App spending to reach $270B by 2025, new forecast predicts – ProWellTech

A new market forecast predicts that app spend will reach $ 270 billion by 2025, including paid downloads, in-app purchases, and subscriptions. According to data from Sensor towerIn-app spending will return to stable pre-pandemic growth for the next several years, downloads will continue to increase, and perhaps most of all, app store spending in non-game apps is expected to be spending for mobile games by 2024.

This is a big bet given that consumers are spending twice as much on mobile gaming these days as they are on non-gaming. However, the company believes the subscription model now being adopted by a number of mobile apps will lead to a shift in the market. By 2024, it is projected to spend $ 86 billion on non-gaming spending, compared to $ 73 billion on gaming spending. And by 2025, that gap will widen. Non-games hit $ 107 billion while mobile games hit $ 78 billion.

Credit: Sensor tower

Last year, global consumer spending on the top 100 subscription apps increased 34% year over year to give you an idea of ​​what’s going on in the market today. However, there were already signs that subscription growth was being influenced by larger apps like Netflix and Tinder, which found workarounds for in-app purchases.

What Sensor Tower cannot predict either is how the regulatory environment in the app stores will develop over the next few years. Companies like Apple and Google now require apps to bill customers for subscriptions through Google and Apple’s own payment mechanisms. However, new anti-competitive laws could be enacted that would allow publishers to market their own subscriptions on their apps, which would then redirect users to their own channels to make those purchases. Such a change would have an overwhelming impact on the App Store subscription growth trends and thus on this forecast.

Although the pandemic increased in-app spending by 30% year-over-year to a record $ 111 billion in 2020, the new forecast predicts that general in-app spending will return to previous levels over the next five years COVID will return. Gross sales in both app stores will grow at a compound annual growth rate (CAGR) of 19.5% each year, reaching $ 270 billion by 2025. Of this, $ 185 billion was spent on App Store versus $ 85 billion on Google Play.

Credit: Sensor tower

The US will grow slightly more slowly than the rest of the world market, with an annual growth rate of 17.7%, reaching $ 74 billion by 2025.

European markets will drive App Store spend growth from 2020 to 2025, led by the UK. This is not the equivalent of where the most spending is overall, but rather where growth is happening – in other words, opportunities for app makers. By 2025, 11 European countries will surpass the US $ 1 billion consumer spending milestone to collectively reach US $ 42 billion in consumer spending.

Credit: Sensor tower

Downloads will continue to increase over the next few years, reaching 230 billion by 2025. The forecast predicts that Google Play will make up the majority of that number with 187 billion downloads worldwide. In the US, App Store downloads (10.6 billion) will surpass Google Play downloads (6.3 billion) in 2025, the report said.

Credit: Sensor tower