The world app financial system continued to get well in 2024, after an earlier slowdown in 2022 — at the very least by way of client spending. In 2024, world client spending in cellular apps and video games reached $127 billion throughout the App Store and Google Play, up 15.7% from the prior 12 months. However, these will increase have been pushed by Apple’s App Store, as Google Play spending declined, in response to new information from app intelligence agency Appfigures.
Though spending was up, there was one other worrying signal concerning the general well being of the app ecosystem. This 12 months, world 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 information signifies.
This isn’t the primary time we’ve seen indicators that the app ecosystem’s large development could also be lastly beginning to stage out. As the app financial system matures, the newer focus has been on extracting income from the apps customers are already utilizing through ongoing subscriptions, relatively than driving them to obtain new apps or paid apps.
Of word, solely 5% of apps worldwide provided subscriptions final 12 months, however they accounted for 48% of the app income throughout each app shops, Appfigures discovered. In addition, the highest 10 incomes apps globally generated 13.7% of all client spending, up 1.2% from 12.5% in 2023.
Meanwhile, a lot of the innovation happening right this moment is within the subject of AI — a development Apple largely snubbed when choosing its general App of the Year over the previous couple of years. The award went to video app Kino and mountain 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 full 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. Last 12 months, app downloads have been largely flat, one other report had discovered.
In half, 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 12 months, resulting in a big 60% discount within the launch of recent apps on Google Play. This was probably pushed by elevated necessities for builders round app testing and app assessment.
The U.S. additionally helped push the bigger world 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 whole, U.S. app downloads declined by 3.4% within the 12 months, 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. Along with Instagram, different prime social apps together with Snapchat, Facebook, and TikTok have been additionally looked for greater than X in 2024.
However, Temu was essentially the most downloaded app within the U.S. with 48 million installs, Appfigures discovered. Apple lately confirmed it was the U.S.’s most-downloaded app on its App Store, too.
Mexico noticed the most important enhance in app downloads in 2024, with 225 million extra installs than in 2023.
App Store continues to generate income
In phrases of income, the app financial system continues to be creating wealth for builders and app shops alike — at the very least on the Apple App Store.
Of the $127 billion in whole client spending globally in 2024, $91.6 billion got here from the App Store, up 24% year-over-year. Google Play client spending declined by 1.5% year-over-year to achieve $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 Store accounted for $34.4 billion of that U.S. determine, up 18.4%, whereas Google Play’s U.S. income declined 4.7% to achieve $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.
