News

Global food delivery app market to soar nearly 28% by 2023

February 19, 2019

By 2023, the global food delivery mobile app market that was put at $3.78 billion in 2017 should grow to a whopping $16.61 billion in value, which is a compound annual growth rate of 27.9 percent, according to Allied Market Research. It released findings from a report, this week, that broke down the market by deployment platform and end user to reveal opportunities and other intricacies of the rapidly expanding business sector. According to a news release, the report found that the following three main factors were driving phenomenal growth: 

• High internet penetration.
• Rising living standards in developing countries.
• Increasing mobile and smartphone use. 

Still, growth has been hampered somewhat by a lack of high-speed connectivity in underdeveloped and emerging economies, as well as the uncertainty of enterprises in developing their own applications. The report found, however, that opportunities existed in digitization investment and adoption of marketing strategies, as well as collaborations between various restaurants and application developers. 

The study also found that:

• Android segment had biggest share, but iOS CAGR was projected at 29.2 percent: Although the Android segment held the largest share in 2017 — contributing more than two-thirds of the total market share — the iOS segment should manifest the fastest CAGR going forward, projected at 29.2 percent through 2023.
• Food delivery market will soar over 5-year period:The food delivery market place segment was estimated to register the fastest CAGR of 28 percent by 2023. Indeed, in 2017, this segment also contributed more than four-fifths of the total market, thanks to vendors' global reach, little local-level competition and generally high internet penetration in developing countries. 
• Asia-Pacific grows fastest: Growth in the Asia-pacific region should increase 29.8 percent by 2023, and also held nearly half of the market share in 2017, as well due to increased technological adoption and food delivery apps in the countries like China, India and Japan. 
• Major players work to expand: The report also analyzed the major companies in the market, including Apple  Cognizant, IBM Corporation, Microsoft Corporation, SAP SE, CA Inc., Google,  Mendix, Red Hat, SAP SE, Zoho Corporation Pvt. Ltd. All have been vying for market dominance through strategies focused on growth and market strength.