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Mobile App Development Cost: Understanding The App Budget By App Type in 2022

Understanding The App Budget By App Type

Wondering how much does it cost to create a mobile app for Android or iOS? Calculating the average cost to build a brilliant mobile app always remains a mystery for businesses. Still, this blog has gathered some facts, stats and parameters that help you understand what contributes to app development cost and breakdown of the budget by app type. 

In recent years, technology and innovations have boldly paved their way in every business vertical and have drastically changed the way people access things. As customer psychology evolves, organizations need to adopt strategies that help them reach where their customers are. That’s where businesses are moving towards mobile app development solutions at a fast pace.

Startups and business enthusiasts are agreed with this fact but at the same time are in doubt with some questions like:

  • Why Startups and SMEs Should First Invest In Mobile Applications?
  • What Type of Application Should You Build To Add An Edge To Your Business?
    • App Types With In-Depth Breakdown of Budget
  • Major Factors Affecting The App Development Cost
    • App Development Cost- Benchmarks
    • Hidden App Development Cost Driving Factors
  • Conclusion: Build a Mobile App On a Limited Budget and Timeline Without Losing the Quality

Let’s explore each point in-depth:

Why Startups and SMEs Should First Invest In Mobile Applications?

While the mobile-first approach has become essential for a successful business, many are still behind in adopting a mobile app strategy. Where mobile apps can help promote a brand and increase traffic, on the other hand, also allow building foster customer relationships and increasing user retention. If you are still managing your business without a mobile presence, then you will be definitely missing the significant marketing opportunities and soon be thrown out from the cut-throat competitive market. 

You don’t need to take our word. Here are some stats and facts representing the changing behaviour of customers, the economy of the mobile app industry and the future scope of businesses.

Market Statistics of Mobile App Development Industry and Survey Reports

  • As per Statista reports, global mobile app downloads have reached 218 billion in 2020.
  • According to the statistics, the average consumer spending on mobile apps in Q2 will be 5.31 USD in 2021. 
  • By 2021, there will be roughly 7 billion mobile users worldwide. 
  • As per the survey report, the app store has reached $143 billion worldwide in 2020 and is expected to increase by 20% year by year. 
  • 92% of mobile time is spent on mobile applications, whereas 8% of users access web browsers. 
  • As per the survey report, it is expected that 92.3% of smartphone users will be using voice assistants by 2023.
  • It is predicted that the mobile app development industry will generate $935 billion by 2023.

In a nutshell: With these statistics and survey reports, it is safe enough to say that mobile apps are the key to success for your business in 2022. At this point of the game, many organisations have recognised the importance of having a mobile business app and are influenced to build an application that helps in generating more revenue. 

However, just having a mobile app idea is not enough to get a competitive edge to your business. So before you rush to hire a mobile app developer, it’s time to shift your focus to launch a product that ensures better solutions and delivers more value to the customers. Many organisations fail to consider the key trends and patterns that can manifest into potential opportunities. Therefore, when it comes to developing a mobile app, you need to understand:

  • Type of application that fit your business requirements;
  • It must have the potential to lead to tremendous success;
  • Help you reach your business goals and quench the needs of end-users;
  • Delivering value and meeting the customer expectations
  • Add a competitive edge to your business

Let’s assume that you are convinced enough to build a mobile app but not sure what type of app you can develop? So after evaluating the app development trends and market statistics, we have rounded up a few most successful app types and their breakdown of budget and time.

What Type of Application Should You Build To Add An Edge To Your Business?

When it comes to developing a mobile app and evaluating how much it costs to create a mobile app and how much time it takes to develop, the first thing is to decide what type of application you want to make.

Don’t get confused!

Simply put, the type of application is the most significant app development cost affecting factor. Since different businesses have different needs, there is no standard application that fits all. There will be a definite difference in app development cost when developing and using other technologies, features, and strategies. 

So before you jump on the benchmark of app development cost factors, it is worth understanding the app budget by app type:

1. Basic App Development With No Backend

Basic apps are the most simple apps that usually take 4 to 5 months without a backend and can be accessed without network connectivity. At the same time, these are not a popular category among businesses. Since mobile app stores are flooded with apps that offer advanced yet modern functionalities, basic apps were the concept of the old days. But such basic apps like calculators, clocks, local games, and more still hold importance.

