CHART: Consumer app spending globally surged to $127 billion in 2024
TikTok was the top-grossing app globally, earning $2.5 billion, including $1.3 billion from U.S. users.
- The App Store dominated revenue, pulling in $91.6 billion compared to Google Play’s $35.7 billion.
- App downloads declined by 2.3% globally, with Google Play installs falling more sharply than iOS.
- Instagram was the most downloaded app globally, with 640 million installs, while Temu led in the U.S.
The app economy in 2024 was a mix of highs and lows. On one hand, people spent a massive $127 billion on apps through Apple’s App Store and Google Play, marking a solid 15.7% increase compared to the year before.
But here’s the kicker: nearly all of that growth came from Apple. Spending on the App Store jumped 24%, while Google Play actually slipped by 1.5%. This gap shows just how much Apple continues to dominate the money side of the app market.
But even with all that spending, fewer people were downloading apps. Global downloads dropped by 2.3% to 110 billion, signalling that the app gold rush may be settling down. iPhone users downloaded slightly fewer apps, with a 1.1% decline, and Android users saw an even bigger drop of 2.6%.
A big reason for this slowdown was Google’s crackdown on junk apps. By tightening quality standards, they slashed the number of new apps on their store by 60%. In the U.S., app downloads fell by 3.4% overall. Temu managed to grab the top spot as the most downloaded app in the country, while Instagram took the global crown with a staggering 640 million downloads.
With downloads slowing, app developers are shifting gears. Instead of focusing on getting people to download more apps, they’re finding ways to make more money from the ones people already use. Subscriptions are leading this charge. Only about 5% of apps offer subscriptions, but they made up a huge 48% of all app revenue this year. TikTok was a major player here, pulling in $2.5 billion globally, including $1.3 billion from the U.S. alone.
When it comes to revenue, Apple is still leagues ahead. The App Store brought in $91.6 billion, compared to Google Play’s $35.7 billion. The U.S. played a big role in those numbers, contributing $47.6 billion to the total. But there’s also some exciting action in emerging markets like Brazil, where spending shot up by an impressive 73% this year.
Meanwhile, AI is making waves in tech, but Apple’s App Store awards stayed focused on lifestyle and community-driven apps. Kino, a video app, and AllTrails, a hiking app, took home the honours for 2024 and 2023, respectively. It’s a reminder that while cutting-edge tech grabs headlines, people still love apps that make life easier or more fun.
The app economy is clearly entering a new phase. We’re seeing less of the wild growth in downloads that defined earlier years and more focus on keeping users hooked, boosting revenue, and exploring untapped markets. It’s a shift, but one that shows the industry is learning how to grow smarter, not just bigger.
Emmanuel Oyedeji
