Over 4 million apps sit waiting in app stores worldwide, yet only a fraction ever see meaningful success. That's quite a sobering thought when you're considering your next mobile app venture. The reality is that some app categories have become so saturated that breaking through feels almost impossible—no matter how brilliant your idea might be.
Building a successful mobile app isn't just about having a great concept anymore. It's about understanding the competitive landscape and knowing where you're most likely to succeed. Some categories are filled with well-funded giants who've already claimed the territory, whilst others are packed with thousands of similar apps fighting for the same small slice of user attention.
The graveyard of failed apps is littered with brilliant ideas that entered the wrong category at the wrong time
This guide will walk you through the most competitive app categories that you should approach with extreme caution. We'll explore why these categories became so saturated, what makes them particularly challenging for newcomers, and most importantly, what you can learn from their struggles. By understanding these competitive battlegrounds, you'll be better equipped to make informed decisions about your app's category and positioning—potentially saving yourself months of development time and thousands of pounds in the process.
Understanding App Store Saturation
After eight years of building mobile apps, I've watched the app stores transform from a land of opportunity into something much more challenging. Back when I started, getting your app noticed was tough but doable—now it's like trying to shout in a stadium full of screaming fans. The numbers tell the story: millions of apps compete for attention across both major app stores, with thousands more launching every single day.
App store saturation isn't just about quantity though; it's about quality competition too. When the App Store first launched, a simple flashlight app could make decent money. Those days are long gone. Now you're competing against apps with million-pound budgets, teams of designers, and marketing departments that know exactly how to game the system. The bar has been raised so high that even good apps struggle to find their audience.
What Makes Categories Truly Saturated
I've learned that saturation happens when three things collide: too many similar apps, users who already have their favourites, and big players with deep pockets dominating the space. Some categories have become so crowded that breaking through requires either revolutionary innovation or marketing budgets that most startups simply can't afford. That's why knowing which categories to avoid can save you months of heartache and thousands of pounds.
Gaming Apps: The Oversaturated Battlefield
The gaming category is where good ideas go to die. I've watched brilliant developers pour their hearts into amazing game concepts only to see them disappear into the void of app store obscurity. The numbers are brutal—there are over 500,000 games on the App Store alone, and that figure grows by hundreds every single day.
What makes gaming so challenging isn't just the sheer volume of competition; it's the type of competition you're facing. You're not just competing against other indie developers in their bedrooms. You're going head-to-head with billion-dollar studios that have marketing budgets larger than most companies' entire annual revenue.
The Cost of Competition
User acquisition costs in gaming have skyrocketed. Where you might spend £2 to acquire a user in other categories, gaming apps often pay £10-30 per install. The top games dominate the charts for years, making it nearly impossible for newcomers to break through organically.
| Game Type |
Average Development Cost |
Marketing Budget Needed |
| Casual Mobile Game |
£50,000-£200,000 |
£500,000+ |
| Mid-tier Game |
£200,000-£1M |
£2M+ |
| AAA Mobile Game |
£5M+ |
£50M+ |
If you're determined to enter gaming, focus on super-niche audiences or innovative gameplay mechanics that can't be easily copied by larger studios.
The mobile app landscape changes constantly, but gaming remains consistently oversaturated. Unless you have serious funding and a truly revolutionary concept, your energy might be better spent in less competitive categories.
Social Media and Dating Apps: Fighting Giants
I've watched countless entrepreneurs walk into my office with the next big social media idea, convinced they'll be the ones to topple Facebook or Instagram. The reality? You're not just competing against other apps—you're going up against companies with billions in revenue and teams of thousands of developers.
Social media platforms have something called network effects working in their favour. The more people who use them, the more valuable they become to everyone else. This creates a massive barrier for new entrants because users won't switch to your brilliant new platform if their friends aren't there yet.
The Dating App Dilemma
Dating apps face similar challenges but with an added twist—they need to maintain a delicate balance between helping people find matches and keeping them engaged long enough to generate revenue. Tinder revolutionised the space with swiping, but now everyone's trying to copy that success.
The established players have deep pockets for marketing and user acquisition. They can spend millions attracting users whilst smaller competitors struggle to get noticed. Plus, they've got years of data to improve their algorithms and user experience.
Why These Categories Are Particularly Brutal
Here's what makes these markets especially challenging for newcomers:
- Massive marketing budgets needed to acquire users
- Strong network effects that favour existing platforms
- High user expectations for features and performance
- Constant pressure to innovate and add new features
- Regulatory scrutiny around privacy and data protection
Unless you've got a truly revolutionary approach and serious funding behind you, these categories are best avoided by most developers.
Finance and Banking Apps: Regulatory Nightmares
I've worked with clients who wanted to break into the finance mobile app space, and let me tell you—it's not for the faint of heart. The app store is already packed with established banking giants, fintech unicorns, and investment platforms that have spent millions building trust with users. But the real challenge isn't just competition; it's the regulatory maze you'll need to navigate.
