How to Conduct Market Research Before Building an App

Before making any app, it is important to understand what the market really needs. Market research helps you find out what people are looking for, which features they like, and what other apps are already doing. This way, you don’t waste time or money on something that people don’t want.

In 2025, when thousands of apps are launching every month, doing proper research before development has become even more important. It helps you take decisions based on real data, not just assumptions.

✅ Fact: According to a 2024 report by Statista, more than 100,000 new apps are uploaded to app stores every month, but only around 1% of them become successful in the long run. One major reason is that many apps are built without proper market research.

Source: Statista – Number of apps in major app stores

Let’s go step by step and understand how to do proper market research before starting your app.

1. Define Your Research Objectives

Before starting any research, first decide what you want to find out. Setting clear goals helps you stay focused and avoid wasting time.

Some common reasons for doing market research include:

• Validating the App Idea: Check if people really want the type of app you are planning to build.
• Understanding the Target Audience: Find out who your users will be and what problems they are facing.
• Analyzing Competition: Study existing apps to see what they are missing and what you can do better.
• Assessing Market Trends: Understand what’s changing in the industry, like new technologies (e.g., AI, Web3).
• Estimating Market Size: Find out how big your user base can be and what kind of income is possible.

✅ Example: If you are planning to make a fitness app, your research objective can be to check how many young people are interested in AI-based workout plans made just for them.

2. Identify Your Target Audience

Knowing who your users are is very important. It helps you design the app in a way they will like and also plan better marketing.

Follow these steps to identify your audience:

• Create User Personas: Make sample profiles of your ideal users. Include age, gender, location, interests, values, and how they use apps.
• Segment the Market: Group users based on their needs. For example, casual users vs. heavy users, or free users vs. paid users.
• Use Analytics Tools: Tools like Google Analytics, Statista, or SimilarWeb can help you find useful data about your users – like their age, location, and online behaviour.
• Check Social Media Discussions: Platforms like X (formerly Twitter), Reddit, and LinkedIn are good places to see what people are talking about and what problems they are facing.

✅ Trend Insight (2025): Today, users expect apps to fit their personal needs. AI-based tools like customer data platforms (CDPs) can help understand user behaviour and divide your audience into clear, useful groups.

3. Conduct Competitive Analysis

To build an app that stands out, you need to know what other similar apps are already offering. A proper competitive study helps you find their strengths, weaknesses, and areas where you can do better.

Here’s how to do it:

• Identify Competitors: Look for apps that offer similar features (direct competitors) and also other options people use instead (indirect competitors). Use Google Play Store, App Store, or tools like App Annie and Sensor Tower to find them.
• Analyze Features: Compare their main features, design, pricing, and how they make money. Note down what users like and where the app is not doing well.
• Study User Reviews: Go through reviews on app stores, X (Twitter), and forums. See what users complain about and what they wish the app had.
• Check Market Positioning: Understand how each app presents itself in the market — their branding, marketing messages, and what makes them different (USP).

✅ Example: If you’re building a meditation app, check apps like Headspace and Calm. You may notice they don’t offer region-specific practices or strong community features — which can be your opportunity.

✅ Trend Insight (2025): Some apps are now using Web3 technologies — like storing user data on blockchain or giving NFT rewards for achievements. See if any of your competitors are using these features, and decide if it makes sense for your app too.

4. Analyze Market Trends

Following the latest market trends helps you build an app that meets current user expectations and stays relevant in the future.

Here are some key trends in 2025:

• AI and Machine Learning: More apps now use AI to give personalized experiences — like workout apps that change plans based on your progress.
• AR/VR Integration: Augmented Reality (AR) and Virtual Reality (VR) are being used more in games, education, and fitness apps.
• Web3 and Blockchain: New apps are using blockchain for things like secure data and crypto-based rewards, especially in finance and gaming sectors.
• Sustainability Focus: Users like apps that follow eco-friendly practices — like using carbon-neutral hosting services.
• Voice and Multimodal Interfaces: With tools like Grok 3’s voice mode, apps are allowing users to interact using voice commands or combined inputs like voice plus touch.

