Dating App Industry to Grow to Over $11 Billion by 2028

The dating app industry is expected to grow to over $11 billion by 2028, thanks to the increased use of smartphones and people turning to them for connection during the pandemic.

A new report by Grand View Research found that the industry is doing better than ever and will only continue to grow at a rate of 5.6% compound annual growth rate (CAGR) through 2028. The increasing global reach of smartphones and internet access has helped to propel the industry forward, as well as pandemic lockdowns and the increased interest in virtual dating.

The study also found that the 18- to 25-year-old market is expected to register the second largest CAGR of 5.8 percent over the same period. Dating apps have their eyes on Gen Z daters who are looking for something more engaging than the typical routine of swiping through profiles on an app, as they have grown up with smartphones and virtual experiences. Many of the new offerings that apps like Tinder are unveiling include interactive content. Tinder and Bumble have both recently announced that they will be offering experiences in the metaverse where daters can create avatars and meet in virtual spaces to date.

Global Market Size for 2020

Image: GrandViewResearch.com

North America currently holds the largest market for dating app users, but other markets are closing in and will likely surpass it by 2028. The Asia Pacific region is the fastest-growing market at a CAGR of more than 6 percent over the forecast period according to researchers, thanks to the growing access to internet and the roll-out of high-speed data networks. About 2 billion people in Asia (49 percent) are Internet users.

Japan is also investing in the dating app market, with the government funding a new AI based dating service that helps Japanese singles find curated matches based on more sophisticated algorithms, as the country is seeing a decline in marriage and birth rates. The researchers expect these types of moves will drive the dating app market as a whole in this region.

The study noted that the subscription segment dominated the market in 2020, thanks to how many dating apps are putting popular features behind a paywall. They typically offer a free version of the app and additional premium features that users can pay to access. Since many were relying on dating apps during the lockdowns, they were willing to pay for things like virtual chats and messaging features that often are not included with the free experience. 

Grand View Research is based in the U.S. and offers more than 1200 market research reports each year for various industries, including the dating app market.