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Overview of Consumer Spending on Mobile Applications in 2024

In 2024, consumer expenditure on mobile applications reached an astounding $150 billion, marking a significant increase of 13% compared to the previous year. This uptick highlights a growing trend where users are increasingly engaging with their mobile devices and making purchases through apps. According to the annual report by Sensor Tower, a leading data provider focused on the digital economy, the surge in spending coincides with a 300% rise in the time users spent on artificial intelligence (AI) applications. Altogether, consumers engaged with their mobile devices for a staggering total of 4.2 trillion hours globally, reflecting a 5.8% increase year-on-year.

Non-Gaming Apps Overtake Gaming Apps

For the fourth consecutive year, spending in non-gaming applications outstripped that in gaming apps, which saw a remarkable growth of nearly $14 billion—an increase of 25% from the previous year. Streaming films and television ranked as the top categories with $11.9 billion spent, closely followed by social media apps at $11.7 billion. This shift carries implications for developers and marketers seeking to tap into this lucrative market.

AI Applications Show Substantial Growth

Particularly noteworthy was the emergence of AI applications, which have gained massive traction amidst renewed interest in generative AI technologies. Consumers funneled approximately $1.1 billion into AI-focused apps like ChatGPT and Google Gemini, representing a remarkable 200% year-over-year growth. The potential for these applications is evident, as they might soon join the top 10 for consumer spending within a year. The estimated hours spent on AI apps such as ChatGPT and Character AI approached 7.7 billion, while applications with AI-related keywords in their names garnered 17 billion downloads—a clear indication of growing consumer appetite for AI functionality.

Shifting Strategies for App Monetization

"As non-gaming apps continue to seize consumer focus, there's a noticeable shift in how these apps monetize their offerings," commented Oliver Yeh, co-founder and CEO of Sensor Tower. Modern applications are generating innovative strategies to enhance user experience and align with consumer engagement patterns, reflecting their evolving role in our daily lives.

Despite some signs indicating a possible digital fatigue, evidenced by slight declines in engagement in traditionally popular categories like streaming, other areas like food and beverage delivery apps have witnessed substantial growth. These categories recorded an 8.5% increase in downloads alongside a 9.2% rise in consumer sessions, signaling an innovative integration of apps into physical purchasing processes.

The Billion-Dollar App Club Expands

The billion-dollar app club welcomed five new members, with four mobile games and one application crossing the billion dollars mark in annual consumer spending. Games like Last War, Whiteout Survival, and Brawl Stars have joined this elite group alongside WeTV streaming service, reflecting the steadily increasing market potential of apps in various categories.

AI Adoption Accelerates

Notably, ChatGPT achieved a milestone of 50 million monthly active users, showcasing an impressive 500% growth in active user engagement within a year. This acceleration in user adoption surpasses that of other platforms like Temu and Disney+, marking a significant moment in the realm of consumer interaction with AI.

Fast-growing Financial Apps

Financial service applications maintained their upward trajectory, propelled by the increasing popularity of mobile banking and digital wallets. These applications recorded nearly 7.5 billion downloads, indicating an 8% annual growth. Apps centered on cryptocurrency, including Binance and Tonkeeper, emerged as top contenders among downloaded financial services.

Market Saturation in Streaming Applications

In contrast, mobile streaming apps experienced steady growth in downloads and in-app revenues but faced engagement declines due to growing consumer feelings of digital fatigue. Newer platforms are finding it challenging to retain user interest amid a saturated market.

Conclusion

The findings from Sensor Tower’s State of Mobile 2025 report underscore the complex dynamics at play in the mobile application marketplace. Mobile applications are clearly more integral than ever to consumer spending, equipped with AI and innovative functionalities that resonate with users. As trends continue to evolve, staying attuned to these developments will be crucial for businesses looking to maximize their impact in the mobile landscape. To explore the complete report and delve deeper into specific performance metrics by region and category, click here.

For more information about Sensor Tower, visit their official website. Founded in 2013, Sensor Tower has positioned itself as the premier provider of mobile app data, helping marketers and developers navigate the complexities of mobile user engagement and acquisition.