Generation Z is expected to surpass millennials as the largest generation by the end of 2019, accounting for roughly 32 percent of the global population, said a new report.

With their growing spending power, Gen Z is on track to become a key driving force in the consumer market, mobile analytics company App Annie said in the report.

For instance, in the United States alone, 16-22 year olds spend $44 billion annually and influence an estimated $600 billionin spending. As more of Gen Z enters the workforce, companies without a strategy in place will fall behind, according to the report.

Gen Z refers to those born between 1997 and 2012, growing up in the internet age and familiar with mobile technology. On average, they have their first mobile phone at the age of ten, and 98 percent of Gen Z reported owning a smartphone, according to the report.

Specifically, the report found Gen Z spent less time and fewer sessions gaming than older generations.

The love of social media is another key point when discussing Gen Z. Unlike millennials who are considered to be the early adopters of the internet movement, Gen Z has grown up with social media as a core part of their daily lives, making them more reticent about sharing their personal lives.

The report noted staying in touch with friends was only the third most important reason Gen Z used social media. Filling up spare time and finding entertaining content were first and second respectively, which explains the popularity of apps such as TikTok among Gen Z.