The worldwide app economic system continued to get well in 2024, after an earlier slowdown in 2022 — at the least by way of client spending. In 2024, international client spending in cellular apps and video games reached $127 billion throughout the App Retailer and Google Play, up 15.7% from the prior yr. Nonetheless, these will increase have been pushed by Apple’s App Retailer, as Google Play spending declined, in line with new knowledge from app intelligence agency Appfigures.
Although spending was up, there was one other worrying signal concerning the general well being of the app ecosystem. This yr, international app downloads have been down by 2.3%, in contrast with 2023, reaching practically 110 billion. This downward development was seen throughout each app shops, the info signifies.
This isn’t the primary time we’ve seen indicators that the app ecosystem’s huge development could also be lastly beginning to stage out. Because the app economic system matures, the more moderen focus has been on extracting income from the apps shoppers are already utilizing through ongoing subscriptions, quite than driving them to obtain new apps or paid apps.
Of be aware, solely 5% of apps worldwide supplied subscriptions final yr, however they accounted for 48% of the app income throughout each app shops, Appfigures discovered. As well as, the highest 10 incomes apps globally generated 13.7% of all client spending, up 1.2% from 12.5% in 2023.
In the meantime, a lot of the innovation going down right this moment is within the discipline of AI — a development Apple largely snubbed when choosing its general App of the Yr over the previous couple of years. The award went to video app Kino and climbing app AllTrails in 2024 and 2023, respectively.
Downloads decline globally
Declining app downloads, in the meantime, was a development seen throughout each app marketplaces.
Of the whole 110 billion downloads in 2024, iOS downloads accounted for 28.3 billion installs, a decline of 1.1% year-over-year. Android app downloads on Google Play have been down 2.6% to 81.4 billion. Final yr, app downloads have been largely flat, one other report had discovered.
Partly, the decline in downloads additionally has to do with how Apple and Google Play managed their app shops in 2024.
Google, specifically, cracked down on spam and different low-quality apps this previous yr, resulting in a big 60% discount within the launch of recent apps on Google Play. This was seemingly pushed by elevated necessities for builders round app testing and app overview.
The U.S. additionally helped push the bigger international development down, as U.S. iOS downloads declined 5.3% to six.1 billion and U.S. Google Play app downloads dropped 0.7% to 4.4 billion. In complete, U.S. app downloads declined by 3.4% within the yr, reaching roughly 10.6 billion.
Instagram, not TikTok, was essentially the most downloaded app in 2024 with near 640 million installs. It was additionally essentially the most searched-for app within the U.S. Together with Instagram, different high social apps together with Snapchat, Fb, and TikTok have been additionally looked for greater than X in 2024.
Nonetheless, Temu was essentially the most downloaded app within the U.S. with 48 million installs, Appfigures discovered. Apple not too long ago confirmed it was the U.S.’s most-downloaded app on its App Retailer, too.
Mexico noticed the largest improve in app downloads in 2024, with 225 million extra installs than in 2023.
App Retailer continues to earn a living
When it comes to income, the app economic system remains to be earning profits for builders and app shops alike — at the least on the Apple App Retailer.
Of the $127 billion in complete client spending globally in 2024, $91.6 billion got here from the App Retailer, up 24% year-over-year. Google Play client spending declined by 1.5% year-over-year to succeed in $35.7 billion globally.
The U.S. accounted for a big portion of that general pie, as $47.6 billion in client spending got here from customers within the U.S., up 11% year-over-year. (The Apple App Retailer accounted for $34.4 billion of that U.S. determine, up 18.4%, whereas Google Play’s U.S. income declined 4.7% to succeed in $13.2 billion in 2024.)
By client spending, the highest app globally was TikTok, with an estimated $2.5 billion throughout iOS and Android, not counting app shops in China. TikTok was additionally the highest app within the U.S., drawing in practically $1.3 billion.
Brazil was the fastest-growing marketplace for client spending, up 73% year-over-year.
