Changes in the app market: Downloads decrease, profits increase 1.

Changes in the app market: downloads decline, revenue rises

1. App downloads in 2024 decreased by 2.3% and remained at 110 billion. However, users spend $127 billion on apps. This is a 15.7% increase compared to the previous year, and this growth is especially driven by the Apple App Store.

2. Although app downloads decreased for both iOS (-1.1%) and Android (-2.6%), the launch of new apps on Google Play decreased by 60% due to Google's crackdown on spam and low-quality apps.

3. Only 5% of apps worldwide offered subscription services, but they accounted for 48% of all app sales. The top 10 apps account for 13.7% of total consumer spending, reinforcing the winner-takes-all structure.

“The app ecosystem is maturing and is shifting to monetizing existing apps rather than downloading new apps.”

4. The app with the most consumer spending in 2024 is TikTok, approximately $2.5 billion worldwide. The most downloaded app in the world is Instagram, with approximately 640 million downloads. The most downloaded app in the US is Temu (48 million).

5. Notable areas

• Mexico: Recorded the largest growth with 225 million downloads.
• Brazil: Consumer spending up 73%, fastest growing market.

“To break through the growth cap of the app market, paying attention to these emerging markets is essential.”

6. Implications and future strategies

• Subscription model optimization: The key is to increase subscription conversion and retention rates through user-friendly pricing and high-quality content.
• Increase user participation: Rather than simply increasing downloads, lifetime value (LTV) should be increased by maximizing in-app utilization and user satisfaction.
• Utilization of AI technology: Provide differentiated experiences through personalized recommendations, smart UI/UX, etc.
• Targeting emerging markets: Specialized marketing for each region such as Mexico and Brazil and discovery of new business models are required.
• Ease the monopoly of top apps: Platform improvements and promotional opportunities must be expanded so that small and medium-sized developers can compete.

“Downloads alone can no longer guarantee growth. User engagement and maximizing subscription revenue are key strategies going forward.”