Consumer spending on apps and in-app subscriptions is predicted to reach $270 billion on the App Store and Google Play by 2025.
That’s according to new research from Sensor Tower.
The figures suggest that app spend would be 2.5x that of 2020.
The increase is bolstered by the phenomenal shift to apps witnessed during the pandemic – a trend that is forecast to be sustained as it has paved the way for a greater number of consumers using their mobile devices.
Consumer spending on apps reached $111 billion last year.
Spending on the App Store is estimated to grow at 21% until 2025 to $185 billion annually while Google Play figures are lower at a growth of 17% to $85 billion.
First time downloads were higher in 2020 than they had been since 2016, rising 24%.
Consumers were spending twice as much on mobile games than non-gaming apps in 2020 on the App Store. That’s likely to change in 2024 when non-game apps will reach $86 billion in spending compared to $73 billion for games as our lives become more mobile.
While spending in the US performed strongly, the report suggests that European countries could exceed $1 billion spend in 2020 and that figure is set to triple by 2025.
The report highlights just how much the app economy has changed due to COVID-19 and that these are lasting changes.