To create basic apps, you barely need a budget of USD 10,000 to 12,000+ USD

2. Informative or Data-Driven Mobile Application With Moderate Connectivity

Data-driven apps can be explained in a way that consumes data and processes only specific information like weather reports, calendars, stock market updates or maps. A decade ago, hiring an app development company to create such informative apps required an expensive budget and time, but now there are multiple APIs available that not only make the task easier and faster but also budget-friendly. These apps are not that popular today but still exist and are in use. Now, these types of applications have become an extension of such large apps. 

For example, developing a travel booking app that provides an in-app calendar and weather forecast report of particular days you are looking for travel.

The average timeline to create data-driven apps usually falls between 3 to 5 months and may cost around USD 12,000 to USD 15,000+

3. Startup Apps/ MVP Solution

Startup apps or MVP solutions are developed with the lowest budget and include basic features and functionalities that address the basic needs of the users. Business enthusiasts planning to migrate their brick and mortar business to the digital platform but running short of budget and time can consider an MVP solution as an ideal option. Firstly they can get started with a limited budget, quickly market their app, and lastly, MVP solution will help you analyse the User feedback. Considering the reviews and ratings of the app, you can scale up the app with additional features and functionalities later.

The average cost to create an MVP app solution starts from USD 17,000 to USD 20,000+ depending on the business requirements.

4. Social Networking Apps

Undoubtedly, social networking apps have become a hot topic and boldly dominate the mobile app industry. Social networking apps provide a platform to interact with each other and instantly connect with your friends, family members and more by exchanging text, sharing images, videos or more. Since vast data is processed through these apps, it makes sense to hire an app developer for a robust backend. Usually, business enthusiasts prefer to launch with basic features as developing a full-fledged app like Instagram or Facebook will take years to build and require a considerable budget.

So launching a social networking app with the features like user log in, share stories, text SMS, audio/video calling, reels, stories, and more will be a big suggestion.

The average cost to launch a basic social networking app will range between USD 25,000 to USD 35,000+

5. Ecommerce Mobile App

After 2020, if an app category has witnessed enormous success, then that is only shopping apps. 

According to the survey reports, millennials have spent 82 billion hours in shopping apps in 2020, a 30% rise from 2019. Moreover, Americans have spent $53.2 billion on mobile retail apps.

So business enthusiasts working with a conventional retail store are missing out on potential customers. That’s where ecommerce mobile apps can be a game-changer for them that are developed with user login, product catalogue, Wishlist, Cart, Payment integration and more features. The perfect example of these apps is eBay, Amazon, Etsy and more which require a proper Admin panel and backend team to make your app work flawlessly. 

The average cost to create an ecommerce app like Amazon will be ranging from USD 25,000 to 35,000 USD and will take around 7+ months for app development.

6. On-Demand App Development

In recent years, on-demand mobile apps are conquering the global market and have become an industry of trillions. Businesses from all sectors are investing in on-demand mobile apps. Still, these apps are composed of complex structures and have the functionality of social apps, user login, communication components, delivery panel, admin and more.

Ecommerce mobile apps are somehow similar to ecommerce apps that have ordering, delivering and payment processes like Talabat, Alibaba, Uber, Uber Eats, Nimber, Postmates and more features.

The average cost to create a mobile app by app type usually starts from USD 25,000. It can go beyond USD 50,000 depending upon the features and functionalities, complexities and technologies used to develop an app.

Here are some of the best on-demand app development suggestions for startups and business enthusiasts in different industries:

Food and Restaurant Industry (Average Development Cost to Create an App Is Ranging From USD 20,000 To 35,000+)

  • On-demand Food Delivery App
  • Food Recipe App 
  • On-Demand Home Made Food Delivery App
  • Bar Management App
  • Sheesha Booking App
  • Longue Reservation App
  • Restaurant Table Booking App
  • Nearby Restaurant Finder App

Supermarket or Grocery Stores (Development Cost Ranging From USD 20,000 to 35,000)

  • On-demand grocery delivery app
  • Raw mutton and chicken delivery app
  • On-demand Fruits or Vegetables Delivery App
  • An App To Delivery Frozen Seafood

Beauty and Salon Industry (An Average Cost To Build an On-Demand Beauty and Salon App is Ranging Between USD 20,000 to USD 35,000)

  • On-Demand Salon Management App
  • An App To Sell Beauty Products and Services 
  • Salon Booking App

Fitness and Healthcare Industry (Average Cost To Create On-Demand Fitness and Healthcare App Can Range from USD 20,000 to 35,000)

