According to Statista, the revenue across different segments of the mobile app market will rise to 613 billion U.S. dollars by 2025, significantly building its growth in comparison with 318 billion U.S. dollars in 2020.
Such a dynamic expansion is tightly linked to rapidly changing business ecosystems where developing an app has become an existential imperative.
Yet, creating an app can be a costly endeavor, which has multiple factors to consider. In this article, we will take a detailed look at the cost of app development, from initial creation stages to ongoing maintenance.
App Development Cost Statistics
How much does it cost to make an app? Numerous factors come into play during app development, directly impacting the investments companies spend on their technological endeavors. Development costs vary depending on the type of app, its features, and the platform on which it is developed. The cost of developing an app also relies on whether you hire a developer or use a DIY platform. For example, a simple app can cost as little as $30,000 — $40,000, while more complex products can cost upwards of $500,000.
What is the cost of outsourcing app development? If we consider paying 40$ per hour to be the optimal scenario, the average development cost of a simple app reaches somewhere from $40,000 to $60,000. Regarding projects of higher complexity, the average development cost can rise to $150,000, while the price tag for multidimensional, complex apps comprises more than $300,000. The rule of thumb is that the longer the project takes, the more a company will usually pay for the final result.
The Cost Difference for Various App Types
The cost of developing an application highly relies upon the app’s type. Applications that are more affordable to develop include those that support few features and have simple software architectures. These types of applications are typically more accessible since they require less time and effort to create. Additionally, applications that are designed for specific platforms, such as iOS or Android, are often less expensive to develop than those that can be deployed on multiple platforms.
In addition, apps for specific industries can also be more expensive to develop than others. For example, an app for the healthcare industry might require compliance with regulatory standards, which can add to the development cost. Similarly, an app for the financial industry might need to be designed to handle sensitive data, resulting in an accumulation of additional expenses. As a result, development costs may be higher in industries where regulatory compliance is required (such as the pharmaceutical industry) or where there is a need for extra cyber security measures or specialized equipment or facilities (such as the automotive industry).
App Development Costs in Different Regions
As a general guide, the cost of creating an app can range from a few thousand dollars to millions of dollars. The specific price will depend on many factors, including the complexity of the app, the number of features it requires, the size of the development team, and the length of time it takes to develop the app. Overall, app development costs are lower in regions where labor costs are lower, such as Asia and Eastern Europe while app development in North America tends to be more expensive.
Eastern Europe is a top destination for app development. The average app development cost in this region is about half of what it costs in Western Europe or the United States. Eastern Europe offers multiple benefits to organizations, including lower labor costs, a large pool of skilled workers, and access to a growing market. Additionally, Eastern European countries often have more lenient regulations regarding app development and distribution than other regions. What’s more, the region has a growing startup ecosystem and serves as a home to many innovative companies. All these advantages make Eastern Europe an attractive destination for businesses looking to create custom apps.
Factors Affecting App Development Costs
The cost of app development can be affected by many factors, including the type of app being developed, the complexity of the app, the number of features included, the amount of time required for development, and the number of developers involved. All these factors should be considered during mobile app development:
- Project type. The more complex an app’s architecture is, the more sophisticated tools and technologies may be required.
- Functionality. The functionality of an app also has an impact on its development cost. More complex and feature-rich apps will generally be more expensive to develop than simpler ones.
- Platform. The platform on which an app is developed can also affect its cost. Developing an app for a popular platform such as iOS or Android will generally be more expensive than developing for a less popular platform.
- Development team. The size and experience of the development team can also affect the cost of developing an app. A larger team with more experience will generally be more expensive than a smaller team with less experience.
- Location. The location of the development team can also affect the cost of developing an app. Development teams in countries with a high cost of living will generally be more expensive than those in countries with a lower cost of living.
- Customization of visual design. When it comes to customization, the cost of developing an app can increase significantly if the visual details of the app need to be changed to meet the specific needs of the client. For instance, if an app is developed for a specific industry, the visuals may need to be customized to match the branding of that sphere. It can add to the development costs, as well as the time necessary to complete the project.
Finally, several additional factors can affect the development of software applications, particularly the operating system, the hardware platform, the development environment, and the programming language. Besides, factors such as the company’s development methodology, the project’s budget and timeline, and the quality of the code have a direct impact on the outcome of the project.
Hidden Costs of Mobile App Development
There can be hidden costs when developing a mobile app, particularly if the app requires investment in hardware or specialized features. Development costs may also require more intricate investment if the project is outsourced, as there can be fees for communication and managing the project. Other hidden costs can include post-launch maintenance and support, which usually comprise an ongoing expense. Below are some of the indirect factors that should be considered beforehand:
- Development tools. While most mobile app developers use integrated development environments (IDEs) such as Xcode and Android Studio, these instruments can be expensive to license and maintain. In addition, many developers choose to use paid-for libraries and frameworks to speed up the development process, which can also add to the cost.
- Device testing and emulation. To test how an app will work on different devices, developers often have to purchase multiple devices, or use device testing and emulation software. This approach often heavily relies upon additional expenses, especially if developers are targeting many devices.
- The cost of developing for multiple platforms. If you want your app to be available on both iOS and Android, you need to factor in the cost of developing for multiple platforms. This strategy includes reviewing the cost of hiring separate developers for each platform, or the cost of using a cross-platform development tool.
