Global consumer spending on apps to reach $270 billion annually by 2025

Global consumer spending on premium apps, in-app purchases, and subscriptions across Apple’s App Store and Google Play will reach $270 billion annually by 2025, nearly 2.5 times what consumers spent in 2020 as Covid-19 accelerated mobile trends.

According to data provided by app analytics firm Sensor Tower, Covid-19 supercharged global consumer spending in mobile apps during 2020, which climbed 30 per cent year-over-year to $111 billion.

While year over year growth in spending will return to pre-pandemic levels over subsequent five years, gross sales on both app stores will still climb annually with a 19.5 per cent compound annual rate of growth (CAGR) to succeed in $270 billion in 2025.

The App Store will see a CAGR of 21 per cent through 2025, reaching $185 billion annually. Consumer spending on Google Play is projected to experience a 17 per cent CAGR, hitting $85 billion annually within subsequent five years.

Consumer spending within the US will grow at a rather slower pace than the worldwide trend, climbing to $74 billion in 2025 at a CAGR of 17.7 per cent. The US App Store will experience a CAGR of 19.6 per cent and Google Play will climb 14 per cent to $51 billion and $23 billion, respectively.

First-time downloads achieved their highest growth since a minimum of 2016 in 2020, surging 24 per cent y/y to 143 billion. Although the pace of installs will slow as markets begin recovering from the pandemic, both the App Store and Google Play will continue experiencing stable y/y growth.

By 2025, non-game apps will widen their lead even more, reaching $107 billion while mobile games will reach $78 billion.

Accelerated by the Covid-19 pandemic, consumer spending in mobile apps increased by 30 per cent year-over-year in 2020 to $111 billion. While YoY increase in spending is probably going to return to pre-pandemic levels over subsequent five years, gross sales on both app stores will still grow annually with a 19.5 per cent compound annual rate of growth (CAGR) to succeed in $270 billion in 2025, as per the report.

As per Sensor Tower’s forecasting, the App Store will see a CAGR of 21 per cent through 2025 to succeed in $185 billion annually while consumer spending on Google Play is probably going to ascertain a 17 per cent CAGR, hitting $85 billion annually within subsequent five years.

Apart from spending, first-time downloads which achieved their highest growth since a minimum of 2016 in 2020 also are projected to extend significantly. First-time downloads increased by 24 per cent YoY to 143 billion in 2020.