In 2024, mobile users around the world poured $150 billion into in-app purchases and subscriptions, a 13 % year-over-year surge even as new app downloads held nearly flat. Sensor Tower’s State of Mobile 2025 reveals that this revenue boom was powered by a dramatic shift toward non-gaming apps, AI features, and regional monetization trends, signaling a new era for mobile strategy.
The mobile app ecosystem has entered a new chapter. According to Sensor Tower, downloads across iOS and Google Play held relatively flat at 136 billion, representing a –1 % change year-over-year. Yet, despite this plateau in volume, consumer spending climbed, reaching $150 billion in 2024, a 13 % increase over the prior year. Total time spent in apps hit 4.2 trillion hours, or roughly 3.5 hours per user per day, up 5.8 % YoY.
What underlies this decoupling, flat downloads but rising revenue, is a shift in monetization and consumption behavior. Non-game apps led the way, with revenue growth of approximately +23 % YoY, while gaming apps saw a more modest rebound of +4 % after prior declines. Within non-gaming, standout categories included film & television streaming ($11.9 billion) and social media ($11.7 billion).
A narrative thread through the data is the meteoric ascent of AI/generative AI apps. Consumer spending in AI apps surged by ~200 %, totaling about $1.1 billion. Users spent close to 7.7 billion hours in AI apps, while apps referencing “AI” were downloaded 17 billion times. This surge suggests that AI features are becoming a key driver of engagement and monetization across app verticals.
Regionally, growth was uneven but telling. Europe emerged as a growth leader, projected to reach $42 billion in app spend by 2025, with many countries projected to surpass $1 billion individually. The United States remained the largest individual market, slated to hit $74 billion in app spending by 2025, with a CAGR of ~17.7 %. In contrast, Asia, particularly China, Japan, and South Korea, exhibited slower growth in gaming IAP revenue, which in some cases declined slightly in USD terms, reflecting currency and market pressures. For app developers and mobile marketers, the report offers several critical takeaways:
- Monetize depth over scale: With download growth plateauing, maximizing retention, upsell, and lifetime value (LTV) is paramount.
- Pivot or diversify into non-gaming verticals: Categories like streaming, social, productivity, and finance now outpace game monetization in growth.
- Leverage AI-smart features: Embedding generative AI or intelligent features can catalyze engagement and justify pricing tiers or premium features.
- Tailor regional monetization and pricing: Recognize currency effects and pricing sensitivity in key markets; what works in Europe or North America may need local adaptation.
- Watch for macro/saturation effects: As time-spent growth slows in mature markets (e.g. US, Japan, China), further revenue gains may depend on creating new utility or redefining app value.
Sensor Tower’s “State of Mobile 2025” report underscores that the mobile landscape is maturing, but it is not stagnating. The balance has shifted: fewer new installs, but more revenue per existing user. Developers and marketers who adapt by deepening engagement, embracing non-gaming and AI verticals, and regionalizing strategies, stand to thrive in this new phase of the mobile economy.
