App Release Trends: Atlassian Marketplace's Rollercoaster Ride

[Halyna Kudlak _SaaSJet_]

The Atlassian Marketplace has experienced significant fluctuations in app releases over the past five years, marked by an initial surge followed by a subsequent decline.

In 2018, 447 apps were released, but by 2021, that number had more than doubled to a whopping 1,059. However, the good times didn't last, and the number of apps released has steadily declined. So, what gives?

There are a few possible explanations for this rollercoaster effect:

• market saturation, when vendors find that user needs are already met by existing apps and the development of others is impractical, creating a barrier to entry;
• post-covid consequences that were caused by economic slowdowns on the global world crisis, having an indirect impact and forcing companies to reduce the cost of developing new products
• changing technological trends, which led to the use of not only the Atlassian ecosystem but also others; it should be noted that the emergence of new competitors is still ongoing
• Atlassian's strategy to introduce stricter quality standards for app development

The main driver of app growth, however, was the COVID-19 pandemic. As teams were forced to work remotely, they needed a variety of tools to collaborate effectively. This led to a surge in demand for apps that addressed these needs, and many of these apps were released between 2019 and 2021.

Despite the recent decline in app releases, the Atlassian Marketplace remains a vibrant hub for innovation and collaboration. As teams continue to adapt to the ever-evolving work landscape, the demand for robust and user-friendly apps will persist. Atlassian's focus on quality, coupled with its commitment to understanding the evolving needs of teams, positions the marketplace well for continued growth and exciting developments in the years to come.

💺So, buckle up and enjoy the ride! 😉 

[Holly Wright (Appfire)]

Hi @Halyna Kudlak _SaaSJet_ interesting post! I think all those could play a factor.

Would a first-time release of a Cloud or DC version for an existing Server app be counted as a new app in your chart, or is it only counting completely new apps? I'm wondering how much of this is driven by app vendors focusing on creating new DC and Cloud versions of their existing apps due to the launch of the DC approved apps program in late 2018, the Cloud/DC rev share incentive changes announced in 2019, and the Server EOL announcement in 2020. 

[Halyna Kudlak _SaaSJet_]

Hi @Holly Wright (Appfire) , thanks for your insightful question!

In the chart, we're exclusively counting the release of completely new apps. 

This means that the trends you see reflect only the introduction of new products to the Atlassian Marketplace. You may also find these charts helpful to get more insights:

[David at David Simpson Apps]

It would  be interesting to see how much the graphs change if you remove Apps+ releases from the equation.

They launched a surprising number of apps at around the same time, so may account for some of the bump around 2020/2021.

[Halyna Kudlak _SaaSJet_]

@David at David Simpson Apps ,that's a good observation about the impact of Apps+ releases on the overall trends.

I've prepared a chart that excludes the Apps+ releases from the data. This should give us a clearer picture of the underlying trend without the influence of their concentrated release schedule around 2020/2021.

As you can see in the attached chart, the general upward trend in app releases on the Atlassian Marketplace continues, but the spike in 2020/2021 is less pronounced.

This suggests that while Apps+ had a significant impact during that period, the overall growth trajectory of app releases remains strong.

I hope this chart provides the clarity you were looking for!

[Joanna Weber]

Really interesting stats - thanks for sharing them with us