How Much Does It Cost to Build a Mobile App in 2024?

Mobile applications have become integral components of our daily lives. They are shaping the way we communicate, work, and access information.

As we enter 2024, we can see a significant boost in the number of people using a smartphone.

Between 2024 and 2029, the global number of smartphone users is expected to grow by 1.5 billion, marking a 30.6% increase. By 2029, it’s projected to hit a record high of 6.4 billion users, with consistent growth observed over the past years. ( Source – Statista )

Hence, the percentage of people using mobile apps in their day-to-day lives has also increased.

It has become necessary whether we talk about banking, grocery delivery, food delivery, shopping, etc. Everything has become a cup of tea.

Mobile apps ensure convenience, efficiency, and connectivity at your fingertips.

To harness the power of this cutting-edge technology, businesses must understand the current landscape of mobile app development costs in 2024.

You have questions like, How does it develop a mobile app, or how much does it cost an app? Well. This blog will answer all your questions. Just stay tuned.

Why Mobile App Development is Essential for Business Success in 2024?

Today, developing a mobile app to provide services is not just a trend but has become a strategic necessity.

Let’s discuss why mobile app development is essential for businesses to succeed in 2024.

Digital Transformation and Market Reach

Developing a mobile app is crucial in embracing digital transformation, which has reshaped industries worldwide.

In an era where consumers prefer digital interactions, having a mobile app expands your reach to a broader audience. It breaks geographical constraints associated with offline services.

Consumer Convenience and Expectations

It is essential to fulfill consumer convenience and expectations at best.

Users expect seamless and convenient services at their fingertips.

A mobile app offers a user-friendly interface and provides quick access to information.

This gives a personalized experience to users.

Competitive Edge and Innovation

Standing out in a crowded market requires innovation and strategy.

A mobile app can help you showcase your commitment to your users.

A mobile app allows you to implement cutting-edge technologies, differentiate services, and demonstrate a forward-thinking approach.

With mobile apps, it is easy to compete with businesses that are still operating offline and do not focus on providing online services.

Data-Driven Decision-Making

Mobile apps provide valuable insights into user behavior. It also helps analyze their preferences through the analytics you will get from a mobile app.

This data-driven approach empowers you to make informed decisions.

It optimizes your services and tailors offerings to meet the changing needs of your target audience.

Enhanced Customer Engagement

Targeting and engaging customers is easier and more effective through mobile apps.

Online look-tapping apps usually get high engagement rates as people explore various options before choosing one.

Features like push notifications, in-app messaging, and personalized content allow you to communicate with your audience constantly.

As a result, it fosters your brand loyalty and keeps your business at the forefront of their minds.

Revenue Diversification

Developing a mobile app opens up additional revenue streams.

You can ask people to pay to avail of your services.

For example, on-demand apps like entertainment apps charge users a subscription fee to watch content without ads.

They bifurcate their packages and give you services according to your chosen package.

You can diversify income sources through in-app purchases, subscriptions, or advertising opportunities.

Adaptation to Changing Consumer Behavior

If you have a mobile app for your services, it is easy to understand the changing consumer behavior.

You can adapt to these changes quickly by offering them precisely what they want.

Mobile apps become a channel for your business to remain relevant and accessible in an evolving market.

Streamlined Operations and Cost Efficiency

Mobile apps streamline various business operations and reduce manual efforts.

You must have a feature-rich app to provide the content users seek.

You cannot compromise with the app’s quality and efficiency.

From automated transactions to efficient communication channels, apps help you serve well.

Creating a mobile app in 2024 goes beyond just a tech move; you must conduct business analysis and develop a strategy accordingly.

It sets you up for growth, innovation, and relevance in today’s digital world.

Discuss with your business analysts how you will meet your audience’s growing demand and how your business will grow initially.

Types of Business Models in the App Industry

In the diverse landscape of the app industry, understanding the various business models is crucial for developers and entrepreneurs alike. Each business model offers unique opportunities and challenges, from direct consumer interactions to intricate B2B networks. Let’s discuss some of the significant models –

• B2B (Business-to-Business) Apps
• B2C (Business-to-Consumer) Apps
• B2B2C (Business-to-Business-to-Consumer) Apps
• C2B (Consumer-to-Business) Apps
• C2C (Consumer-to-Consumer)
• D2C (Direct-to-Consumer) Apps

B2B (Business-to-Business) Apps

These apps facilitate transactions, communication, and interactions between businesses or organizations.

