In contrast to the rise in spending, global app downloads fell by 2.3% year-over-year, totaling nearly 110 billion. This decrease affected both iOS and Android platforms, with iOS downloads dropping by 1.1% to 28.3 billion and Android downloads falling by 2.6% to 81.4 billion. This marks another indication of the maturing app market, where growth is increasingly focused on maximizing revenue from existing users through subscriptions rather than driving new downloads.
Subscriptions have become a major revenue driver, even though only 5% of apps worldwide offer them. In 2024, subscription-based apps accounted for 48% of all app revenue across both platforms. Notably, the top 10 highest-earning apps contributed 13.7% of total consumer spending, up from 12.5% the previous year.
Meanwhile, innovation in artificial intelligence (AI) continues to reshape the industry, though it hasn’t been reflected in recent App of the Year picks, such as video app Kino in 2024 and hiking app AllTrails in 2023.
The decline in downloads can also be attributed to stricter app store management policies. Google Play, for instance, reduced spam and low-quality app releases, leading to a 60% drop in new app launches. This effort likely stemmed from more stringent developer requirements around app testing and reviews.
Regionally, the U.S. saw a 3.4% decline in app downloads, totaling approximately 10.6 billion, with iOS downloads falling 5.3% and Google Play downloads decreasing by 0.7%. However, Instagram was the most downloaded app globally, with nearly 640 million installs, while Temu topped the charts in the U.S. with 48 million downloads.
Despite the dip in downloads, consumer spending remains robust. Of the $127 billion spent globally, $91.6 billion came from the App Store, marking a 24% year-over-year increase. In contrast, Google Play spending declined slightly to $35.7 billion.
TikTok emerged as the highest-grossing app globally, generating $2.5 billion in consumer spending, with $1.3 billion coming from the U.S. Brazil saw the fastest growth in consumer spending, up 73% year-over-year, underscoring the enduring profitability of the app economy.
