For the First Time, Consumers Spend More Money on Apps than Games, Driven by Gen-AI

Consumers Shift Spending to Apps Boosted by Gen-AI

In a significant transformation of the digital landscape, consumers have reportedly spent more on mobile applications than on video games for the very first time. This revelation comes from Sensor Tower, a prominent player in the field of digital economy analysis, in its latest annual report detailing the state of mobile for the year 2026.

The numbers are staggering. Globally, in-app purchases (IAP) reached $167 billion in 2025, reflecting a remarkable 10% increase year-over-year. This unprecedented uptick underscores not only evolving consumer preferences but also the substantial impact of Generative AI technologies. The increased revenue from non-gaming apps surged by 21% year-over-year, highlighting a spending paradigm that saw these applications almost eclipse traditional gaming avenues. To paint a clearer picture, the amount spent on non-gaming apps in 2025 was nearly three times what it was five years prior.

Oliver Yeh, the CEO and co-founder of Sensor Tower, emphasized that this trend indicates a burgeoning opportunity outside of gaming, particularly in sectors such as Entertainment, Lifestyle, and Productivity Services. According to Yeh, the mobile market is increasingly characterized by the introduction of premium services and experiences, fueled in part by Generative AI applications which have found extensive acceptance among users and witnessed robust revenue growth. For instance, apps like ChatGPT emerged as the third-highest grossing application of 2025, trailing only behind TikTok and Google One.

As consumers continue to increase their attachment to their devices, the total time spent on apps soared to an impressive 5.3 trillion hours in 2025. Although gaming apps are still a significant contributor to both revenue and user engagement, they are now contending with categories such as social media, short-form dramas, and AI applications. Notably, social apps and AI integrations demonstrated substantial growth rates, with downloads for social applications increasing by 278% and AI-centric apps by 148%.

While the report celebrates the emerging dominance of non-gaming applications, it does not ignore the fact that gaming is undergoing a transition. The focus is shifting from sheer scale to efficiency, driven by elevated user acquisition costs. The successful players in this arena are learning to deepen monetization and enhance operational practices, complemented by high-attention advertising formats.

In the financial app sector, trends show shifting behaviors with spending and downloads. For instance, credit and lending applications saw an 18% increase in downloads year-over-year, which effectively countered declines observed in investment management and cryptocurrency niches. Similarly, other sectors like retail have begun to adapt, with leading retailers exploring the integration of AI to enhance customer experiences and streamline shopping processes. Noteworthy examples include AI-driven recommendation systems being rolled out by giants like Amazon and Walmart.

The growth in food delivery apps has also surpassed previous pandemic peaks, with a 14% year-over-year growth, primarily aided by promotions and advertising investments from major quick-service restaurant brands. Meanwhile, the sphere of sports betting apps remains vibrant, experiencing a 24% global increase in downloads as it continues to expand into new markets.

Through its extensive research, Sensor Tower illustrates the general sentiments surrounding mobile apps in 2025, suggesting a significant shift in consumer spending habits influenced by technological advancements. Whether it’s through Generative AI or an increased focus on providing more engaging application experiences, the transformation in the mobile economy is unmistakable, pointing towards a more integrated and dynamic future.

For more comprehensive insights and industry trends, visit sensortower.com where detailed analysis awaits those interested in the ebb and flow of consumer behavior in the mobile landscape.