The Evolving App Store Ecosystem
We are back with an update to appstoresoftheworld.com to reflect the evolving app store ecosystem. Commissioned by the UK’s Department for Science, Innovation and Technology (DSIT), we have now mapped a total of 155 stores, up from 111 when we originally looked at this in 2022. We have conducted this research to help inform how the environment is shifting, based on the data available.
Globally, app stores are primarily headquartered in the US and China, hosting 40 and 23 stores respectively. Both countries can attribute this to a significant number of large tech firms being located in those places, while China has unique characteristics, illustrated by the blocking of the Google Play Store. This last aspect has resulted in a race to gain users on independent stores.
App store density can be seen in the map below and can be explored interactively on appstoresoftheworld.com.
So, how has the market changed? Many smaller stores have struggled to survive, with many closing and not specifying the reason why. They are competing in a ruthless market where convenience is the biggest factor for users. If your store has nothing special to offer it will struggle to compete in this environment. Despite this, plenty of new stores are throwing their hat in the ring.
App store distribution across the world
The EU Digital Markets Act (DMA) has enabled the creation of several new app stores for European iOS users. These new platforms are trying to compete by offering strong incentives to publishers, by reducing the commission rates that are taken by app stores on application and in-game purchase fees. The host operating system platforms of these applications take different fees from these new third-party app stores, a subject which is still evolving. The commission taken has been a driving factor for publishers to develop their own, home-grown stores, a dynamic that can be explicitly seen in the Desktop gaming market. Several new stores including the Xbox desktop app and the Riot Client are providing platforms so that their in-house publishers aren’t subject to the fees of other platforms.
Some observations from the rest of the world
Even when a store is targeted towards underserved regions, the operational realities are complex. The Gara Store, designed for African markets, enables more localised payment methods which other platforms don’t support. Yet, this store is not developed locally instead being maintained and produced in France. This is not an uncommon scenario but reflects the idea that to gain developers and users while surviving in the ecosystem these stores need to bring something that the most convenient platforms can’t or won’t offer.
App stores are also directly tied to geopolitics. Sanctions placed on Russia and Iran have resulted in the development of several homegrown platforms like RuStore and Cafe Bazaar. The creation of these stores shows how important app stores are in people’s day-to-day lives, while also highlighting how countries can exert digital sovereignty.
The combination of regulation and the evolution of the app store ecosystem, including the early signs of agentic AI related marketplaces emerging, all illustrate that the market is changing rapidly. The datasets for how app stores are currently, and were previously, distributed across the globe can also be found on the site appstoresoftheworld.com under a CC 4.0 licence. If any stores are missing, please get in contact at appstores [@] copperhorse.co.uk.
