Mobile industry sets record with $150 billion revenue in 2024

The mobile sector has entered 2025 on a high note, with Sensor Tower’s State of Mobile 2025 report highlighting a record-breaking year for app monetization. Global revenue from in-app purchases, subscriptions, and paid apps soared to $150 billion in 2024—a 13% year-over-year (YoY) growth and the strongest annual increase since 2021. The report offers a comprehensive look at how innovative strategies and emerging technologies, such as AI, are reshaping the mobile landscape while pointing to new opportunities for developers and businesses.

As smartphone adoption begins to plateau, the mobile market is showing signs of stabilization, with app downloads remaining steady at 136 billion across iOS and Google Play in 2024. While new app installations have slowed in saturated markets, consumer spending tells a different story. Despite flat download rates, global time spent on apps grew 5.8% YoY, reaching 4.2 trillion hours—equivalent to about 3.5 hours per day per user.

Revenue, however, continues to surge. Non-gaming apps led the charge with a remarkable 23% YoY growth, while mobile gaming rebounded with a 4% increase, bringing total in-app purchase (IAP) revenue to an all-time high. The United States retained its position as the largest market, generating $52 billion in IAP revenue—accounting for more than one-third of the global total—while Europe posted a standout performance with a 24% YoY revenue increase, doubling the worldwide growth rate.

The mobile gaming sector demonstrated resilience in 2024, recovering from two consecutive years of declining revenue. Gaming IAP revenue climbed 4% YoY to $81 billion, driven by improved monetization strategies and immersive gameplay experiences. While downloads dropped to their lowest level since 2019, reflecting market stabilization, consumer engagement remained robust, especially in regions like the Americas and Europe. However, growth in key Asia-Pacific markets, including Japan and China, lagged behind global trends.

AI-powered apps emerged as a major force in 2024, with in-app revenue for AI chatbot and art generator applications nearing $1.3 billion. The United States dominated the Generative AI space, accounting for 45% of global revenue, followed by the UK, Germany, and Japan. Beyond standalone AI apps, the technology is rapidly being integrated across diverse categories, including productivity, education, and lifestyle.

Leading apps such as Duolingo and Strava are pushing boundaries by incorporating advanced AI tools to enhance user experiences, signaling an era of widespread AI adoption in the mobile industry. With many apps planning to introduce new AI features in 2025, the mobile ecosystem is poised for further transformation.