  • On-demand Tele Consultation App
  • On-demand Medicine delivery app
  • An app for emergency medical assistance
  • On-Demand Clinic or Hospital management app
  • An App for Healthcare booking 
  • On-Demand marijuana delivery app
  • On-Demand Fitness App
  • Yoga and Meditation App
  • An App for Online Fitness Training

Travel and Tourism Industry (An Estimated Cost To Create Travel Booking App is Ranging Between  USD 20,000 to 30,000 for a single platform)

  • On-demand hotel booking app
  • Travel ticket booking app
  • On-Demand B&B Booking App
  • On-Demand Travel Ticket and Tour Booking App
  • Travel Price comparing and booking App
  • Virtual travel booking app
  • VR Based Travelling App
  • On-Demand Car rental Booking App
  • On-Demand Bike Rental Booking App

Repair and Maintenance Apps (An Average Cost to Build Repair and Maintenance App Will be Ranging from USD 17,000 to 30,000 USD for a Single Platform)

  • On-Demand Car Service and Cleaning app
  • On-Demand Bike Repair and Service App
  • On-Demand Plumber Booking App
  • On-Demand Electrician Booking App
  • On-Demand Housekeeping App
  • On-Demand Pathway Repair and Servicing App
  • On-Demand Deck repairing App

Miscellaneous Applications for Multiple Industries (Average Cost To Create an App is ranging from USD 20,000 to 35,000)

  • Employee Time and Attendance management app
  • Employee performance tracking app
  • An App To Manage Workforce
  • On-Demand Petcare App
  • On-Demand Pet Sitter App
  • An App to Find Babysitters
  • On-demand Domestic Service App
  • An App to Deliver Pet food and essentials
  • On-demand Parcel pickup and delivery App
  • On-demand Logistics and shipping app
  • On-Demand Truck Tow service app
  • On-demand fuel delivery app

7. Marketplace App Development Cost

Marketplace apps like Airbnb are the perfect thriving apps that have created hype in the marketplace app category. Marketplace apps have a complex structure and a perfect fusion of on-demand and ecommerce applications. You can think of hiring an app development company to make sure that the app’s user interface and logic should be well-defined and addressed to the users. Developing such marketplace apps is a time-consuming task, so the cost to create marketplace apps will be higher as it boasts plenty of advanced features and functionalities. 

The average cost to create a marketplace app ranges from USD 25,000 to USD 35,000+ for a single platform and goes beyond USD 50,000 depending on the app’s complexity and platform you choose to launch an app. 

In A Nutshell: These are the few major app categories most startups and business enthusiasts consider building an application. But many of you are in significant confusion as to why there is a considerable variation in app development cost if there is a standard approach to build an application.

The biggest reason behind this is that no business has the same budget and requirements; therefore, mobile apps are custom-tailored to their needs through different technologies used to create various applications. 

Before we end up with the final cost estimation, let’s understand what contributes to the app development cost…

Major Factors Affecting The App Development Cost

Whether you are a startup or a leading entrepreneur, how much it costs to create an app is always a most pressing concern. If you are seriously looking forward to understanding what exactly influences the app development cost, you need to dig deep into the concept.

Before you get started with the app development process and start evaluating the app development cost, it is worth analysing who you want to target, your goal to launch an app, and which platform you want to code. To make your task easier, you can think of hiring a software developer as the entire design, interface of the app and choice of features and functionalities can be greatly varied as per the business requirements. Furthermore, always remember, regardless of the app idea, the button, screens and other elements make the application unique, engaging and convenient to users. Still, each factor will individually affect the overall cost of the project budget. 

As much as you would put the finger on how much does it cost to create an app, we can only come up with the statement that there are many factors involved in the development process that collectively influence the final cost.

However, we have rounded up such app development budget forming factors that will help you to shape a development cost of an app:

Mobile App Development Cost Drivers and Benchmarks

1. Vendor Type and Its Location

When it comes to developing a mobile app, startups are in enormous confusion as to whom they should hire for the project. Usually, there are three options: either employ an in-house app development team, outsource a mobile app development company, or look for freelancers. 

All vendor types come with their pros and cons. Employing an in-house app development team will ensure hassle-free communication. Still, on the other hand, it imposes the burden of monthly wages, the pressure of keeping your employees working, rents and more, which will ultimately cost you a high price.

