CapCut's rise challenges Adobe and Canva

CapCut, a video-editing app owned by ByteDance, has quickly gained popularity, posing a threat to Adobe and Canva.

Launched internationally in 2020, CapCut has amassed over 300 million monthly mobile active users, capturing a dominant 81% share of the mobile video editing market, as reported by Sensor Tower.

Adobe, a leader in desktop creative software, is feeling the impact. Users are shifting from complex software like Photoshop to simpler tools like Canva and CapCut.

Bloomberg reports a TikTok content creator named Jalen prefers CapCut for its ease of use and TikTok integration. Videos made with CapCut carry a watermark, inviting more users to try the app.

Tyler Radke, an analyst at Citigroup, notes that CapCut's mass adoption could divert new users from Adobe's Premiere Pro or After Effects.

Bloomberg also reports CapCut is expanding with a new desktop app, tools for small businesses, and a pro version at $9.99 per month. Sensor Tower estimates CapCut has earned $125 million on mobile this year.

Adobe is responding by making its tools more accessible, like the web-based Adobe Express, and adding AI features. However, their mobile editing apps still trail far behind CapCut in user numbers.

Canva, known for disrupting creative software, is also feeling the heat. Despite its efforts to enhance video creation, the rise of CapCut poses a challenge. Social media video creation on Canva is up 44% from last year, but CapCut's growth is formidable.

But CapCut, linked to TikTok, faces potential bans in the US due to security concerns.