Social apps log sharp growth

A report from consultancy Frost&Sullivan said the demand of young populations in emerging markets is driving rapid growth in the global social networking market and a concurrent shift to live video and voice applications.

The global live social market is expected to show a compound annual growth rate of 26.6 percent to more than triple in size from $19.7 billion in 2019 to $64.1 billion in 2024, the report said.

In the same period, the live social revenue from emerging markets is forecast to show a significantly higher CAGR of 41.7 percent, rising from $1.5 billion in 2019 to $8.6 billion in 2024.

"The proportion of the global live social revenue arising from emerging markets is forecast to grow from 7.6 percent in 2019 to 13.4 percent in 2024 as these markets account for a higher portion of live social market growth. Apps such as Uplive and Bigo are increasingly delivering products tailored to meet the needs of young users in emerging markets," said Gabriel Lu, a partner at Frost & Sullivan.

The growth of online dating apps in emerging markets is on track to far exceed that of developed markets. Lu said users in emerging markets generally prefer face-to-face communication to traditional text messaging.

"Cultural and religious customs in some emerging markets might frown upon in-person dating, leading young people to engage in relationships that are primarily or entirely carried out via video and voice chat," Lu added.