic totals, as do navigation and ride-sharing apps.

Sensor Tower clarifies that its data excludes pre-installed apps from Apple and Google, as well as third-party Android app stores beyond Google Play.

Additional Trends and Consumer Spending

The report also highlights other notable trends from 2021, including the increasing adoption of mobile platforms by the cryptocurrency sector, which drove 35% year-over-year growth for the finance category by Q4 2021.

In the gaming realm, Garena Free Fire emerged as the most downloaded game, surpassing 2020’s top performer, Among Us, and 2019’s winner, PUBG Mobile.

Increased app usage has translated into record levels of consumer spending. App stores generated $28 billion in revenue during the third quarter of 2021 and were projected to reach $133 billion for the entire year.