June 2014

Did you Know?

Mobile Apps are the future! Today the app economy employs 1 million developers, and 800,000 people in marketing & support posts. This is estimated to rise to 2.7 million developers + 2.1 million support staff by 2018. EU buyers and advertisers spent €6.1 billion on apps in 2013, growing to €18.7 billion in 2018.

EDC News: EU App Economy – Our future!

Mobile evolution - in the beginning there were mobile phones which were used for talking to people, then there was text messaging, now they’re mini-computers.

The drastic improvement of Mobile technology, storage and battery time has lead to the multifunctional use of the mobile phone which, in turn, has opened a market niche for a new type of computer program – The “app”. Apps (short for application software) are designed to run on smartphones, tablet computers and other mobile devices. These programs range from anything between computer games, shopping on-line, reading, watching movies, designing presentations to social media.

Over the last five years the development and use of apps has increased radically (download of apps totalled around 100 billion) and, in turn, opened up a new source for job opportunities. A research report “European App Economy” analysed the relative sizes of the app market in the European Union, tracking app revenues and jobs generated by the app economy in the EU28.

In the EU28, the report estimated that the App Economy contributes to:

• 794,000 jobs across the whole economy

• 529,000 direct App Economy jobs, 60% of which are developers

• 22% of the global production of app-related products and services comes from the EU

• Revenues of more than €10 billion per annum

These results represent only the initial picture of apps and their effects. It is believed that these results will increase exponentially; according to a report “ Sizing up the EU app economy ” presented in Brussels by 2018 it could employ up to 4.8 million people and contribute €63 billion to the EU economy.

In light of these new developments, concerns were raised by Neelie Kroes, Vice-President of the European Commission, with regard to:

• Connectivity – European telecoms are yet to be standardised, leading to poor wireless connectivity, connections that can't easily cross borders, apps and services that are blocked or throttled by network operators, prohibitive surcharges when using mobiles abroad. This is a serious issue as all apps and all mobile devices rely on broadband networks.

• Fragmentation – Conflict between developers regarding the implementation of 4G in Europe. Also, lack of interoperability between platforms like Android, iOS, Facebook and dependency on American companies.

• Europe's digital skills crisis

The Commission is striving to address these issues:

• Development of digital skills – this is being addressed by:

  • partnering with industry and other organisations in the Grand Coalition for Digital Jobs (see IP/2014/40)

  • working with schools to bring digital skills right into the connected classroom (see IP/13/859 and MEMO/13/813)

  • supporting grassroots initiatives such as EU Code week (learning to code for developing apps, websites, etc). This year's Code week will take place on 11-17 October 2014

• Simplifying EU rules on copyright and licensing to deliver greater access to online content. An ongoing consultation will feed into a white paper on copyright due before summer 2014.

• Improving connectivity through the Connected Continent proposal for a single telecom market (for the European Parliament debate see MEMO/13/779 and IP/13/828).

• Encouraging the development of ICT businesses – through the Digital Agenda initiative “Startup Europe” (part of the Entrepreneurship 2020 Action Plan), which offers support and funding for web and ICT entrepreneurs. This initiative includes six activities to reinforce the links between people, business and associations who build and scale up the startup ecosystem, to provide role models and funding:

  • Accelerator Assembly

  • European Crowdfunding Network

  • Web Investors Forum

  • Leaders Club

  • Startup Europe Partnership

Alternatively, funding and mentoring can be provided through the Future Internet Public Private Partnership (FI-PPP). Funding is also available through Horizon 2020.