Social Networking - Europe

Europe

The Social Networking market in Europe is set to witness substantial growth in the coming years.
According to projections, the total revenue in this market is expected to reach US$14.21bn by 2022.
This indicates a significant potential for expansion and development within the region.
Furthermore, the market is anticipated to register an annual growth rate of 4.41% from 2022 to 2027, resulting in a projected market volume of US$18.86bn by the end of the forecast period.
This demonstrates the sustained demand and increasing popularity of social networking platforms among users in Europe.
When we delve into the revenue breakdown, it is evident that various revenue streams contribute to the overall market performance.
In-app purchase (IAP) revenue is projected to reach US$1,581.00m in 2022, highlighting the willingness of users to make purchases within social networking applications.
Additionally, paid app revenue is estimated to reach US$5.95m in 2022, indicating a potential market for premium social networking applications.
Moreover, advertising revenue is projected to reach US$12,630.00m in 2022, underscoring the significance of advertising as a revenue source within the social networking market.
The number of downloads in the Social Networking market is also expected to experience substantial growth, reaching approximately 0.93bn downloads in 2022.
This reinforces the notion that social networking platforms continue to attract a large user base in Europe.
Currently, the average revenue per download stands at US$15.26.
This metric showcases the value generated per user download and serves as an indicator of the profitability of the social networking market.
In a global context, it is worth noting that in China leads the market in terms of revenue generation.
In 2022, in China is projected to generate a staggering US$49.67bn in revenue from the Social Networking market.
This highlights the immense size and potential of the Chinese market in the social networking industry.
In conclusion, the Social Networking market in Europe is poised for significant growth, with projected revenue reaching US$14.21bn in 2022.
The market's expansion is expected to be driven by various revenue streams, including in-app purchases, paid apps, and advertising.
Additionally, the number of downloads is set to rise, reflecting the sustained popularity of social networking platforms among European users.
However, it is important to acknowledge the dominance of in China in terms of revenue generation, emphasizing the global nature of the social networking market.

Key regions: China, Europe, Asia, South Korea, India

Market

Region

Region comparison

Currency

Analyst Opinion

Since the start of Apple, Inc.'s App Store in 2008 with around 500 apps, mobile apps have come to dominate the digital economy and have quickly outpaced the demand for desktop applications. As of 2021, the Apple App Store and Google Play Store had more than 5 million apps combined. Because many apps from the West are not available in China, many new app stores have emerged there. Digital lifestyles around the world now depend on adopting mobile apps, especially when it comes to social networking. The games industry has also been thoroughly transformed by the app revolution and is demonstrated by the fact that the games category is the largest and highest-grossing app category.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on revenue from in-app purchases, revenue from the purchase of apps, and revenue from advertising, as well as the number of downloads for each app category.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use market data from independent databases and third-party sources, current trends, and reported performance indicators of top market players. In addition, we use relevant key market indicators and data from country-specific associations, such as smartphone users and mobile broadband connections. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward apps.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year in case market dynamics change.