It includes enterprise software, collaboration tools, and supply chain management systems.

Some great examples of B2B apps are e-commerce marketplaces like Amazon, Flipkart, and Walmart.

B2B apps focus on streamlining business operations and improving efficiency to increase productivity.

Examples of B2B model – MedUX, Alibaba, Amazon, Royal Brinkman, eWorldTrade, EcoEnclose

B2C (Business-to-Consumer) Apps

B2C apps are business-to-consumer apps. Here, the target audience is the end users.

In B2C, on-demand apps can provide end-users with products, services, information, or entertainment. For example

• E-commerce apps,
• Social media platforms,
• Gaming apps, and
• Entertainment streaming services

Let’s take the example of social media apps.

At first, social media apps like Instagram or Facebook were for end users, but they started offering businesses opportunities to provide their services through their platforms.

B2C apps prioritize user-friendly interfaces, engaging content, and seamless customer experiences to attract and retain customers.

Here’s a table describing B2B and B2C mobile apps along with approximate costs:

B2B2C (Business-to-Business-to-Consumer) Apps

These apps bridge the gap between businesses and consumers by enabling companies to offer products or services directly through a B2B intermediary.

Examples include white-label products or services sold by businesses to other businesses, which are then branded and resold to consumers.

B2B2C apps leverage partnerships and collaborations between businesses to reach a wider audience and generate revenue from both B2B and B2C channels.

Examples of B2B2C are Even Financial, DriveWealth, WORLDLINE Vetsource, and Amazon.

C2B (Consumer-to-Business) Apps

These apps are made for consumers to sell products or services to businesses.

It includes freelance platforms, where individuals offer their skills or services to businesses.

You can also consider it a crowdsourcing platform where consumers contribute ideas or solutions to businesses.

Some famous examples of C2B are Fiverr, Shutterstock, and Upwork.

C2C (Consumer-to-Consumer) Apps

C2C apps facilitate transactions or interactions between individual consumers. It includes –

• Online marketplaces,
• Classified ad platforms and
•  peer-to-peer payment apps

where users buy, sell, or exchange goods and services directly.

Some famous examples of the C2C model are eBay, Etsy, Craigslist, Ali Express, and Amazon Marketplace.

D2C (Direct-to-Consumer) Apps

D2C apps enable businesses to sell their products or services directly to consumers without the need for intermediaries like retailers or wholesalers.

These apps are commonly used by brands that want to establish a direct relationship with their customers.

Here, you don’t have to deal with the middle distributors; you can directly reach the end user. For example –

• Online-only clothing brands,
• Subscription box services and
• Digital-first consumer goods companies

D2C apps prioritize delivering a seamless and personalized shopping experience through data analytics and customer feedback.

By analyzing it. They prepare their marketing strategies and provide services according to individual preferences.

Some famous examples of D2C Models are – Myntra, Nike, Loreal, and Crest toothpaste.

How Much Does it Cost to Develop a Mobile App?

The development cost depends on several factors that must be discussed before coming to a final figure.

From the word factors I depict to the –

• Complexity of the app,
• It’s features,
• Platform requirements (iOS, Android, or cross-platform), and
• The level of customization

They all play crucial roles in determining the overall cost.

Additionally, emerging technologies such as augmented reality (AR), virtual reality (VR), artificial intelligence (AI), and blockchain integration also influence development costs.

Essential apps are low-cost, while more sophisticated and feature-rich applications require substantial investment.

They can range from tens of thousands to millions of dollars.

Moreover, ongoing support services and maintenance costs contribute to the total cost of ownership over the app’s lifecycle.

As technology evolves and market demands shift, businesses must carefully assess their requirements and budget accordingly for app development in 2024.

So, how much does it cost to develop a mobile app?

Let’s understand the cost of a mobile application development structure by considering $40/hour as the average price.

The app Development cost ranges from $40000 to $300000+ depending on your features and the hourly rate of developers.