How to Research Trends:

• Industry Reports: Use reports from companies like Gartner, Forrester, or Statista to understand the latest app trends.
• X Platform Monitoring: Search for real-time updates using hashtags like #AppDevelopment or #TechTrends on X (formerly Twitter).
• Conferences and Webinars: Attend major tech events like CES 2025 or Mobile World Congress to get the latest ideas and case studies.
• Patent Analysis: Check Google Patents to see what kind of new technology is being developed in your category.

✅ Tip: Try to mix long-term trends (like AI or Web3) with short-term fads (like a viral interface) to stay balanced.

5. Gather Primary Data

Primary research means collecting information directly from your target users. It helps confirm whether your app idea matches what people really want.

Here are some easy ways to do primary research:

• Surveys and Questionnaires: Use free tools like Google Forms, Typeform, or SurveyMonkey to ask questions. For example, ask users what features they want most in a productivity app.
• Interviews: Talk to potential users one-on-one to understand their problems and what they expect from such an app.
• Focus Groups: Bring together a small group of users and discuss your app idea with them. This gives you multiple opinions in one session.
• Usability Testing: Make a basic version (mockup or prototype) and ask real users to try it. See where they get confused or face problems.

✅ Trend Insight (2025): AI-powered sentiment analysis tools can now read responses from surveys and detect emotional patterns. This helps you understand not just what users say, but also how they feel — which improves the emotional connection of your app.

6. Collect Secondary Data

Secondary research means using data that already exists. It helps support the information you got from your own surveys and interviews.

Here are some reliable sources for secondary research:

• Industry Reports: Use websites like Statista, IBISWorld, or App Annie to find data on market size, user habits, and future growth.
• Competitor Websites and Blogs: Study what your competitors are writing. Their blogs, case studies, or FAQs often reveal their strategies and who they target.
• Academic Journals: Use Google Scholar to find research papers on how people use technology or apps like yours.
• X and Social Media: Check platforms like X (formerly Twitter) to find real user opinions and see what topics are trending in your app category.

✅ Example: If you're building a budgeting app, secondary research might show that 60% of Gen Z users prefer gamified finance tools — as mentioned in a 2025 Statista report. This tells you that adding game-like features could attract younger users.

7. Validate Your App Idea

After collecting all your research, the next step is to check if your app idea really makes sense in the market. This helps you avoid building something that people don’t need or want.

Here are some simple ways to validate your app idea:

• Problem-Solution Fit: Make sure your app solves a real problem. For example, if people have trouble managing their time, your app could use AI to help them set priorities.
• Market Demand: Use tools like Google Trends or Keyword Planner to see how many people are searching for topics related to your app idea. High search volume usually means strong interest.
• MVP Testing: Build a basic version of your app (called an MVP) and test it with a small group of users. Collect feedback and see if they are willing to use or pay for it.

✅ Trend Insight (2025): Today, you can use tools like Figma or Bubble to quickly build interactive app models. This allows you to test your idea faster without doing full coding in the beginning.

8. Assess Monetization and Pricing Strategies

To make your app successful, you need a clear plan for how it will earn money. Based on your market research, choose the right pricing and revenue model.

Here are some popular monetization models in 2025:

• Freemium: Offer basic features for free, and charge users for extra or premium features. Example: Spotify.
• Subscription: Charge users monthly or yearly to access the app. Example: Netflix.
• In-App Purchases: Sell digital products or features inside the app. Example: Items in gaming apps.
• Ads: Show advertisements to users and earn from views or clicks. Common in free games or content apps.
• One-Time Purchase: Charge users only once for full access. This model is less common in 2025 but still used in niche apps.

