Mobile App Economy Thrives as AI Fuels Consumer Spending Growth

Mobile Applications Surge in Popularity

Consumer spending on mobile applications reached an astonishing $150 billion in recent assessments, highlighting a dynamic market driven by an increased engagement with technology. Interestingly, apps linked to artificial intelligence saw an impressive growth of over 300% in usage time. This points to the clear trend of users gravitating towards apps that infuse AI capabilities.

The State of Mobile Spending

Recent reports unveiled by industry analysts reveal significant shifts in consumer spending habits. Globally, for the year preceding this publication, consumer expenditure on in-app purchases and subscriptions increased by an impressive 13% year-on-year. In total, users across the globe dedicated approximately 4.2 trillion hours to mobile applications, a 5.8% rise compared to the previous year. However, app downloads slightly declined to 136 billion, indicating an emerging trend of selective app usage among consumers.

Non-Gaming Apps Dominate the Market

The influence of non-gaming applications is evident. For the fourth year running, spending in non-gaming categories surpassed that of games. Non-game expenditures soared by around $14 billion, showcasing a remarkable 25% growth. Key players in this domain include Film & Television Streaming, which accounted for $11.9 billion, and Social Media apps, amassing $11.7 billion in consumer spend.

AI Applications Take the Limelight

Among various categories, AI applications emerged remarkably. The fervor for generative AI technologies propelled consumer spending in this segment to nearly $1.1 billion, marking an extraordinary 200% year-over-year growth. Popular AI applications, including ChatGPT and Google Gemini, demonstrated substantial user engagement, with total hours spent in such applications reaching nearly 7.7 billion. Notably, apps featuring AI garnered a staggering 17 billion downloads, underscoring the growing interest in AI functionalities among consumers.

Shifts in Consumer Engagement and Spending Habits

As consumers continue to engage significantly with mobile technology, they are increasingly comfortable with making purchases online. This pattern underlines the transformative nature of mobile apps, which have adeptly shifted their monetization strategies to cater to a more engaged audience. The expectation moving forward is that more applications will explore AI-centric features, reimagining ways to enhance the consumer experience.

Emerging Trends and Key Findings

While certain categories, such as streaming, show signs of digital fatigue, the report sheds light on the rising success of applications enhancing physical customer interactions. Increased downloads and session counts in Food & Drink applications have demonstrated the demand for seamless integration into customer purchasing processes. Here are additional insights into recent trends:

• New Members in the Billion Dollar Club: A new cohort of five applications, including popular titles like Last War and Brawl Stars, celebrated crossing the $1 billion threshold in consumer spending.
• The Rise of AI: ChatGPT has surged to 50 million monthly active users, experiencing growth at rates unmatched by competing platforms.
• Convenience in Financial Services: Financial applications have maintained robust growth, driven by the integration of digital wallets and mobile banking, nearing 7.5 billion downloads.
• Global Retail Expansion: E-commerce applications like Temu and SHEIN continue their global expansion, showing strong performance in diverse markets across Europe and Latin America.
• Streaming App Market Saturation: Despite ongoing revenue growth, streaming apps have faced challenges in user engagement due to rising digital fatigue.

Conclusion

According to recent assessments by industry leaders, the 2025 State of Mobile report offers a comprehensive view of market dynamics, reflecting both challenges and opportunities within the mobile app ecosystem. For those intrigued by the evolving technological landscape and consumer behaviors, continuous adaptations and innovative strategies will be vital for success in the mobile arena.

About Sensor Tower

Sensor Tower stands as a premier source for mobile app analytics, digital advertising, and retail media insights tailored for leading global brands and app publishers. Established in 2013, Sensor Tower's insights guide marketers and developers in understanding and navigating the complex mobile ecosystem effectively.

Frequently Asked Questions

What was the consumer spending on mobile apps in 2024?

Consumer spending on mobile apps hit $150 billion globally in 2024, marking a robust growth in this sector.

Which categories saw the most growth in app spending?

Spending in non-gaming applications significantly outpaced gaming, with categories like Film & Television Streaming and Social Media leading the charge.

How did AI apps perform in 2024?

AI applications experienced a remarkable surge, with consumer spending reaching nearly $1.1 billion, highlighting the growing interest in AI-driven experiences.

What challenges are streaming apps facing?

Streaming apps are experiencing digital fatigue, leading to challenges in user engagement and retention in a crowded market.

What is Sensor Tower's mission?

Sensor Tower aims to provide unmatched insights into the mobile app ecosystem, empowering organizations to adapt to market changes efficiently.

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