App sector to support 5 million jobs by 2018
It is anticipated that the EU’s app sector could employ as many as 4.8 million people and contribute €63bn to the EU economy by 2018, according to a new report from Brussels.
The study, carried out by GIGAOM and NUI Galway for the European Commission, shows that Europe’s app developers are up to the challenge of taking the global lead. Currently, EU and North American developers generate the same levels (42% each) of app revenues in crucial EU and US markets. Although the future is bright, developers have raised concerns about the skills gap, connectivity, and fragmentation, which could put the app boom at risk.
Currently, the app economy employs one million developers as well as 800,000 people in marketing and support posts. It’s anticipated this could rise to over 2.7 million developers by 2018. EU buyers and advertisers spent €6.1bn on apps in 2013, 30% of total global app spending, growing to €18.7bn in 2018. Consumer spending combined with advertising and contract work could lead to €63bn annual revenue for the app sector within five years.
Neelie Kroes, Vice-President of the European Commission, said “In the face of increasing youth unemployment, these figures give me new hope. The app sector is one area of the digital economy where Europe can really lead. But we have to address concerns about connectivity and fragmentation – yet another reason to complete the telecom single market!”
A contractual public private partnership on ’5G networks for the Future Internet’ is expected to assist with funding and mentoring web entrepreneurs that use the technologies developed in previous projects. Funding will also be available through Horizon 2020.