Freelancers are the cheapest option, but there is a massive scope of project insecurity and lack of dedication. Since they are working all together from different corners of the world, how would you chase it even if you have made the payment and there is no work assured in return.

With the changing pattern of tech startups and keeping in mind the budget and time limits, outsourcing a development company seems to be an ideal approach to build a mobile app. The cost of building an app varies according to the business requirements, and hiring app developers depends on the developer’s location. So the billing of the final project will be carried out following this below formula.

“Total Development Hours * Per Hour Cost of the Respective Developer = Final App Development Cost”

2. Features and Functionalities of The App

While features and functionalities are considered the most critical element, any application and success of the app are majorly dependent upon the features you choose to include in the app. But keep in mind that each addition of features will add up to development hours and budget. 

3. UI/UX Design of The App

Development is the central part of the entire app development process and more about the actual coding of every feature you are supposed to have in an app. This is the most time consuming and critical stage of app development, so make sure you hire mobile app developer with skills and years of experience. However, to save on budget, it is worth looking for a simple, engaging and attractive UI/UX design that enables you to retain users. The simple designs are quick to process and save several hours on development.

4. Third-Party Integrations

Gone are those days when developers consider coding each phase of the application right from scratch. With the availability of third-party integrations, it has become easier for developers to add multiple functionalities to the mobile app without having to write code from scratch. But to make them work flawlessly, you need a robust backend and the proper use of technologies. 

5. App Testing and Deployment Stage

Different types of applications have a separate app structure, though they require different testing approaches for each mobile app. Depending upon the complexity and platform compatibility, the cost of the app testing varies. Additionally, it matters whether quality assurance engineers consider using multiple testing tools to eliminate the risk of bugs. The more testing tools and techniques it uses to evaluate the performance of the app, the higher the cost will be.

These are the few app development cost affecting factors that apply to different types of apps. But these cost drivers range pretty widely based on app structure and complexity. If you have noticed that most of the cost affecting things revolve around the app complexity. So let’s conclude the final app development cost based on the app complexity.  

However, before jumping straight on that, let’s look over some hidden cost affecting factors.

Hidden App Development Cost Driving Factors

If generally speaking about the app development cost, then it will depend upon two major phases. One is developing the app’s first version. It includes all the basic app development structures, design creating, coding and more. 

Secondly, the maintenance and support of the mobile app, which includes updates, implementation of new features, fixing bugs and more.

However, some elements fall in between the app architecture and ongoing developing categories and under evaluation. However, if you are all set to create a successful mobile app and calculate the app development cost, you need to know the hidden app development cost drivers. So below is the list of hidden elements that can influence the app development cost.

  • App development is not just about coding, designing and deploying an app. Have you ever thought about where to launch your app? The servers, hosting, and domains required for the app infrastructure always add to the development cost.
  • No matter what type of app you are developing, it must have user data, photos, or video content. So databases used for data storage will also influence the overall app development cost.
  • Different apps require an end number of tools and technologies, and there is no one-fit-to-all solution. Some tools and libraries are open sources, whereas you need to pay license fees for some. 
  • For Regular app testing and updates to fix bugs, you need to hire an app developer that quickly adds up the development cost.

Some professional vendors estimate the app development cost, including every minute detail of development. In contrast, most of them skip on these parameters to keep the development cost minimal at initial.

Conclusion: Final Estimation To Build a Successful Mobile App and Its Timeline

At the end of this blog, we assume that you have an idea of some average app development costs and what parameters majorly affect the app development cost and why there is a considerable variation between different app development price models. So whether you are a startup, SME or Entrepreneur having a brilliant mobile app development idea to translate into a robust solution, but not sure how much it costs you. In that case, hiring an app development company will be a worthy decision, and Xicom Technologies can be a perfect choice to collaborate with. Being a CMM3 ISO9001 certified mobile and web development company, they can assure you of the highest standard of solutions adhering to all the latest app development strategies and technologies.

If you are still in doubt, you can contact us and get your free estimation or drop a query; our experts will get back to you within 24 hours!


About Author
Aman Malhotra
Aman Malhotra

Aman is a business consultant and strategic leader bridging the gap between technology and client satisfaction. With 15+ years of knowledge, innovation and hands-on experience in providing consultations to startups, agencies, SME's and large enterprises who need dedicated development and technology partners. He has also lead to the delivery of countless web development and mobile app development projects with 100% client satisfaction.

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