The global online dating application market size was valued at USD 7,939.2 million in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 7.6% from 2023 to 2030. Online dating applications are gaining tremendous popularity among young individuals, especially millennials. The usage of these apps has witnessed a tremendous rise, especially among the LGBTQ+ community, owing to the social stigma associated with the community in many countries. The industry is highly fragmented with a large number of local as well as global players in the market. Companies are taking advantage of the growing popularity of smartphones, increasing internet speed, and accessibility. There is a rise in users exploring the applications through their smartphones, allowing them to access online dating services at their convenience.
Moreover, the growing demand for paid subscriptions is expected to spur market growth during the forecast period. The success rate of marriage is declining and the number of singles is increasing all around the world. The recent trend observed among people, particularly the younger age group, is prioritizing career over getting settled and married. Most people now prefer to live alone. This factor is playing a significant role in increasing the popularity of online dating. Several statistics have highlighted the growing trend of staying unmarried among individuals in different parts of the world.
Most countries lack a clear legal framework for online dating applications to prevent sexual violence and online gender-based violence. Regulators across the world are trying to regulate or at least provide rules for dating apps as they try to protect the individuals using these apps. In the U.K., in 2013, the market players set up the Online Dating Association (ODA) to take collective responsibility for the market and operations. In Singapore, through the Social Development Network, the government has been actively regulating matchmaking apps.
The COVID-19 pandemic has had a favorable effect on the market. In terms of the total number of COVID-19 patients worldwide, Europe and the Asia Pacific were among the worst impacted regions. Additionally, things became worse in the U.S. Governments throughout the world issued orders for a complete lockdown, staying at home, and social seclusion due to the virus's rapid spread. People's social and romantic lives were impacted by the total lockdown. As singles searched for companionship and connection amid their social isolation, the use of apps increased dramatically.
At the start of the pandemic, demand for dating applications spiked. OkCupid reported a "700% spike in dates" between March 2020 and May 2020, and video calls on Bumble increased by 70%. Tinder recorded 3 billion swipes in one day in March 2020 and declared 2020 to be its busiest year. In comparison to 2019, Hinge's sales increased in 2020. Throughout the pandemic, this increased demand persisted. With the pandemic scenario in mind, several companies added additional functions to the dating app. A few of the unique aspects of the pandemic include gamification of discussions, vaccination badges, and virtual badges that show users are open to virtual dating and video calling. New tools were needed as app users grew more interested in meaningful connections.
The subscription segment led the market and accounted for more than 62% share of the overall revenue in 2022 owing to the increasing subscriptions given the extra features in paid subscriptions, such as no ads, unlimited likes, and read receipts among others. The subscription segment is expected to grow at a CAGR of 7.7% during the period 2023 to 2030. Based on subscription, the market is further sub-segmented into age, gender, and type. By age, the subscription segment is categorized into four age groups: 18-25 years, 26-34 years, 35-50 years, and above 50 years. The 18-25-year age group accounted for the highest market share of about 58% in the year 2022.
The 18-25-year age group leads in terms of share owing to the fact that the younger generation is more inclined towards application. The younger generation is using these apps not only to find romantic relationships but also platonic friendships. The usage of these apps among the 26-34-year age group is rising owing to the high divorce and separation rates. People use dating apps to give themselves a second shot at love or romance. The 26-34-year age group is expected to be the fastest-growing segment accounting for a CAGR of 8.0%.
North America accounted for the highest share of about 36% in the global market. The high market share is owing to the presence of a large number of players in the North America online dating application industry. Prominent players like Tinder and Bumble all have their roots in North America. Further, in North America, the U.S. accounted for the highest share of about 58 percent in the year 2022. In terms of growth, Canada is expected to grow at the fastest rate at an anticipated CAGR of 7.3% during the forecast period.
Asia Pacific is estimated to be fastest growing region over the forecast period. The regional share was valued at USD 1,764.8 Million in 2022 and expected to exhibit fastest growth. The growth in the region is primarily driven by the large single population in the region, the growing purchasing power of the consumers, and urbanization among others.China and India together held the majority of share in the region, accounting for about 58% share in the Asia-Pacific region.
Market players in the online dating application industry are adopting technologies such as artificial intelligence in online dating applications. Several new features are being introduced regularly on these dating apps in an attempt to keep their existing consumer base satisfied as well as expand their consumer base. Industry players are undertaking mergers and acquisitions with their competitors to expand their geographic presence and capture the escalating market potential. For instance, in February 2022, Bumble Inc. announced the acquisition of Fruitz, a dating app specifically catered for the younger audience generally called Gen Z. Fruitz has seen rapid growth across France, Netherlands, Belgium, Sweden, Switzerland, and Canada in recent years. The acquisition would enable Bumble Inc. to expand its presence in these countries.
Major market players are also extensively focusing on product development to further expand their customer base. For instance, in February 2022, Tinder introduced its Blind Date feature. Blind Date is a social experience that pairs users before allowing them to view each other's profiles, making the first impression based on dialogue rather than photographs. Members who utilized the Blind Date option made 40% more matches than those who used the Fast Chat function with profiles exposed in early testing, indicating daters' eagerness to communicate. Some prominent players in the global online dating application market include:
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