Determining the cost to build an app hinges on understanding the features you’ll offer users.

These drive costs significantly, with some complex ones taking months to implement.

For instance, push notifications alone can consume half the budget, reaching hundreds of thousands in costs.

Let’s break down the cost for the app based on features and the number of development hours required for it:

Hardware Features:  These utilize device hardware like NFC or Bluetooth, ranging from 30 to 100 hours.

User Login: A crucial feature, its complexity can require 10 to 70 hours.

User Engagement: Features like SMS or push notifications span 25 to 145 hours.

Geolocation: For geolocation features, popular apps like delivery or map-related apps take 10 to 150 hours to develop.

Payments: Integrating payment gateways like Apple Pay or Stripe can demand 20 to 200 hours.

Cross-device Synchronization: Syncing data between devices takes 20 to 200 hours.

Data Encryption: Essential for compliance, it can require 10 to 80 hours.

Depending on complexity and customization, app development companies invest varying amounts for basic and flagship features.

Also, outsourcing mobile application development will be a strategic decision if you are new to the app development market and lack in-house skills.

Android Vs. iOS App Development

When discussing iOS or Android development, we understand that iOS caters to users willing to spend more.

Android caters to a user group less inclined to pay or subscribe to app services.

Various factors should be considered when deciding which app to use, including target audience, market share, development costs, and desired features.

Both platforms have distinct advantages and considerations.

The location where you make an app development team also matters regarding cost.

iOS App Development

Audience: iOS users typically belong to higher income brackets and are ready to spend more on apps and in-app purchases.

It would be best to prioritize iOS to maintain high subscription rates or compel users to purchase your app.

Development Environment: Apple’s integrated development environment (IDE) provides robust tools and resources for iOS app development. It’s known for its stability and ease of use.

Fragmentation: iOS devices have limited variations compared to Android. It results in less fragmentation. This simplifies app testing and ensures consistent performance across all devices.

Revenue Potential: Despite having a smaller market share, iOS users are likelier to spend money on apps. They are ready to make in-app purchases, which makes iOS apps potentially more profitable.

App Store Approval Process: The App Store has stringent guidelines and a thorough review process. You cannot compromise with the quality and security here.

Development Costs: iOS app development can be more expensive. This is due to the need for specialized hardware and higher developer fees for the Apple Developer Program.

Android App Development

Market Share: Android holds the majority of the global smartphone market share compared to iOS. It is the most preferred platform for reaching a broader audience. To target a large audience, develop an Android app.

Development Environment:  Android Studio provides a feature-rich environment for app development. It supports various devices and form factors that can enhance the app’s performance.

It supports various devices and form factors that can enhance the app’s performance.

Fragmentation: The Android ecosystem is highly fragmented. Numerous device manufacturers offer it in screen sizes and operating system versions, making application development and testing complex.

Open Source:  Android is an open-source platform. It offers excellent flexibility for customization and integration with third-party services.

Revenue Generation: One con of developing an Android app is that users are less likely to make in-app purchases than iOS users. However, the more extensive user base can still generate significant revenue opportunities.

App Distribution: Unlike iOS, Android apps can be distributed through various channels, such as the Google Play Store, third-party app stores, and direct installation.

Factors Influencing Mobile App Development Cost

Various factors affect the cost of mobile app development, such as platform type, app complexity, app UI/UX, development approach, and more. Let’s discuss each one.

Platform (iOS, Android, Cross-platform)

The first and foremost consideration is the Platform choice. It plays a significant role in estimating your app.

iOS app development cost is significantly higher than Android development.

However, Android offers a broader user reach, which can be a boon for your business.

Cross-platform app development can reduce cost, but you may have to compromise on performance and unique platform features. If it saves time and money, go for it.

Investigate current market trends regarding users’ platform preferences. This will help you decide which platform to use for your app development.

Discuss how platform popularity influences development costs and the strategic considerations businesses consider when choosing a primary platform.

App Type Complexity

Detailing the app’s type and complexity is crucial. Define the characteristics of simple, moderate, and complex apps. Please discuss with our development team and consider factors like features, user interactions, and app data processing requirements.

