Consumer Spending in Apps Surpasses Gaming for the First Time, Thanks to Gen-AI

In an unprecedented shift in consumer spending patterns, data from Sensor Tower's annual State of Mobile report for 2026 reveals that 2025 marked the first time users globally invested more in non-gaming apps than in gaming apps. This significant milestone is attributed to the flourishing landscape of Generative AI services, which have rapidly gained traction in mobile applications.

In 2025, the global in-app purchase (IAP) revenue reached an astounding $167 billion, reflecting a 10% increase compared to the previous year. Notably, the revenue generated from non-game applications soared by 21% year-over-year, amounting to nearly threefold the expenditure just five years ago. This shift emphasizes the changing behavior of mobile users who are increasingly finding value in diverse app categories that extend beyond traditional gaming experiences.

Oliver Yeh, the CEO and Co-founder of Sensor Tower, highlighted how the growth of mobile apps outside the gaming sector has defined this new era. "Over the last few years, we've seen a surge in revenue for applications focused on Entertainment, Lifestyle, and Productivity Services, which are delivering innovative premium experiences to consumers. The explosion of Generative AI apps exemplifies this growth, as they witnessed significant adoption and revenue generation, with ChatGPT standing as the third-highest grossing app in 2025, following TikTok and Google One."

The report further indicates that global consumers are spending more time on apps than ever, with a staggering 5.3 trillion hours logged in 2025. While gaming still constitutes a large segment of time spent and revenue, competition is intensifying from categories such as social media and short-form video applications, including AI-driven platforms. In particular, social and drama apps reported exceptional growth rates of 278% and 148% year-over-year, illustrating a substantial shift in user preferences.

Despite the standout performance from non-gaming apps, gaming apps continue to undergo a transformation. They are currently navigating a landscape focused on efficiency rather than mere scale. With user acquisition costs on the rise, successful gaming apps are employing strategies aimed at deeper monetization and the discipline of live operations, leveraging high-engagement advertising formats to sustain their growth trajectory.

Additional insights from the report suggest notable trends emerging within the finance app sector. Users gravitated towards Credit and Lending applications, which experienced an 18% uptick in downloads year-over-year, compensating for a notable decline seen in Investment and Cryptocurrency applications.

The retail app landscape has also been influenced by evolving trends, particularly due to the effects of tariffs and the integration of AI technologies. The report noted a downturn in downloads and time spent across retail applications, driven by slower expansions from major global players. Retailers are increasingly exploring how AI can enhance the shopping experience, as evidenced by initiatives such as Amazon's AI shopping assistant, Rufus.

Food delivery apps exhibited remarkable growth, surpassing their pandemic peaks with a 14% year-over-year increase, while sports betting apps captured attention on a global scale. In the US, user acquisition rates remained stable amidst rising engagement, while the download numbers for sports betting applications rose sharply by 24% year-over-year, buoyed by their expansion into new markets like Brazil. Meanwhile, fantasy sports applications have further fueled growth trends in larger regions like India.

In conclusion, the findings from Sensor Tower illuminate a pivotal moment in the mobile app ecosystem, highlighting a decisive shift in consumer spending patterns driven by the advent of Generative AI and changing user behaviors. As mobile applications evolve, these trends suggest a dynamic future where non-gaming categories play an increasingly dominant role in consumer spending and app utilization.