- The cost of marketing. Developing a relevant and highly functional app is only half the battle. You also need to market your app to ensure people actually find and use it. Marketing costs can include the cost of creating a website, advertising, and maintaining a social media presence.
Last but not least, how the app is distributed will also affect the development cost. When an app is published on an app store, the store will usually take a cut of the app’s sales. Fees can eat into an app’s profits, and they should be factored into the cost of developing an app. In addition, if you plan to sell your app, you will have to pay a fee for each sale. If you plan to distribute your app for free, you will not have to pay any fees. However, you may still have to pay for the cost of hosting your app and for the cost of marketing your app.
How to Estimate App Development Costs
When estimating app development costs, consider the cost of the entire project from start to finish, including all phases of development, testing, and deployment. In addition, make sure to include a contingency for unexpected costs that may arise during the project.
- Define the scope of the project. The first step to estimating the cost of developing an app is to define the scope of the project. What features and functionality do you want to include in your app? How many platforms do you want to deploy along the way? What kind of design will bring needed value and maintain the relevance of your product? Once you have a clear picture of what you want your app to do, you can start to put together a more accurate estimate.
- Research the cost of development. The next step is to research the cost of development. Look at the cost of development on different platforms and for different feature sets. Make sure to get quotes from multiple developers to get a range of prices.
- Consider the size and complexity of the project. Once you have an idea of the cost of development, you need to consider the size and complexity of the project. A more complex app will take longer to develop and will be more expensive.
- Determine the timeline for the project. The last step in estimating the cost of developing an app is to determine the timeline for the project. How long do you expect the project to take? How much can you afford to spend each week or month on development? Once you have a clear timeline, you can start putting together a more accurate project estimate.
Finally, it is a great idea to avoid cutting corners when estimating the cost of developing an app. Skimping on quality will likely end up costing more in the long run.
How to Reduce App Development Costs
If you’re looking to reduce the cost of developing an app, there are a few things that can be helpful:
- Evaluate the cost of an app development project before starting. This includes not just the cost of the initial development, but also the cost of any future updates or maintenance that may be required.
- Work with an experienced and reputable development team. If you do not have the internal resources to develop an app, consider outsourcing the work to a reputable development firm. By the link you can find out the tips on how to choose software development company. A team that knows how to build quality apps efficiently can help reduce development costs.
- Use cost-effective tools and technologies. There are many options available for app development, and some are more expensive than others. Choose the tools and technologies that will provide the most value for the money.
- Simplify the app. An app with too many features or a complicated interface can be more expensive to develop and harder to use. Keep the app simple and focused on the most important features.
- Avoid saving on quality. A quality app is more likely to be successful and generate repeat users. In the long run, this can save money by reducing the need for constant updates and maintenance.
- Deploy an agile development methodology. This approach breaks down the development process into smaller, more manageable pieces. This makes it easier to make changes and track progress, which can save time and money in the long run.
Besides, you may consider deploying open source or pre-built app development solutions to save on development costs. Another fruitful strategy may consist in leveraging existing infrastructure and systems whenever possible.
Custom App Development with Intetics
If you are looking for a way to improve communication with your customers and employees, mobile apps are the way to go. Use Intetics’ mobile development services to get an edge on your competition. Our team of analysts, developers, quality assurance engineers, and business consultants collaborate to deliver a fast and cost-effective solution. We work closely with you throughout the mobile development process, from initial planning to app development and deployment, to maintenance and continuing upgrades. No matter what the development challenge is, we will help you realize your vision and deliver a quality product. Leveraging cutting-edge technologies and processes to propel your competitive advantage, we can seamlessly assist your businesses in a digital transformation.
How much does an app development cost? The cost of creating an app depends on many factors, including the type of app, the platform it is built for, the features it includes, and the amount of time and effort. It can be a costly endeavor, but there are ways to cut down on expenses. By being aware of the potential cost factors and planning challenges, you can develop an app on a budget. One of the most productive ways to get an accurate estimate of the cost of creating an app is to engage with a professional app development company and meticulously plan a step-by-step strategy.
Intetics is a mature company that unites technology devotees from all over the world. We design, develop, and maintain custom software solutions for SMEs and large enterprises. Would you like to learn more about the opportunities for app development? Don’t hesitate to contact us and find out how we can help you create reliable and relevant tools to meet your business needs.
How Much Does It Cost to Make an iOS App?
iOS apps vary widely in price, depending on the features and functionality they have to offer. Simple apps with few features can cost as little as $40,000 to develop, while more complex apps can cost upwards of $500,000. Apps are usually charged on a per-project basis, meaning you will pay one setup fee and then an hourly rate as the app is developed.
How Much Does It Cost to Develop an Android App?
The cost to make an Android app varies depending on the complexity of the app and the number of hours required to build it. Depending on the app’s complexity, it can cost anywhere from $25,000 to $100,000 to develop an Android app. Creating a high-quality Android app of greater complexity requires a significant investment that reaches beyond $100,000.
How Much Does It Cost to Build a Mobile App?
The cost of app development can vary greatly depending on a number of factors, including the specific features and functionality required, the platform(s) on which the app will be built, the size and location of the development team, and the overall complexity of the project. App development costs can range from a few thousand dollars to over a million dollars. The average cost of developing a simple app is around $30,000. However, more complex apps can cost upwards of $500,000.