How to Research the Right Model:

• Check Competitors: Use tools like Sensor Tower to see how similar apps earn money.
• Survey Users: Ask your target users how much they are willing to pay and what features they value most.
• Explore New Trends: Some Web3 apps now use crypto-based micropayments or offer NFT-based rewards. If your app suits that audience, this could be a unique option.

9. Evaluate Technical Feasibility

Before building the app, it’s important to check if the idea is technically possible with the current tools, budget, and team you have. This step helps avoid delays or extra costs later.

Follow these steps to check feasibility:

• Technology Stack: Find out if your app will need advanced technologies like AI, AR, or blockchain. Also, check how much it will cost to build and maintain them.
• Platform Compatibility: Decide whether you will build the app for Android, iOS, or both. Choose based on what your target users mostly use.
• API Availability: Check if you can use ready-made APIs for important features. For example, xAI’s Grok 3 API can be used for voice-based AI features.

✅ Trend Insight (2025): Frameworks like Flutter and React Native are now commonly used to build apps for both Android and iOS at the same time. This helps save time and money.

10. Synthesize Findings and Create a Report

Once all the research is done, put everything together in a clear report. This report will help your team and investors understand your plan and guide the app development process.

Here’s what your report should include:

• Executive Summary: A short summary of your main research findings and what you recommend.
• Target Audience: Details about who your users are — including user personas and audience segments.
• Competitive Analysis: List of main competitors, their strengths and weaknesses, and where your app can stand out.
• Market Trends: Overview of key trends (like AI, Web3, or AR) and how they can impact your app.
• Validation Results: Show data from surveys, MVP testing, or interviews that confirm people want your app.
• Monetization Strategy: Your selected pricing model and why it fits your audience and market.
• Next Steps: What to do next — like building a prototype, improving features, or planning your launch.

✅ Example: A report for a language-learning app might suggest targeting Gen Z with gamified lessons, adding AI chatbots for practice, and using a freemium model — based on competitor performance and user interest.

11. Iterate and Refine

Market research doesn’t stop after your app is launched. You should keep learning from users and update your strategy as new trends come in. This helps you stay ahead of the competition and keep your users happy.

Here are some easy ways to keep improving:

• Monitor User Feedback: Check app store reviews and posts on X (formerly Twitter) to understand what users like or dislike after launch.
• A/B Testing: Try different versions of a feature or design and see which one works better. This helps improve user experience step by step.
• Stay Updated: Keep an eye on latest tech news and trends through industry reports and platforms like X. New updates like generative AI or 5G-based experiences may open new opportunities for your app.

12. Legal and Regulatory Research

Before launching your app, it’s important to follow the legal rules related to data, privacy, and platforms. This helps you avoid fines, rejections, or even getting banned from app stores later.

Here’s what to include in your legal research:

• Data Protection Laws: Check privacy laws like GDPR (Europe), CCPA (California), or your local laws. These are important if your app collects any personal data from users.
• App Store & Play Store Policies: Make sure your app follows platform rules. Google and Apple have strict guidelines for content, ads, payments, and user data.
• Copyright and Trademark Checks: Verify that your app name, logo, and content don’t copy someone else’s brand. This avoids legal trouble in the future.

✅ Example: If you are making a finance app in India, you must follow RBI rules. If your app will be used in Europe, you need to comply with PSD2 regulations for payments and user security.

13. Platform-Specific Research

Different platforms like iOS, Android, and Web behave differently in terms of user habits, spending, and popularity. Knowing these differences helps you build the right version of your app first and save time and cost.

Here’s what to check in platform-specific research:

• User Spending Behavior: iOS users usually spend more on apps compared to Android users. So, if your app has in-app purchases or subscriptions, this matters.
• Regional Preferences: In Asia and Africa, Android is more popular. In the US, many users prefer iPhones. Choose the platform based on where your main audience is located.
• PWA Performance: Progressive Web Apps (PWAs) are growing in 2025. They are useful when you want one app that works on all devices without downloading. Study how they perform for your app type.

