Samarth I In-app purchases soar to $150 billion in 2024, with gaming dominating but e-commerce and streaming on the rise, according to Sensor Tower.
Mobile app revenue has hit a new milestone in 2024, reaching a staggering $150 billion, marking a 12.5% year-on-year increase, according to new data from Sensor Tower. While gaming continues to dominate, accounting for the lion’s share of in-app purchases (IAPs), sectors like e-commerce and streaming are making notable strides.
Games remain the king of mobile spend, generating over $80 billion in IAP revenue last year. However, the real story lies in the dramatic growth of non-gaming apps. In 2024, mobile e-tailers and streaming services combined to bring in nearly $14 billion in IAP revenue—up from approximately $9 billion in 2023. This surge underscores the shift in consumer behavior, where users are increasingly willing to make purchases in-app for non-gaming experiences.
While the growth in app revenue is robust, the rate of app downloads has begun to slow. In 2024, global mobile app downloads totaled 136 billion, a slight dip of 1% from the previous year. Despite this slowdown, the mobile app market continues to expand, with new revenue channels emerging alongside traditional game-based models.
Looking ahead, as e-commerce and streaming services gain traction in the mobile space, the app ecosystem is set for further diversification. Brands will need to adapt to this shift, offering seamless, frictionless purchase experiences to cater to growing consumer demand for convenience and personalization.
