How Much Does It Cost to Make an App in 2024?

The demand for mobile apps has increased across industries in recent years. Businesses across the globe are recognizing the huge potential that lies in providing their products or services through user-friendly and convenient mobile applications. However, one crucial aspect that frequently gets overlooked in the excitement of app development is the cost.

Understanding the factors that influence app development costs is vital for effective planning and budgeting, ensuring that businesses can make informed decisions and allocate resources accordingly.

The Booming Mobile App Market and its Costs

The mobile app market is booming, with the Google Play Store boasting over 3.950 million apps and the Apple App Store at 1.83 million as of Q2 2024. Statista predicts the mobile app market revenue to reach USD 565.40 billion by 2030, emphasizing the growing popularity and potential of mobile apps.

Naturally, businesses are actively exploring mobile app development. But how much does it cost to develop a mobile app? This guide dives into the app development cost, factors affecting the cost and strategies to save money on your project.

Statistics and Sources:

Let's explore some insightful statistics on app development costs, sourced from industry reports, surveys, and reputable companies:

* According to a survey by Clutch, the average cost of developing a simple app ranges from $10,000 to $50,000, while medium complexity apps may cost between $50,000 and $150,000. Complex apps can surpass $150,000.

* The App Association states that the average cost of developing an app for iOS ranges from $80,000 to $150,000, whereas the cost for Android app development ranges from $60,000 to $140,000.

* A report by GoodFirms reveals that the average app development cost per hour varies: $50-$150 in North America, $30-$100 in Western Europe, and $20-$80 in Eastern Europe, Asia, and South America.

The Most Popular Global Apps and Their Development Cost

Here's a table showing some of the most popular global apps and estimated development costs for a basic version:

Important Notes:

• These are estimated costs and can vary significantly depending on several factors, including complexity, features, platform (Android, iOS, or both), location of development team, and experience level of developers.

• The costs listed are for basic versions and could be much higher for complex apps with advanced features like machine learning, AR/VR, or real-time data processing.

• Development is just one part of the equation. Additional costs like marketing, server infrastructure, and ongoing maintenance must be considered.

Factors Affecting App Development Cost:

1. App Complexity:

The complexity of an app plays a significant role in determining its development cost. Apps can generally be categorised into three types based on complexity: simple, average, and complex.

• Simple apps, such as calculators or flashlights, fall on the lower end of the development cost spectrum, ranging from $5,000 to $15,000. These apps typically have limited features and functionality.

• Medium apps, such as social media or e-commerce platforms, require more extensive development work and come with a moderate price tag ranging from $15,000 to $30,000.

• Complex apps, such as gaming or augmented reality/virtual reality (AR/VR) applications, involve intricate coding and advanced features, resulting in significantly higher costs, often starting at $30,000 and beyond.
   

2. Platform:

The choice of platform also affects app development costs. There are two primary platforms to consider: native and hybrid.

• Native app development involves creating separate versions of an app for each platform, such as Android and iOS. This approach requires extra development and maintenance efforts, which can increase overall costs.

• Hybrid app development, on the other hand, allows the use of a single codebase for both Android and iOS platforms. This approach results in lower costs due to reduced development and maintenance requirements.

3. Features & Functionality:

The number and complexity of features and functionality directly impact app development costs. As the complexity and sophistication of an app's features increase, so do the effort and resources required for the development. Adding advanced functionalities, such as payment gateways, real-time tracking, or advanced analytics, can significantly escalate costs.

4. Design:

Custom design elements greatly add to the app's overall cost. Creating unique and visually appealing user interfaces, icons, and animations demands more time and resources from the design team. While ready-made design templates may seem more cost-effective initially, investing in bespoke designs often enhances the app's user experience and long-term success, justifying the additional expense.

5. Development Team Location:

The development team's location, experience, and size also play a role in app development costs. Hiring a team from regions with lower labour costs, such as India or Eastern Europe, can prove to be a cost-effective option, especially for businesses working with a limited budget. However, it's important to strike a balance between cost and experience to ensure the development team possesses the necessary skills and expertise to deliver a high-quality app.

Below is a summary of the average hourly rates categorized by various global regions.

6. Additional costs to consider:

There are other cost factors to consider. App store submission fees, which range for different platforms, must be accounted for. Ongoing server costs, particularly for apps with heavy data storage or processing requirements, can add to the overall expenses. Furthermore, allocating a portion of the budget for marketing expenses is essential to ensure the app reaches the intended audience effectively.

Cost-Saving Strategies:

To keep app development costs in check without compromising on quality, consider the following cost-saving strategies:

• Utilizing open-source libraries and frameworks: can greatly reduce development efforts and costs. By leveraging the extensive collection of readily available, free resources, businesses can minimize development time and avoid licensing expenses.

• Outsource development to a reliable and cost-effective team: Businesses can maximize cost-efficiency and quality by outsourcing development tasks to skilled teams in regions with lower labour costs. Partnering with reliable developers enables access to competitive rates, effective communication, and high work standards. It's essential to prioritize reputation and communication skills when selecting an outsourcing partner to ensure successful collaboration and the timely delivery of projects.

• Prioritizing features and focusing on a Minimum Viable Product (MVP): involves identifying the essential features that deliver core value to users. Launching an MVP with these crucial features enables businesses to validate their app idea with users before making further investments. This approach helps to minimize initial development costs while allowing room for future enhancements based on user feedback in future iterations, ultimately saving upfront development costs.

• Define Your Requirements Clearly: Define the core features and functionalities your app needs before developing. This reduces the risk of scope creep and unnecessary features that inflate costs.

• Choose the Right Development Methodology: Agile methodologies like Scrum promotes iterative development and continuous feedback, allowing you to adapt as needed and avoid costly rework.

• Cross-Platform Development: Build an app that works on both iOS and Android platforms using a single codebase. This saves time and resources compared to developing separate native apps for each platform.

• Assemble the Right Team: Hire developers with the skills and experience relevant to your project needs. Avoid over-staffing the team, as idle resources increase costs.

• Effective Project Management: Implement clear communication channels, task management tools, and regular progress tracking to avoid project delays and rework.

• Prototype Before Development: Invest in a basic prototype to visualise the app's functionalities before full-fledged development. This helps identify and address potential issues early on.

Conclusion: 

In conclusion, app development costs vary greatly depending on several factors. While it's possible to create a basic app for under $10,000, complex apps with advanced features can cost upwards of $200,000. Cost-saving strategies like open-source tools and MVP development can help optimise your budget.

Remember, successful app development goes beyond the initial cost. iRoid Solutions offers expert guidance and development services throughout the entire process, from ideation to launch and beyond. Contact us today for a free consultation and let's discuss how we can turn your app idea into reality.