Consumer Spending on Mobile Apps Surged in 2024 Amid AI Boom
Consumer Spending on Mobile Apps Surged in 2024 Amid AI Boom
The digital economy saw a remarkable shift in 2024, as consumers worldwide are increasingly investing in mobile applications, resulting in an astonishing total of $150 billion in spending. This marked a 13% year-on-year increase and signals the continuing willingness of users to engage with mobile platforms, especially those incorporating artificial intelligence (AI).
According to the annual State of Mobile 2025 report by Sensor Tower, consumer interactions with mobile devices hit 4.2 trillion hours in 2024, reflecting a 5.8% increase from the previous year. However, there was a slight drop in app downloads, totaling 136 billion, which indicates a maturing market despite widespread use.
Growth Beyond Gaming
Notably, spending in non-gaming applications outstripped that of gaming apps for the fourth consecutive year, contributing around $14 billion to the overall expenditure in 2024, translating to a whopping 25% growth year-on-year. The leading sectors within non-gaming app spending were movie and television streaming, reaching approximately $11.9 billion, and social media, which stood at $11.7 billion.
AI-driven applications were among the fastest-growing categories, with consumers pouring nearly $1.1 billion into tools such as ChatGPT and Google Gemini. Interest in generative AI surged, leading to a staggering 200% increase in spending for these apps.
In the realm of user engagement, AI-related applications managed to attract nearly 7.7 billion hours of usage, illustrating significant consumer interest in AI capabilities. Furthermore, downloads of apps featuring AI technologies topped 17 billion, underscoring the technology's crucial role in attracting users.
Evolving Consumer Habits
Oliver Yeh, CEO and Co-founder of Sensor Tower, commented, "Applications continue to captivate consumers' attention, particularly in non-gaming categories. As users increasingly dedicate time to mobile devices, they are more inclined to make purchases directly from their smartphones." This evolution in consumer behavior has prompted app developers to adapt their monetization strategies, aiming to enhance user experiences and streamline purchasing processes.
Despite some evidence of digital fatigue in popular app categories such as streaming services, certain sectors have thrived. For example, apps that facilitate in-person customer experiences saw notable growth, like food and beverage applications, which reported an 8.5% rise in downloads and a 9.2% increase in sessions year-on-year as businesses began integrating mobile solutions into their purchasing processes.
Major Players and New Entrants
2024 welcomed several new members to the billion-dollar club, including games like Last War, Whiteout Survival, Dungeon Fighter, Brawl Stars, and the streaming app WeTV, achieving this milestone based on consumer spending. The report also pointed to ChatGPT reaching 50 million monthly active users – a record expansion that outpaces other platforms like Temu and Disney+.
In the financial sector, mobile banking applications thrived, capitalizing on the popularity of digital wallets and mobile banking, with an 8% year-on-year growth in downloads and a double-digit increase in usage time.
Conclusion and the Future of Mobile Apps
While growth remains steady in many areas, the app market faces challenges, including increased competition and changing consumer preferences. The mobile streaming market, despite rises in revenue via in-app purchases, has shown signs of user engagement decline as digital fatigue sets in. The current saturated landscape makes it difficult for newer platforms to build customer loyalty.
The State of Mobile 2025 report from Sensor Tower provides in-depth insights into the evolving market trends regionally and categorically. As we look forward, the integration of AI into applications appears to be a significant trend, potentially leading to innovative solutions that meet user demands. Sensor Tower continues to empower companies to navigate the complexities of the mobile app ecosystem, helping brands make well-informed strategic decisions.
For further insights into the performance of specific sectors and applications, check out the full report at www.sensortower.com.
Topics Consumer Technology）
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