Please discuss this with our in-house development team to better understand app complexity. The cost varies depending on the type of app structure that you choose for the app.

Now, step by step, we will break down the cost of incorporating various features and functionalities. The more you add, the more you have to bear.

Discuss how innovative features or advanced functionalities can enhance your app. Whether you need to add these app features now or you want to add them later on, discuss everything.

Design and User Interface (UI/UX)

Discussing the visual Design and User Interface (UI/UX) is vital in app development.

A well-crafted UI/UX enhances user satisfaction and can also impact the overall efficiency of the development process.

Your app must be easy to navigate and should respond quickly. Compromise on these two factors will affect your app’s performance.

Here are a few feature-rich apps with intuitive designs that quickly grab user attention towards the app.

• Grocery delivery app
• Fitness app
• Health care app

Development Approach

The development process of a mobile app is critical, and you have to be more careful at each step.

After choosing your desired development type, between a native app and cross-platform, you must start developing the app. Your choice will determine its cost implications.

Native app development involves building separate apps for each platform. It may require a higher initial expense but will ensure optimized user experiences.

On the other hand, the development process of cross-platform mobile apps utilizes shared code for multiple platforms.

It would be cost-effective, but you might face performance issues later.

Here’s a table outlining the advantages and disadvantages of both native and cross-platform approaches:

Backend Infrastructure

The backend infrastructure is a critical determinant in mobile app development. It has a direct impact on performance, scalability, and security.

Scalability ensures the application can handle increasing user loads, while reliability and minimal downtime are paramount for a positive user experience.

Security measures, such as encryption and robust authentication, protect sensitive user data.

Well-designed APIs facilitate smooth communication between the mobile app and the server, enabling features like real-time updates.

Performance optimization, flexibility, and adaptability contribute to a responsive and adaptable backend.

Cost considerations and compliance with regulations further shape the selection of a backend infrastructure.

They are crucial for the app’s success.

Security Measures

Do not compromise with app security at any cost. Your app will contain user data, which should not be encrypted if you want to build trust among users. Prioritize app security in the development process.

Explore the possible financial impacts of security breaches and consider whether investing in proactive security measures is a cost-effective way to prevent these risks.

Focus more on security measures and discuss each relevant point related to security features with your development team, as they matter the most in today’s digital era.

Testing and Quality Assurance

In app development, the significance of testing phases cannot be neglected.

Quality checks must be done multiple times before launching the app.

Thorough testing allows for the early identification and resolution of issues.

It prevents costly rework later in the development process, which is budget-friendly.

It is suggested that a specific budget be allocated, especially for quality checks.

A well-executed QA strategy contributes significantly to app quality and ensures a bug-free app at launch.

By performing rigorous quality checks, developers enhance the user experience and mitigate the financial risks associated with post-launch.

Industry Trends Affecting Costs

Understanding industry trends is essential for developing an app. Let’s discuss some of the major trends here.

• Emerging technologies like AR, VR, and AI increase app development costs due to their complexity and the specialized skills required.
• Market demand affects development costs; high demand for skilled developers can raise prices, while oversupply may lower them.
• Developers’ skills and location influence costs; hiring developers in tech hubs is costly while outsourcing to lower-cost regions offers savings.

Emerging Technologies (AR, VR, AI, etc.)

Integrating emerging technologies such as Augmented Reality, Virtual Reality, and Artificial Intelligence (AI) dramatically influences development costs.

These cutting-edge technologies require specialized skills and resources, impacting the overall mobile app development cost. Special skills are valuable, hence their high investment demand.

The popularity and adoption rates of emerging technologies are very high. Today, users are looking for something different and techy that can ease their work and allow them to enjoy exercising.

Technologies that gain widespread acceptance benefit different economies greatly. As a result, the cost of mobile app development lowers as tools and expertise become more accessible.

Ensure your development team has specialized skills that can help you think beyond.

Market Demand and Supply

Market trends directly shape the direction of app development; hence, market research is crucial when entering the app development market.

Hence, it is necessary to have a keen eye on the trends to stay competitive.

The alignment of application development with market demands ensures relevance and can impact the product’s overall success.

Meeting market trends may involve additional research, development, and adaptation costs.

