China’s mobile application market is poised for continued growth globally, driven by innovation from Chinese developers across various sectors, according to Wang Wei, general manager of mobile analytics firm AppsFlyer Greater China. While gaming has traditionally been a major pillar of China’s app exports, non-gaming sectors, especially financial technology, are now leading growth. Other fast-expanding categories include tools, social platforms, and general entertainment apps.
“Short dramas, which gained popularity last year, continue to flourish, while AI-powered tools and social products present additional growth opportunities,” Wang noted, adding that these trends are likely to continue in the coming year unless there are major disruptions.
According to AppsFlyer’s latest data, Chinese apps were installed 15 billion times globally from Q1 2023 to Q3 2023, which averages out to two apps per global user. This represents an 11 percent year-on-year increase in app installations during the first three quarters of 2023, a significant achievement amidst global economic uncertainty.
Although gaming continues to dominate Chinese app exports, its share has fallen from 70 percent three years ago to 50 percent, reflecting a faster growth in non-gaming sectors such as finance, social apps, tools, and entertainment.
As more Chinese companies expand internationally, they are not only contributing to the global mobile app market but also leading innovation, particularly in user acquisition strategies. In response to disruptions caused by iOS privacy policies, Chinese companies pioneered a new “web-to-app” strategy, which directs users from a webpage to an app download landing page. This innovative approach has helped mitigate growth challenges, enabling Chinese companies to sustain their momentum.
Ronen Mense, president and managing director of AppsFlyer Asia-Pacific, expressed confidence in the Chinese market, even in the face of economic slowdown and geopolitical challenges. He highlighted that AppsFlyer has benefited from its long-standing focus on China, noting the country’s mobile internet leadership and its strong engineering talent pool. Mense projected annual growth of 15 to 20 percent for AppsFlyer in China over the next few years, driven in large part by advancements in artificial intelligence (AI), which he believes will allow companies to innovate more quickly and efficiently.
In response to increasing demand for AI-driven solutions, AppsFlyer is developing AI-based products such as creative analytics and fraud detection tools to better serve the needs of Chinese companies expanding overseas. Despite the challenges, China will remain a “critical” market for AppsFlyer, according to Mense, and will continue to play an important role in the company’s growth strategy over the next decade.