2024: A Year of Recovery and Shifts in the App Ecosystem
In 2024, the global app economy continued to recover from the slowdown experienced in 2022. According to new data from app intelligence firm Appfigures, global consumer spending on mobile apps and games reached $127 billion across the App Store and Google Play, marking a 15.7% increase from the previous year.
App Downloads Decline: A Global Trend
However, despite the growth in consumer spending, there was another worrying sign about the overall health of the app ecosystem. Global app downloads were down by 2.3% compared to 2023, reaching nearly 110 billion. This downward trend was observed across both app stores.
The App Economy’s Shift towards Revenue Extraction
This isn’t the first time we’ve seen signs that the app ecosystem’s massive growth may be leveling out. As the app economy matures, there is a growing focus on extracting revenue from existing apps through ongoing subscriptions rather than driving new downloads or paid app sales.
Subscriptions: A Growing Share of App Revenue
Only 5% of apps worldwide offered subscriptions in 2024, but they accounted for 48% of app revenue across both app stores. This highlights the increasing importance of subscription-based models in generating revenue for developers and app stores alike.
The Top 10 Earning Apps: Dominating Consumer Spending
The top 10 earning apps globally generated 13.7% of all consumer spending, up 1.2% from 12.5% in 2023. This demonstrates the concentration of revenue among a select few apps, which are driving the majority of consumer spending.
AI and Innovation: A Growing Trend
Meanwhile, much of the innovation taking place today is in the field of Artificial Intelligence (AI). However, Apple has largely snubbed AI-related apps in its App Store Awards over the past couple of years. The 2024 and 2023 awards went to video app Kino and hiking app AllTrails, respectively.
Declining App Downloads: A Global Trend
App downloads declined globally in 2024, with a 2.3% decrease compared to 2023. This trend was observed across both app stores.
The Impact of Declining App Downloads
- The decline in app downloads may indicate that users are becoming increasingly selective about the apps they install and use.
- This shift could be driven by factors such as changes in consumer behavior, increased competition, or the growing popularity of alternative platforms like web-based applications.
- Developers and app stores must adapt to these changing trends and find new ways to engage users and drive growth.
The Rise of Subscriptions
Subscriptions have become a crucial revenue stream for developers and app stores. With only 5% of apps offering subscriptions, the potential for growth in this area is significant.
Key Takeaways
- The global app economy continued to recover in 2024, with consumer spending reaching $127 billion.
- App downloads declined globally by 2.3%, indicating a shift towards more selective user behavior.
- Subscriptions have become an increasingly important revenue stream for developers and app stores.
The Future of the App Economy
As the app economy continues to evolve, it is essential to stay informed about the latest trends, insights, and challenges shaping this industry. By understanding these factors, developers, app stores, and investors can make informed decisions to drive growth and success in this rapidly changing market.