Apart from this, adapting to market demands may come with additional costs.

This will include expenses related to upgrading technology, expanding features, and optimizing performance.

All to meet user expectations.

Failing to meet market demands can result in lost opportunities and revenue.

Developer Skill and Location

Developers’ skill levels and expertise directly influence the project cost at a large scale.

Highly skilled developers demand higher salaries and bring advanced capabilities to the app development project at a considerable scale.

They are seasoned developers, hence highly capable of accelerating development and improving the quality of the final product.

In addition, the geographical location of development teams impacts costs due to variations in labor rates, overhead, and other regional factors.

For first-time entrepreneurs, offshore outsourcing can be cost savings compared to in-house development.

You can choose an app development company and share your requirements with them; they will handle everything.

It is also suggested that necessary factors such as communication challenges and cultural differences be considered.

Every tiny factor matters when you evaluate the overall cost-effectiveness of app development in different regions.

Popular Mobile App Development Examples and Their Costs

Let’s discuss the examples of popular apps and their development cost.

Instagram App Development Cost

Initially developed for iOS in 2010.

Instagram’s development cost was approximately $500,000.

Over time, it expanded to Android and web platforms.

They regularly update and upgrade their features to give users a seamless experience.

Uber App Development Cost

Uber’s estimated cost is $1.5 to $2 billion.

This includes app development, backend infrastructure, and continuous updates.

They also have user-friendly features which help them enhance their user experience.

WhatsApp App Development Cost

WhatsApp’s development cost was relatively low, around $250,000.

Its success stemmed from its simple yet effective messaging platform, leading to rapid user adoption.

Snapchat App Development Cost

Initially launched in 2011, Snapchat’s development cost was approximately $485,000.

This ephemeral messaging app gained popularity for its unique feature of disappearing messages and multimedia content.

Candy Crush Saga App Development Cost

Developed by King in 2012, Candy Crush Saga’s development cost was around $500,000.

This addictive puzzle game quickly became a global phenomenon.

Candy Crush has generated millions in revenue from in-app purchases, which is worth praising.

Slack App Development Cost

Slack’s development cost was estimated to be around $1 million.

Slack was Launched in 2013.

It has an intuitive interface and powerful features which sets it apart.

Its user-friendly UI/UX has led to widespread adoption in workplaces worldwide.

Tinder App Development Cost

Tinder’s development cost was estimated to be between $50,000 to $150,000.

It was Launched in 2012.

Tinder transforms the dating landscape with its simple swipe-based interface.

Its features make it easy for users to connect with potential matches in their area.

Here Are a Few Factors That Contributed to Their Cost-Effectiveness:

Efficient Use of Resources: Successful apps often allocate resources wisely.

They focus on core functionalities and user experience and minimize unnecessary features that don’t add much value.

Scalability: Apps designed with scalability can easily handle growing user bases and quickly evolve with technological landscapes without significant additional costs.

Lean Development Practices:  Adopting agile methodologies and iterative development processes helps find and resolve issues quickly, reducing rework and associated costs.

It can reduce rework and associated costs.

Strategic Partnerships:  Collaborating with third-party services or leveraging existing platforms can reduce the cost of mobile app development and accelerate time-to-market.

Monetization Strategies:  Implementing effective monetization strategies, such as in-app purchases, subscriptions, or advertisements, can offset development costs and drive revenue generation.

Check out the table showing the approximate cost of different mobile apps to discover how much it costs to develop one.

Note: Keep in mind that the figures provided above are estimates for the initial app version of your project. Depending on your project’s needs, it may require ongoing development and extend beyond the initial timelines.

Tips for Mobile App Development Cost Optimization

Utilize Cloud Services: Leverage cloud computing services like AWS, Google Cloud, or Microsoft Azure to reduce infrastructure costs. Pay only for the resources you use for app development.

Optimize Resource Usage: Monitor and optimize resource usage to minimize wastage and unnecessary expenses. This includes optimizing code, managing server capacity, and reducing data storage costs.

Outsource Non-Core Functions: Consider outsourcing non-core functions such as customer support, payroll processing, or IT maintenance to specialized service providers. This will save you a lot of money, and you don’t have to worry about quality support. The app development company you choose will handle all your non-core and core functions at their end.

