Global consumer spending on premium apps, in-app purchases, and subscriptions across Apple’s App Store and Google Play will reach US$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 US$111 billion.
While year-over-year growth in spending will return to pre-pandemic levels over the next five years, gross revenue on both app stores will continue to climb each year with a 19.5 per cent compound annual growth rate (CAGR) to reach US$270 billion in 2025.
The App Store will see a CAGR of 21 per cent through 2025, reaching US$185 billion annually. Consumer spending on Google Play is projected to experience a 17 per cent CAGR, hitting US$85 billion annually within the next five years.
Consumer spending in the US will grow at a slightly slower pace than the global trend, climbing to US$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 US$51 billion and US$23 billion, respectively.
First-time downloads achieved their highest growth since at least 2016 in 2020, surging 24 per cent YoY 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 YoY growth.
By 2025, non-game apps will widen their lead even more, reaching US$107 billion while mobile games will reach US$78 billion.