#USA #San Francisco #AI Chatbots #Mobile Apps #Sensor Tower

Consumer Spending on Apps Surged in 2024 Driven by AI and Innovative Features

The insights from Sensor Tower's latest annual report highlight a remarkable shift in consumer behavior within the app market. In 2024, global consumer spending on mobile apps soared to an impressive $150 billion, reflecting a 13% year-over-year increase. This surge in spending is particularly pronounced in non-gaming apps, which now exceed expenditures for gaming apps for the fourth consecutive year.

Growth in App Usage and Consumer Behavior

The report revealed that user engagement with mobile devices continues to climb, with individuals spending a staggering 4.2 trillion hours on apps, marking a 5.8% rise from the previous year. Interestingly, while the time spent on apps has increased, the number of app downloads showed a slight decline, coming in at 136 billion, which is a 1% decrease from 2023.

Among the categories driving this growth are streaming services and social media, where combined spending reached $23.6 billion. Notably, film and TV streaming services topped the list with $11.9 billion, followed closely by social media applications that garnered $11.7 billion from consumers.

However, the standout performers in 2024 were undeniably AI chatbots. The rising interest in generative AI technologies propelled consumer spending on apps like ChatGPT, Google Gemini, and Doubao to nearly $1.1 billion, representing a stunning 200% increase from the previous year. The time users dedicated to these applications amounted to about 7.7 billion hours, showcasing the compelling demand for AI features in apps.

Non-Gaming Apps Take Center Stage

The trend of spending significantly skewed towards non-gaming applications indicates a broader consumer interest beyond entertainment. The report noted that non-gaming app spend increased by approximately $14 billion, contributing to 25% growth year over year. This major shift underscores a potential recalibration in the app market as consumers gravitate increasingly towards productivity, social connection, and innovative technology.

App developers have noticed this trend and adapted their monetization strategies accordingly to leverage this heightened interest. By introducing unique features and improving digital experiences, developers are ensuring that consumers remain engaged and willing to make in-app purchases.

Regional Highlights and Emerging Trends

Examining the specifics, Germany ranked within the top five countries regarding consumer spending on apps. Users in Germany spent nearly $405 million on social media and messaging apps in 2024, a robust 49% increase over 2023, with social media apps becoming the most popular category. Furthermore, German consumers recorded significant overall app usage, exceeding 37 billion hours, showcasing their strong engagement with these platforms.

While encouraging, the data also hints at a potential digital fatigue among users in some sectors like streaming. The report showed that engagement levels in certain popular segments have begun to drop slightly compared to previous peaks.

The Road Ahead

Looking forward, Sensor Tower anticipates that more developers will embrace AI within their products, striving to introduce innovative integrations that enhance user experience. Amidst the backdrop of rapid growth and shifting consumer interests, companies that can adapt and respond to the digital landscape dynamics will likely thrive.

In summary, the 2025 State of Mobile Report reveals pivotal trends that signify the growing impact of AI technology on consumer behavior and app engagement. With consumers more willing to invest financially in applications, especially those featuring innovative technologies, the mobile app industry is poised for transformative growth in the coming years. For comprehensive insights across various app categories and regional markets, Sensor Tower's interactive report is available for free access online.