Automate Routine Tasks: Implement automation tools and workflows to streamline routine tasks and processes. This reduces the need for manual intervention and saves time and labor costs.

Negotiate with Vendors: To obtain better pricing, discounts, and payment terms. Explore alternative suppliers to find the most cost-effective solutions.

Implement Lean Development Practices: Adopt agile and lean development practices to prioritize value-adding activities and minimize waste. This includes iterative development, continuous feedback loops, and early validation with users.

Monitor and Analyze Expenses: Regularly monitor and analyze expenses to identify areas for cost optimization. Use analytics tools and financial reports to track spending patterns and make informed decisions.

Invest in Training and Skill Development: Invest in training and skill development for your team to improve productivity and efficiency. Well-trained employees can work more effectively. It will reduce the need for external resources and expenses.

When you plan to make an app, it’s essential that you invest properly in training and getting specialized skills for your development team.

Focus on Long-Term Planning: Take a strategic approach to cost optimization by focusing on long-term planning and investments. Consider the potential ROI of different initiatives and prioritize those that offer the most outstanding value over time.

Future Trends in Mobile App Development

It is necessary to know everything in detail about the thing on which you are spending so much money. You have to discuss everything about its past, present, and future.

Here are the future mobile app development trends, which we will discuss in two parts.

1. Expected trends in app development costs
2. Factors likely to influence costs in the coming years

Expected trends in app development costs

Expected trends in app development costs are likely to fluctuate due to various factors. Here are a few factors that can help you understand the anticipated trends in upcoming years.

Increasing Complexity: A feature-rich app is usually more expensive than an essential app. Adding advanced technologies like AI, AR, and VR will improve the overall cost of your app. This is because of the complexity of implementation and the difficulty of hiring developers with specialized skills. Today, advanced apps quickly gain user attention and are more likely to succeed.

Demand for Security: With growing concerns about data privacy and cybersecurity, there will be a greater emphasis on incorporating robust security measures into app development processes. These measures could potentially increase the costs of implementing security protocols and compliance measures.

Cross-Platform Development: The demand for apps that work seamlessly across multiple platforms (iOS, Android, web) is expected to rise. This will ultimately lead to increased cross-platform development frameworks and testing costs.

Intresting Reads: Top 11 Mobile App Development Frameworks for App Development

Continuous Integration and Delivery (CI/CD): Adopting CI/CD practices for faster and more efficient development cycles may lead to initial investment in infrastructure and automation tools. However, it can ultimately save cost over time by reducing manual effort and deployment errors.

Outsourcing and Offshoring: The availability of skilled developers in emerging markets has increased. Today, you can hire anyone from any country based on their expertise and experience. Hence, outsourcing and offshoring the project to an app development company will continue to be a cost-effective strategy.

Factors likely to influence costs in the coming years

Technological Advancements: Emerging technologies like 5G, IoT, blockchain, and machine learning can affect the overall mobile app development cost. If you plan to introduce new capabilities in your app, consider this factor and make proper budget strategies.

Market Competition: Increasing competition in the app marketplace may drive up costs as businesses invest more in

• Differentiation,
• User experience enhancements and
• Marketing efforts

To stand out among competitors. You also have to prepare detailed and unique mobile app marketing strategies to promote your app in the market, for which you need to do thorough market research for the segment you are targeting.

Regulatory Compliance: Stricter regulations governing data privacy, accessibility, and security may require businesses to invest more in compliance measures and update their apps regularly to keep up with changing rules.

Talent Acquisition and Retention: The demand for skilled app developers will increase. It will lead to higher wages and increased competition for talent, which can drive up development costs.

Mobile App Development Cost: Final Thoughts

The importance of strategic planning in managing app development costs cannot be overstated.

When businesses plan things out carefully, like setting clear goals, deciding how much money to spend, and setting deadlines, they can stay on top of things and use their resources wisely.

Plus, strategic planning helps them find ways to save time and money.

Like using parts they’ve already made for other apps or focusing on features that users want.

Ultimately, an intelligent plan keeps costs down and ensures the app development project goes well and can last.