Tool Tip: Use Apple App Store Connect and Google Play Console to get data on user behavior, installs, and more for both platforms.

14. Localization & Cultural Fit

What works well in one country may not work in another. Every region has different user habits, languages, and expectations. To make your app truly global, you need to adjust it for local needs.

Here’s what to focus on for localization:

• Language Preferences: Support local languages and use simple words. Also, make sure your content is culturally sensitive.
• UI/UX Behavior Patterns: In some countries, users prefer minimalist designs, while others like more visuals or buttons. Study how people in different regions interact with apps.
• Payment Habits and Currency: Payment methods vary by region. Offer local options like UPI in India or SEPA in Europe. Show prices in the user’s local currency.

✅ Example: In India, users expect apps to support UPI payments. In Europe, following SEPA regulations is important for banking or financial apps.

15. Risk Analysis and Validation Metrics

Understanding risks and how strong your app idea is can help you plan better and convince investors or partners. It shows that you’ve thought through the challenges and have a smart approach to handle them.

Here’s what to include in your risk and validation study:

• Risk Matrix: Make a simple chart to list all major risks — like technical difficulties, market uncertainty, or legal issues — and rate them as low, medium, or high risk.
• Validation Scoring Model: Create a score system based on key factors like demand, competitor strength, and how easy it is to build the app. This helps compare different app ideas or plan your priorities.
• Red Flags: Watch out for early warning signs like too much competition, low user interest, or app categories with high uninstall rates.

✅ Example: If your idea falls into a saturated niche like calorie tracker apps, and users tend to leave after a week, that’s a red flag — unless you have a unique feature or approach.

Tools and Resources for Market Research (2025)

These tools can help you gather, study, and apply useful data for your app research. Each tool is widely used by startups and large tech teams:

• Analytics Platforms:
  • App Annie (now data.ai): Tracks app rankings, usage, and downloads. Visit data.ai
  • Sensor Tower: Provides insights into mobile app performance and ad spending. Visit Sensor Tower
  • SimilarWeb: Analyzes traffic sources, user demographics, and competitor data. Visit SimilarWeb
• Survey Tools:
  • Google Forms: Free tool for creating quick surveys. Visit Google Forms
  • Typeform: Interactive form builder ideal for mobile-friendly user surveys. Visit Typeform
  • SurveyMonkey: Advanced survey platform for user research. Visit SurveyMonkey
• Social Listening Tools:
  • Brandwatch: Analyzes social conversations to understand public opinion. Visit Brandwatch
  • Hootsuite: Schedules posts and tracks brand mentions across platforms. Visit Hootsuite
  • X (formerly Twitter): Use search filters and hashtags to explore trends and feedback. Search on X
• Prototyping Tools:
  • Figma: Popular for collaborative UI/UX design. Visit Figma
  • Adobe XD: Used for designing interactive app prototypes. Visit Adobe XD
  • Bubble: Build working web apps without writing full code. Visit Bubble
• Trend Analysis:
  • Google Trends: Shows what people are searching for. Visit Google Trends
  • Statista: Offers charts and reports on market size and consumer behaviour. Visit Statista
  • Gartner: In-depth research and trend analysis for tech planning. Visit Gartner
• API Research:
  • xAI API: Check out AI-based features such as voice interaction and assistant capabilities. Visit xAI API

Conclusion

Doing proper market research is very important if you want to build an app that people actually use and like. In today’s crowded app market, just having an idea is not enough — you need real data to support it.

By setting clear goals, knowing your users, checking your competitors, and following new trends like AI or Web3, you can create a strong strategy that increases your app’s chances of success.

Start with small steps like surveys or MVP testing, and keep improving your app based on user feedback.

✅ Want expert help with app planning or development?

Contact GreyBath Technology or Chat with us on WhatsApp to start your app journey the right way.