As digitalisation accelerates, saturation raises questions about innovation, competition, consumer fatigue in growing tech ecosystem
IN today’s hyper-digital world, mobile apps are everywhere. From banking to food delivery, entertainment to education, there is an app for almost everything, but what happens when there are too many apps?
Called “app saturation”, this phenomenon has raised concerns about competition, redundancy and user fatigue.
Is Malaysia heading in the same direction as China and other tech-savvy nations or has the country reached a point where the sheer volume of apps have become overwhelming?
Let us explore what app saturation means, the modern obsession with app creation and the pros and cons of a digital world brimming with choices.
What is app saturation?
App saturation is when the number of applications exceeds the demand for them. Instead of offering unique or innovative solutions, different developers often end up creating multiple versions of the same idea.
This leads to excessive competition, making it harder for any single app to gain traction while overwhelming users with too many options. With millions of apps in stores, developers are finding it increasingly difficult to stand out. Even companies with significant marketing budgets struggle to get noticed, while smaller players often disappear into obscurity.
Users, on the other hand, are bombarded with similar-looking apps and struggle to decide which ones to install or keep.
App saturation in Malaysia
According to DataReportal and Statista reports last year, internet penetration stood at 97.4%, while smartphone usage was projected to reach 87.61% by this year.
The rise of the digital economy in Malaysia has led to a surge in app development across industries, including e-commerce, fintech, healthcare and entertainment. Taking that into consideration, here are the clearest indicators that Malaysia is moving toward
app saturation:
➤ Too many apps, not enough demand
The market is packed with apps offering nearly identical services. From ride-hailing to food delivery, Malaysians often have to juggle several different platforms for the same purpose.
➤ Consumer fatigue
Many users prefer mobile web browsing over downloading yet another app, signaling a growing reluctance to clutter phones with redundant applications.
➤ Stagnant mobile subscriptions
With mobile subscriptions nearing saturation, most Malaysians already have internet access, limiting the potential for further app adoption and growth.
While Malaysia may not yet be as saturated as China, where super apps such as WeChat dominate the digital landscape, the country is heading in that direction.
Race to create more apps
Why do developers keep churning out new apps even when the market is crowded with similar ones? There are several reasons:
➤ Potential for profit
The success of apps such as Grab and Shopee has inspired many to try their luck in the app economy. In-app purchases, ads and subscriptions can bring enormous financial rewards.
➤ Brand presence
Businesses see apps as a way to engage customers, build loyalty and offer a seamless experience beyond websites and social media.
➤ Solving specific problems
Some apps genuinely improve and streamline convenience, offering niche solutions that users find valuable.
➤ Low barrier for entry
With development tools available today – even those in the public domain – launching an app is easier than ever. This accessibility encourages more developers to enter the space, leading to even more saturation.
The blitz to create an app for every single thing will lead to a market where there are too many apps that perform the same functions, causing more harm than good.
Downsides of too much choice
Despite some benefits, app saturation has significant negatives:
➤ User fatigue
With so many apps offering the same services, users struggle to decide which one to use. Constantly downloading, managing and switching between apps can be exhausting.
➤ Phone storage, performance issues
Many users hesitate to install new apps due to limited storage space and concerns about battery drain.
➤ Security risks
Not all apps are secure and many are shoddily built. The more apps we install, the higher the chances of data breaches, phishing scams and privacy invasions. A flood of apps makes it harder for more scam-susceptible users to distinguish between safe and risky apps.
➤ Diminishing returns for developers
More apps mean tougher competition. Many startups struggle to gain visibility and only a handful achieve success. High marketing costs and challenges attracting new users make it difficult for new apps to survive.
Good side of digital app boom
That said, it is not all bad. Having a wide variety of apps and a thriving digital ecosystem comes with several advantages:
➤ More choices
A competitive app market results in providing a variety for users to pick apps that best suit their needs. If one food delivery app has high prices or slow service, customers can simply switch to another.
➤ Fuels innovation
App developers constantly strive to create better, more efficient solutions. Competition breeds creativity, leading to new and improved features that benefit users.
➤ Economic growth
The app industry generates jobs, from developers to marketers and contributes significantly to Malaysia’s digital economy.
➤ Convenience and digital transformation
Apps simplify everyday tasks, making services more accessible at the tap of a button. Whether it is banking, shopping or remote work, digitalisation has transformed the way we live.
Here on out
As Malaysia moves closer to full digitalisation, navigating app saturation will require smarter strategies from developers and businesses. What developers can do is focus on improving user experience and solving real problems, as opposed to just rushing to create another version of an existing app.
Malaysia’s app ecosystem is thriving, but saturation is becoming a real issue. How many e-wallet apps do we need when they all do the same thing? While a digital world filled with choices offers convenience and innovation, an overload of apps can also lead to frustration and inefficiency.
For developers, the challenge is to create apps that truly add value, rather than submit to base capitalistic instincts by simply joining the race to build yet another version of what already exists. As for users, being more selective about the apps they use could help shape the market toward more sustainable digital solutions.
At the end of the day, the future of Malaysia’s app ecosystem is not purely about having more apps, but it is about having better apps, which is where the real opportunity lies.
