App Downloads Decline in 2024, Spending Reaches $127B

The State of the Global App Economy in 2024

The worldwide app market demonstrated a resurgence in 2024, following a period of deceleration experienced in 2022, specifically regarding consumer expenditure. Total global consumer spending on mobile applications and games amounted to $127 billion across both the App Store and Google Play, representing a 15.7% increase year-over-year.

This growth, however, was primarily fueled by the Apple App Store, with spending on Google Play actually experiencing a decline, as indicated by recent data from the app analytics company, Appfigures.

App Download Trends

Despite the rise in spending, a concerning pattern emerged regarding the broader health of the app environment. Globally, app downloads decreased by 2.3% in comparison to 2023, totaling almost 110 billion downloads.

This downward trajectory was observed across both major app distribution platforms, according to the reported data.

A Shift in Revenue Models

Previous indications have suggested that the substantial expansion of the app ecosystem may be beginning to stabilize. The current emphasis within the maturing app economy is on maximizing revenue from existing user bases through recurring subscriptions.

Rather than focusing on acquiring new users or promoting paid app downloads, developers are prioritizing ongoing monetization strategies.

Subscription Dominance and Top Performers

Notably, only 5% of applications globally offered subscription options in the past year, yet these apps generated 48% of the total revenue across both app stores, as discovered by Appfigures.

Furthermore, the top 10 highest-grossing apps worldwide accounted for 13.7% of all consumer spending, an increase from 12.5% in 2023.

The Role of AI and App of the Year Choices

Currently, a significant portion of innovation is occurring within the realm of Artificial Intelligence (AI). However, Apple has largely overlooked this trend when selecting its App of the Year awards in recent years.

In 2024 and 2023, the awards were presented to video editing app Kino and hiking app AllTrails, respectively.

Global App Download Trends in 2024

A decrease in app downloads was observed on a worldwide scale throughout 2024, impacting both major app distribution platforms.

Download Statistics Across Platforms

In 2024, a total of 110 billion app downloads were recorded. iOS accounted for 28.3 billion installations, representing a 1.1% decrease compared to the previous year. Google Play saw 81.4 billion Android app downloads, which was a 2.6% decline.

Previously, app download numbers had remained relatively stable, as indicated by earlier reports.

Factors Contributing to the Decline

The reduction in downloads is partially attributable to changes in app store management practices implemented by Apple and Google during 2024.

Google Play's Crackdown on Low-Quality Apps

Google significantly reduced the number of new apps released on Google Play by 60% through stricter enforcement against spam and low-quality applications. This action was likely prompted by enhanced developer requirements concerning app testing and review processes.

U.S. Download Trends

The United States contributed to the overall downward trend, experiencing a 5.3% decline in iOS downloads to 6.1 billion and a 0.7% decrease in Google Play downloads to 4.4 billion. Consequently, total U.S. app downloads fell by 3.4%, reaching approximately 10.6 billion for the year.

Most Popular Apps

Instagram emerged as the most downloaded app globally in 2024, with nearly 640 million installs. It also held the position of the most searched-for app within the U.S.

Alongside Instagram, other prominent social media applications like Snapchat, Facebook, and TikTok garnered more searches than X throughout the year.

Top Downloaded App in the U.S.

Temu led in U.S. downloads, achieving 48 million installs, according to Appfigures. Apple has also confirmed Temu’s status as the most-downloaded app on its U.S. App Store.

Regional Growth

Mexico experienced the most substantial increase in app downloads in 2024, with 225 million more installs than in 2023.

The App Store Maintains Strong Revenue Performance

Despite shifts in download numbers, the app ecosystem continues to generate substantial revenue for both developers and app distribution platforms, particularly within the Apple App Store.

Global Consumer Spending in 2024

Total global consumer expenditure within the app market reached $127 billion in 2024. A significant $91.6 billion of this total was attributed to the App Store, representing a 24% increase compared to the previous year.

Conversely, consumer spending on Google Play experienced a slight decrease of 1.5% year-over-year, totaling $35.7 billion worldwide.

U.S. Market Contribution

The United States remains a key driver of app revenue, contributing $47.6 billion to the overall global spending, a rise of 11% from the prior year.

Within the U.S., the Apple App Store captured $34.4 billion, demonstrating an 18.4% growth. Google Play’s revenue in the U.S., however, saw a 4.7% decline, reaching $13.2 billion in 2024.

Top Performing Apps

TikTok emerged as the leading app globally based on consumer spending, amassing an estimated $2.5 billion across both iOS and Android platforms, excluding revenue from Chinese app stores.

In the U.S. market specifically, TikTok also held the top position, generating nearly $1.3 billion in consumer spending.

Regional Growth

Brazil experienced the most rapid growth in consumer spending, exhibiting a remarkable 73% increase year-over-year.

Key Takeaways

• The App Store continues to be a dominant force in app revenue generation.
• Global consumer spending on apps remains robust, despite fluctuations in download trends.
• TikTok is a leading app in terms of consumer expenditure, both globally and within the U.S.
• Emerging markets, such as Brazil, are demonstrating significant growth potential.