Financial apps face strict compliance requirements that vary by country, region, and even individual states. You'll need licences, certifications, and legal frameworks that can take years to obtain. The cost of compliance alone can sink a startup before they even launch. Plus, users are naturally cautious about trusting new financial apps with their money—and rightly so.
Security Concerns Drive Users Away
Security breaches in finance apps make headlines, and users have long memories when it comes to their money. Building the level of security infrastructure required means significant upfront investment in encryption, fraud detection, and monitoring systems.
The regulatory burden for financial apps is so complex that most startups underestimate the time and cost by at least 300%
Category analysis shows that successful finance apps either have massive funding behind them or focus on very specific niches. The big players dominate the app store rankings, making organic discovery nearly impossible for newcomers. Unless you have deep pockets and years of patience, this category is best avoided.
Shopping and E-commerce Apps: Amazon's Shadow
I've watched countless entrepreneurs pitch their "revolutionary" shopping app ideas over the years, and I'll be honest—most of them make me wince a little. Not because the ideas are bad, but because they're entering one of the most brutal battlegrounds in the entire app ecosystem.
Amazon didn't just win the e-commerce war; they completely rewrote the rules. They've got same-day delivery, one-click purchasing, and more products than you could browse in a lifetime. When users think "buy something online," Amazon is the first name that pops into their heads. That's not just market dominance—that's psychological real estate.
The Cost of Competing
Building a shopping app isn't just about pretty product photos and a checkout button. You need payment processing, inventory management, customer service, delivery logistics, and return policies. Then there's the marketing budget you'll need just to get noticed amongst the thousands of other shopping apps.
Even if you've got a brilliant niche idea—let's say vintage football boots or handmade pottery—you're still fighting an uphill battle. Amazon's already got vintage football boots, and they can probably get them to customers faster and cheaper than you can. The infrastructure requirements alone will eat through your budget before you've sold your first product.
Photo and Video Apps: The Filter Wars
The photo and video editing space is absolutely brutal. I've had countless clients come to me with "the next Instagram" or a "revolutionary video editing app" and I have to break some hard truths to them. This mobile app category analysis shows us that photo and video apps face some of the fiercest competition in the entire app store.
Instagram dominates the social photo sharing space whilst TikTok owns short-form video content. Then you've got Snapchat with its augmented reality filters, VSCO for serious photo editing, and Adobe's suite of professional tools. That's before we even mention the dozens of specialised apps for specific editing features—each fighting for their slice of the market.
The Technical Challenges
Building a photo or video app isn't just about competing with existing apps; it's about overcoming massive technical hurdles. Video processing requires significant server resources, real-time filters need advanced programming skills, and users expect lightning-fast performance. Storage costs alone can bankrupt a startup when users are uploading gigabytes of content daily.
The biggest issue? User acquisition costs are through the roof because everyone's fighting for the same audience. Getting someone to switch from their current photo app to yours requires something truly special—not just another set of filters.
If you're set on entering this space, focus on solving a very specific problem that the big players ignore, rather than trying to compete head-to-head with their core features.
Health and Fitness Apps: Crowded Wellness Market
The health and fitness app market is absolutely packed—I'm talking about millions of apps all fighting for the same users who want to track their steps, count calories, or follow workout routines. When I look at the App Store, I see endless rows of fitness trackers, meditation apps, and diet planners that all promise to change your life.
What makes this market particularly challenging is that the big players have been here for years. MyFitnessPal dominates calorie counting, Strava owns the cycling and running community, and Headspace has meditation locked down. These apps have millions of users and years of data—that's a tough wall to climb.
Why Breaking Through is So Difficult
The wellness market faces unique challenges that make it harder for newcomers:
- People stick to apps they already know and trust with their health data
- Building accurate health tracking requires expensive sensors and partnerships
- User retention is notoriously low—most people abandon fitness apps within weeks
- Competition from wearable devices like Apple Watch and Fitbit
- Strict app store guidelines around health claims and medical advice
The truth is, unless you have a genuinely revolutionary approach or can target a very specific niche, you'll find yourself lost in a sea of similar apps. The established players have the resources, user base, and brand recognition that make them incredibly difficult to challenge.
Conclusion
After eight years of building mobile apps for every type of client you can think of, I've learnt that success isn't just about having a brilliant idea—it's about picking the right battlefield. The app store categories we've explored in this guide aren't necessarily impossible to crack, but they're going to require serious resources, unique positioning, and frankly, a bit of luck.
Gaming apps face millions of competitors; social media means going up against Facebook and TikTok; finance apps need regulatory approval that takes months; shopping apps compete with Amazon's endless budget. Photo apps fight Instagram's dominance whilst health and fitness apps struggle in an overcrowded wellness market. These aren't insurmountable challenges, but they're expensive ones.
Before you dismiss your app idea completely though, ask yourself if there's a different angle. Can your gaming concept work as an educational tool instead? Could your social platform target a specific niche community? Sometimes the best strategy isn't avoiding competitive categories entirely—it's finding an underserved corner within them.
The mobile app landscape changes constantly, and what's saturated today might have gaps tomorrow. Keep researching, stay flexible with your category analysis, and remember that even the most crowded markets can have room for genuinely innovative solutions.
