Mobile Apps Revenue Booms as Downloads Decline in 2024

In 2024, global consumer spending on mobile apps and games reached a remarkable $127 billion across the App Store and Google Play, marking a 15.7% increase in revenue compared to the previous year, according to data from mobile analytics firm Appfigures. Despite this significant revenue growth, overall app downloads experienced a slight decline, shedding light on shifting user behaviour and market trends.

Mobile Apps Revenue Booms as Downloads Decline in 2024

Decline in App Downloads

Global app downloads dropped by 2.3% year-over-year, settling at approximately 110 billion in 2024. This decline was observed across both major app marketplaces. On iOS, app downloads accounted for 28.3 billion, reflecting a 1.1% decrease compared to 2023. Android downloads via Google Play dropped by 2.6%, amounting to 81.4 billion.

The United States also mirrored this downward trend. iOS downloads in the U.S. fell by 5.3% to 6.1 billion, while Google Play downloads dropped slightly by 0.7%, reaching 4.4 billion. In total, U.S. app downloads declined by 3.4%, amounting to roughly 10.6 billion installs for the year.

Subscription Revenue Dominates

Interestingly, subscription-based apps played a critical role in driving revenue. While only 5% of apps globally offered subscription models in 2024, these accounted for a staggering 48% of total app revenue across both platforms. This demonstrates the growing importance of recurring revenue streams in the app ecosystem.

Top Revenue Generators

The top 10 earning apps globally contributed 13.7% of all consumer spending, up from 12.5% in 2023. Among these, TikTok emerged as the global leader in app revenue, generating an estimated $2.5 billion across iOS and Android (excluding Chinese app stores). In the United States, TikTok also led the market with approximately $1.3 billion in consumer spending, reflecting its widespread appeal and monetization success.

Most-Downloaded Apps

In terms of downloads, Temu, a rising e-commerce app, dominated the U.S. market with 48 million installs in 2024. Apple confirmed Temu as the most downloaded app on the App Store in the United States, highlighting its rapid growth and popularity among consumers.

Revenue Comparison Between App Stores

The App Store continues to lead in consumer spending, contributing $91.6 billion of the total $127 billion in 2024. This figure represents a 24% year-over-year increase, underscoring Apple’s dominance in the premium app segment. Conversely, Google Play consumer spending declined by 1.5%, reaching $35.7 billion globally.

Key Takeaways

2024 highlights the growing divergence between app download trends and consumer spending. While fewer apps were downloaded globally, users spent significantly more on premium content and subscriptions. Apps like TikTok and Temu demonstrate the importance of innovative monetization and user engagement strategies in driving success. The substantial revenue generated by subscription-based apps emphasizes their value in the evolving app economy, making them a key focus for developers and app marketplaces moving forward.

This year’s data showcases the resilience of the mobile app market, where consumer spending continues to thrive despite a drop in download volumes, signalling a maturing industry prioritizing quality and monetization over quantity.

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