The 2024 Global App Economy: App Store Soars While Google Play Stumbles

The 2024 Global App Economy: App Store Soars While Google Play StumblesThe 2024 global app economy presents a complex picture. While total consumer spending on mobile apps and games across Apple's App Store and Google Play reached $127 billion, a 15

The 2024 Global App Economy: App Store Soars While Google Play Stumbles

The 2024 global app economy presents a complex picture. While total consumer spending on mobile apps and games across Apple's App Store and Google Play reached $127 billion, a 15.7% year-on-year increase according to app intelligence firm Appfigures, underlying issues remain. This significant growth was largely driven by the App Store, which saw a 24% year-on-year revenue increase to $91.6 billion, while Google Play experienced a 1.5% year-on-year decline, reaching only $35.7 billion. This disparity highlights a significant divergence in the two app stores' trajectories in 2024.

The App Store's strong growth was primarily fueled by the US market. US App Store spending hit $34.4 billion, an 18.4% year-on-year increase, while Google Play revenue in the US fell by 4.7% to $13.2 billion. This data points to the US market as a key driver of App Store growth, contrasting with Google Play's relatively weak performance in the region. Notably, the top 10 highest-grossing apps accounted for 13.7% of all consumer spending, up from 12.5% in 2023, indicating a further increase in market concentration among leading apps. TikTok, in particular, performed exceptionally well, estimating $2.5 billion in revenue across iOS and Android (excluding Chinese app stores), and nearly $1.3 billion in the US alone, making it the top-grossing app in the country.

However, despite the continued recovery in consumer spending, the overall health of the app ecosystem is concerning. Global app downloads decreased by 2.3% year-on-year in 2024, reaching approximately 110 billion. This decline was observed on both the App Store and Google Play. Specifically, iOS downloads were 28.3 billion, down 1.1%, while Android downloads on Google Play fell by 2.6% to 81.4 billion. The decline in the US market was particularly pronounced, with US iOS downloads decreasing by 5.3% to 6.1 billion and US Google Play downloads falling by 0.7% to 4.4 billion, resulting in an overall 3.4% year-on-year decrease in US app downloads to approximately 10.6 billion.

The reasons for the download decline are multifaceted and closely tied to how Apple and Google managed their app stores in 2024. Google, in particular, cracked down on spam apps and other low-quality apps over the past year, resulting in a significant 60% reduction in new app submissions on Google Play. This is likely due to increased developer requirements for app testing and review, leading to a decrease in the number of apps and consequently impacting overall downloads.

Despite the download decline, subscription revenue continued to grow. Data shows that while only 5% of apps globally offered subscriptions last year, they contributed 48% of the revenue across both app stores. This highlights the subscription model as a crucial avenue for app monetization and demonstrates increased user willingness to pay.

Geographically, Brazil emerged as the fastest-growing market for consumer spending, with a 73% year-on-year increase, indicating the potential of emerging markets. The US market, despite declining downloads, maintained growth in consumer spending, potentially reflecting higher user willingness to pay and stronger purchasing power.

In terms of app downloads, Instagram emerged as the most downloaded app in 2024 with nearly 640 million installs, also ranking as the most searched app in the US. Other top social apps, including Snapchat, Facebook, and TikTok, also surpassed X (formerly Twitter) in search volume, reflecting the continued influence of social media apps on user engagement. Notably, Temu became the highest-downloaded app in the US with 48 million installs, demonstrating the strong market competitiveness of emerging apps.

In conclusion, the 2024 global app economy shows simultaneous growth and decline. The App Store, leveraging its strong ecosystem and user stickiness, achieved significant growth, while Google Play faced challenges with declining downloads and slowing revenue growth. Download declines are closely linked to app store management strategies, app quality, and market competition. The rise of subscription models and growth in emerging markets inject new vitality into the app economy, yet the overall health of the app ecosystem requires continuous monitoring. Future app developers need to prioritize app quality, user experience, and innovative models to thrive in this competitive landscape. The data also reveals a continuing increase in market concentration among top apps, highlighting a growing "head effect" that will shape the future app market landscape and pose significant challenges to smaller developers. App store operators like Apple and Google must strike a balance between stringent regulation and developer support to foster a healthy app ecosystem. Furthermore, national app economy regulations and evolving user consumption habits will profoundly influence future trends. Accurate prediction and assessment of the global app economy's future trajectory requires ongoing consideration of these multifaceted factors.