Rising Consumer Interest Drives Mobile App Spending in 2024

Mobile App Spending Surges in 2024

Consumer spending on mobile applications reached an impressive $150 billion, showcasing the increasing demand for digital services. Notably, consumer engagement with AI-related apps surged by an astonishing 300% compared to previous years.

Key Findings from the Mobile Industry Report

The annual report unveils significant insights as it evaluates consumer behavior and spending trends in 2024. Mobile app spending on in-app purchases and subscriptions rose by 13% year-over-year (YoY), indicating a robust growth trajectory. Furthermore, users collectively spent a staggering 4.2 trillion hours on their devices globally, up 5.8% YoY.

Non-Gaming Apps Lead the Way

A noteworthy trend revealed by the findings shows non-gaming apps outpacing their gaming counterparts in terms of consumer spending for the fourth consecutive year. Non-game app expenditures climbed by approximately $14 billion in 2024, reflecting a remarkable growth rate of 25% YoY. Among these, the Film & Television Streaming sector attracted $11.9 billion, while Social Media apps garnered $11.7 billion in consumer spending.

AI Applications Capture Consumer Attention

AI applications made a significant impact in 2024, with a remarkable increase in consumer spending in this category. AI Chatbots, such as ChatGPT and Google Gemini, drew in nearly $1.1 billion, marking an incredible 200% increase YoY. This acceleration positions these apps to potentially enter the top ten for consumer spending within a very short timeframe.

Increased AI Engagement

Time spent on AI-related apps approached 7.7 billion hours, reinforcing the public's growing fascination with AI capabilities. Apps that prominently featured AI technology experienced 17 billion downloads, indicating a responsive consumer base eager for innovative solutions.

Expert Insights on App Trends

According to Oliver Yeh, Chief Executive Officer and Cofounder of Sensor Tower, the trends are clear. "Apps continue to capture consumer attention, particularly in non-gaming sectors. As people spend more time on mobile, they feel increasingly comfortable purchasing through their devices. Companies are adapting their monetization strategies to cater to this expanding user base, improving their overall digital experience. We anticipate further experimentation with AI in apps, bringing fresh and creative integrations to the forefront," Yeh said.

The Importance of Enhanced User Experience

The report highlights a potential shift in consumer sentiment as digital fatigue begins to take root within popular app categories, more specifically streaming services. Despite previous highs, engagement levels have shown signs of a slight decline. However, the report emphasizes that apps designed to enhance in-person experiences continue to grow. For instance, Food & Drink app downloads surged by 8.5% YoY, with session counts rising by 9.2%, as more businesses incorporate applications into their buying processes.

Highlights from the 2024 Mobile Landscape

Here are some remarkable highlights from the report:

• New Billion-Dollar Achievements: Several games and one app joined the exclusive billion-dollar club, which includes notable names such as Last War and WeTV, crossing the $1 billion mark in consumer spending.
• Rapid AI Adoption: ChatGPT experienced a meteoric rise with 50 million Monthly Active Users, achieving this milestone more quickly than major platforms like Temu and YouTube Music.
• Financial Apps on the Rise: The popularity of finance apps soared, driven by the increased use of digital wallets and mobile banking, approaching 7.5 billion downloads.
• Fiscal Globalization with Cryptocurrency: Apps like Binance ranked sixth and Tonkeeper ninth among the top finance apps globally.
• Retail Expansion: Chinese e-tailers, including Temu and SHEIN, significantly expanded into various global markets, dominating retail app downloads.
• Streaming App Market Challenges: Although streaming apps have increased in revenue and downloads, user engagement is dwindling due to digital fatigue, complicating loyalty for newer platforms.

Final Thoughts on Mobile App Trends

Sensor Tower's detailed exploration of the 2025 State of Mobile reveals significant insights into regional and category-level performance in the market. As the digital economy continues to evolve, staying abreast of these trends will empower brands and developers to make informed decisions and strategically adapt to market demands.

About Sensor Tower

Founded in 2013, Sensor Tower stands as a premier source for mobile app insights, digital advertising, and retail media that brands and app publishers rely on globally. Sensor Tower's mission is to provide visibility into the mobile app landscape, enabling organizations to stay ahead in an ever-changing market. With rich insights into user engagement and promotional strategies, Sensor Tower assists clients in navigating the complexities of the digital app ecosystem.

Frequently Asked Questions

What does the report say about consumer spending in mobile apps?

The report indicates that consumer spending on mobile apps reached $150 billion globally, with notable growth in non-gaming app sectors.

How has AI impacted mobile app usage?

AI applications saw significant engagement, with nearly $1.1 billion spent on AI-related apps, reflecting a rapid increase in consumer interest.

Which app categories are experiencing the most growth?

Non-gaming apps, particularly those in Film & Television Streaming and Social Media, showed strong growth in consumer spending.

What challenges are present in the streaming app market?

Streaming apps are facing signs of digital fatigue among users, leading to a decline in engagement despite revenue growth.

How has Sensor Tower evolved since its inception?

Since 2013, Sensor Tower has expanded its insights beyond mobile apps to include audience analytics and advertising strategies, enriching its market offerings.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. If any of the material offered here is inaccurate, please contact us for corrections.