Potential for nearly 5 million jobs in European apps by 2018

Five years ago Europe’s app sector did not exist, but by 2018 it could employ 4.8 million people and contribute €63 billion – in consumer spending, contract work and advertising - to the EU economy according to a new report published today (13 February).

The study, “Sizing the EU App Economy”, is part of Startup Europe, a Digital Agenda initiative supported by Commissioner Neelie Kroes to promote ICT and web entrepreneurship. The Commission is hoping example of the potential of apps will be a spur to “infuse EU countries with startup energy.”

The study reveals that the EU is more than holding its own in a sector that has “the air of a gold rush in the Wild West.” There are 28 companies in Europe that create 40 per cent of the top 100 grossing apps in the EU and US. Three of the top-five companies are Nordic games developers, King.com, Supercell, and Rovio.

Apps are also driving job creation, according to the report. To take one example, London-based Grapple Mobile, a three-person firm three years ago, now employs 120 people and has plans to double in size next year. Meanwhile, Golden Gekko (London/Barcelona) projects that it will grow its staff by 40 – 50 percent next year.

EU developers face more business challenges than technical challenges. Independent developers cite low prices or free apps as the biggest problem (40 percent of respondents), though customer acquisition costs (30 percent of respondents) also ranked above access to capital or financing (14 percent of respondents).

Despite all the positive news, there are still some items resting in Commissioner Kroes’ in-tray. Bottlenecks caused by uneven broadband rollout was a cause for concern amongst developers surveyed for the study. Resolving them will be “absolutely critical”, said Kroes, “As we shift to ever-more sophisticated usage of apps in healthcare and road safety sectors.

The report "Sizing the EU app economy" is available for download at this link.