A new market forecast will reach $ 270 billion by 2025, including app downloads, in-app purchases and subscriptions. According to Sensor Tower data, in-app spending will return to pre-epidemic levels of steady growth over the next few years, downloads will continue to rise, and, perhaps most notable, it predicts App Store spending in non-game apps Is doing overtake of mobile games by 2024.
This is a big bet, given that today, consumers spend twice as much on mobile games than on non-games. However, the firm believes that the subscription model now being adopted by many mobile apps will cause market changes. By 2024, it expects non-game spending to reach $ 86 billion, compared to $ 73 billion in game spending. And by 2025, this gap will widen further, with non-games reaching $ 107 billion while mobile games reaching $ 78 billion.
Last year, the top 100 subscription apps saw a 34% increase in global consumer spending, growing year-over-year to give you an idea of the current state of the market. But there were already some indications that subscription growth was being affected by big apps like Netflix and Tinder, which found a workaround for in-app purchases.
Sensor Tower also cannot predict how the regulatory environment for the next several years will run in app stores. Today, companies such as Apple and Google require apps to subscribe to customers through Google and Apple’s own payment mechanisms. But new anti-competition laws could be created that would allow publishers to market their subscriptions inside their app, which would then redirect users to their own channels to redirect those purchases. Such a change would have a huge impact on the subscription growth trend of the App Store and hence this forecast.
Although the epidemic has increased in-app by a record $ 111 billion by 2020, by 30% annually, the new forecast would predict spending in general at pre-COVID levels over the next five years. It states that gross revenue at both app stores will reach $ 270 billion by 2025, with a 1925% compound annual growth rate (CAGR). At that figure, the App Store would cost $ 185 billion, $ 85 billion on Google Play.
The US will be slightly slower than the rest of the global market, with a CAGR of 17.7% reaching $ 74 billion by 2025.
European markets will lead to an increase in App Store spending by 2020, led by the UK. It is not about what markets see the most in total spending, but rather about where growth is taking place – in other words, opportunities for app makers. By 2025, 11 European countries will pass $ 1 billion in consumer spending, reaching $ 42 billion in consumer spending.
Downloads, meanwhile, will continue to reach 230 billion by 2025 over the next several years, the forecast predicts, with 187 billion global downloads, accounting for the majority of that figure to Google Play. However, App Store downloads will top Google Play (6.3B) in the US in 2025 (10.6B), the report concludes.