Want to Start On-Demand App Based Business? Learn Top 5 Industries Backing Exponential Growth of the On-Demand Economy

Published on: February 10, 2021
Updated on: August 10, 2021

    • Introduction:

    It was not long ago that we set our hands-on smartphones for the first time. It felt magical to touch the screen and choose the service we wanted to access with our bare hands. Never had we imagined that one day this piece of technology would become the primary tool to connect us with the outside world. But the shift has occurred and the on-demand economy is partly responsible for the same.

    With the advent of mobile phones, before a decade we wished if we could just tap our fingers and services or products are made available to us. The already established on-demand app development industry has invested resources in understanding the pains of their consumers and embedding technology with their current services. As of today, businesses and start-ups have realized the importance of offering their services through the means of a mobile or web app.

    With the unfathomable success of apps such as Uber, there came an evolution in the on-demand economy. Whether it’s the healthcare industry or cab-hailing or the logistics sector, on-demand services are improving the lives of people by providing ample benefits such as convenience, affordability, scalability, and profitability.

    This blog is all about which industries are contributing to the growth of the on-demand economy and the basics of developing an app. If you wish to create an app for your business, this is the perfect blog for you. So…Read-on!

    Build holistic On-Demand Mobility solutions tailored to your business needs!

    Overview:

    The functionalities that the on-demand apps provide are not the only reason that is fueling the on-demand economy. Consumers today are so time-pressed that they’ve adopted these services from the launch. Other than this there are various vertices that act as a catalyst in increasing the demand for the on-demand economy.

    Here are some of the stats that can shed some light on the market and the future of the on-demand economy.

    The preceding statistics speak volumes for the current market scenario and the future that the on-demand economy holds. Let’s learn the industries that are contributing heavily to the on-demand market.

    • The on-demand sector is predicted to grow from 213 billion USD in 2017 to 435 billion USD in 2021. The CAGR is expected to be 49%.
    • Around 22.7 million people have used the on-demand apps generating revenue worth 57.6 billion USD.
    • 49% of the users using the on-demand market are millennials.
    • 55% of the users are male and 45% of them have a 4-year college degree.
    • 46% of the on-demand consumers have an annual income of fewer than 50,000 USD.
    • 54% of the customers live in the suburbs while 18% live in the inner city.

    Top 5 Industries Contributing to the On-Demand Economy:

    Now, that you’ve learned the top industries fueling the on-demand economy, let’s dive into knowing how to prepare to enter the on-demand app industry.

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    Healthcare:

    The foremost industry that was in dire need of on-demand services is the healthcare sector. However, though, the incoming pandemic has already made users realize the importance of on-demand healthcare solutions. Before the on-demand apps, it was necessary for patients to book appointments via calls and doctors had to maintain paperwork. Apart from this one had to go to pharmacies physically to avail medicines.
    All this hard work has been replaced with the introduction of healthcare on-demand apps. Due to this, the number of healthcare companies has increased from 4 to 42 at a CAGR of 224% between 2010-14.
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    Finance:

    The Finance or Fintech sector has also offered major transformation in the ways consumer accessed their finance. The fintech apps are offering easy, quick, and reliable ways to the existing financial structure.
    These apps are efficiently providing financial services on their platforms while also offering easy-to-integrate APIs allowing other on-demand apps to make use of the same.
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    Education:

    The education sector is one of the other industries that has seen tremendous growth in recent years. Especially with COVID closing down on schools and colleges, the education apps have flourished like never before. The education apps remove all the barriers and offer independent learning. You don’t have to worry about the morning class or the course curriculum.
    This is the biggest benefit of using online learning platforms, it allows all users to learn any course they want to learn without placing the limitations of age or other pre-requisites. The global online education market is expected to grow from 187 billion USD to 319 billion USD between the forecasted period of 2019-2025 at a CAGR of 9.23%.
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    Food Delivery:

    The on-demand food delivery sector needs no introduction. The introduction of this vertical has opened doors for various brick-and-mortar businesses to reach their customers. Such services were previously availed by the mighty restaurants and food chains. Today, every food provider has an equal opportunity of influencing the customers.
    The food delivery sector isn’t limited to delivering food from restaurants and food joints. Many other are areas such as grocery, delivery, meal kit delivery, fixed meal delivery, and the likes have also surfaced in recent years.
    Some interesting statistics state that the online delivery business is projected to grow to a whopping 55 billion USD by 2022 from 20 billion USD in 2017. Online ordering has also increased the average basked size by 25% for both big and small restaurants. Due to such promising figures, start-ups are now focusing on entering the on-demand food delivery market.
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    Travel & Tourism:

    The travel industry has forever been transformed since the apps like Uber, Lyft and the likes made their way to the market. Remember, when you had to go out searching for cabs, and the issues and hustle with traveling to remote locations. With the advent of such apps, you can travel almost anywhere with the tap of your fingers.
    The tourism industry has seen a surge in revenue since apps like Airbnb have made it to the market. Now, if someone has a spare room that they aren’t using for long, they can earn money from it by renting it on Airbnb. The Travel & Tourism industry also receives the highest of fundings as compared to other on-demand sectors.

    How you start your own On-demand App Based business?

    How to Enter the On-Demand Market?
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    Choosing the Right Industry:

    The on-demand industry comprises several sub-domains. On-demand laundry, storage, e-scooter, and other such apps are some of the industries with thriving business potential. You must observe the pains of the niche you’re targeting and offer viable solutions that are in congruence with your user’s expectations.
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    Come up with a Business Model:

    Having a business model is of utmost importance. Your business model would decide how your app would target its customers and earn revenue from it. It would also help you determine which features you can include in your app.
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    Market Research & Analysis:

    No matter which business you’re about to enter, it’s always advisable to do market research before you do. You also have to analyze your competitors to learn what services they’re already providing and how you can add-on to the same. Performing market research and analysis would help you validate your app idea. It would also help you learn if you should opt for an MVP or a fully-fledged app.
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    Hire an Experienced App Development Company:

    You might possess all the skills that are required to develop a complex on-demand app. So, you must research well and find out an experienced app development company that can offer you the correct guidance. If you have the backing of the right tech experts the app you design would be bug-free and equipped with the latest tech.

    Why Choose Technource as your On-Demand App Development Partner?

    Technource has been serving the professional IT sector for 9+ years and has made a few valuable contributions as a mobile app development company. We’ve successfully launched numerous mobile and web apps for our clients around the globe.

    We have an enthusiastic and expert team of developers, designers, QAs, and other talented individuals that make it possible to deliver complex projects on time. We provide our services in web and mobile app development.

    The native languages we work with are JAVA & Swift while we work with cross-platform techs such as Ionic, Flutter, and React Native. We also make use of Industry 4.0 techs to inculcate advanced features in our client’s app. Our work can be observed on our website in the form of the case studies that we’ve posted.

    Now, you have a clear idea of the industries that are flourishing in the on-demand market. The numbers we observed for the same say a promising story of the on-demand economy’s future. If you’re a start-up or an experienced investor willing to invest in the on-demand business, there won’t be a better time than this. You can gain other essential insights on the same by signing up for a free consultation on our website. We will get back to you as soon as possible. Let’s join hands and change lives for the better.

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    Mr. Sanjay Singh Rajpurohit, An early-aged entrepreneur who always leads his team from the front and achieved success. As the founder & CEO of Technource, a top mobile app & Web development company, he made a global presence in a short time by offering custom software development, premium mobile apps, and website development services to global clients. In his free time, he loves writing. He is featured on Hackernoon, Dzone, Enlear Academy, Articlesfactory, and much more websites.

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