AI-driven personalization and gaming revival push global app spending to $150B in 2024, the highest growth since 2021.
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| In-app purchases surged to $150B in 2024, reflecting strong mobile market growth even as digital fatigue slows overall engagement. Image Courtesy: Pexels |
San Francisco, California, USA — February 8, 2025:
Global in-app purchase (IAP) revenues on iOS and Google Play surged to an unprecedented $150 billion in 2024, marking a 13% year-on-year increase—the highest growth rate since 2021, according to Sensor Tower’s annual report. These figures highlight the resilience of the mobile ecosystem, even as digital fatigue and market saturation present new challenges.
The report reveals key trends shaping the mobile sector, including AI’s expanding role, the revival of the gaming market, and the continued growth of non-gaming apps. While the mobile economy remains strong heading into 2025, industry players must adapt to a new phase requiring innovation to sustain growth.
The surge in IAP revenues is largely fueled by in-app purchases, subscription models, and paid app transactions. Despite record earnings, app downloads have plateaued, stabilizing at around 136 billion for the year. This stagnation indicates a maturing market where acquiring new users is increasingly difficult.
Consumers spent 4.2 trillion hours on iOS and Google Play apps in 2024, averaging 3.5 hours per day per user. However, the annual growth rate of 5.8% in total time spent on mobile fell below the 7.7% recorded in 2023, signaling emerging digital fatigue. In major markets like the United States, Japan, South Korea, and China, mobile usage has leveled off, pushing developers to prioritize engagement and retention over raw user growth.
As digital fatigue becomes a growing concern, app developers must refine user experience strategies. AI-driven solutions, personalized content, and enhanced subscription models will be crucial in maintaining engagement. The resurgence of the mobile gaming sector also presents fresh revenue opportunities, supporting overall market growth.
To navigate this evolving landscape, companies are focusing on making digital experiences more meaningful and efficient. Striking a balance between innovation and user well-being will be critical in defining the next phase of mobile market expansion.