App spending set to cross $270 billion a year by 2025

Europe is expected to lead the growth in revenue

App spending set to cross $270 billion a year by 2025

According to a market forecast from Sensor Tower, app spending could cross $270 billion annually by 2025.

That staggering number is 2.5 times more than what consumers spent on mobile app stores in 2020.

Last year, app spending reached $111 billion, representing a growth rate of 30 per cent year-on-year. Moreover, $14.8 billion was generated through European consumers alone.

It is believed that this trend will continue, with mobile storefronts expected to see a steady increase in revenue year-on-year with a compound annual growth rate (CAGR) of 19.5 per cent.

However, through 2025, the App Store is expected to generate $85 billion yearly, giving it a CAGR of 21 per cent. Meanwhile, Google Play will have a CAGR of 17 per cent as it will generate $85 billion annually.

Growing up

Europe is expected to continue its upward trajectory and will be the leader in the growth of consumer spending over the next five years.

Last year, four European countries surpassed $1 billion via app spending, with that number expected to grow to 11 in 2025. Overall, the continent will generate $2 billion.

The UK will continue to be the leader in Europe. Last year, the country was responsible for $2.9 billion in consumer spending, and that number will increase to $8.1 billion by 2025, an increase of 181 per cent.

However, the Netherlands will see the most growth as its revenue will increase from $495 million to $1.5 billion, a rise of 210 per cent over the next few years.

Unlike the rest of the world, the US will experience growth at a slower rate over the next few years, though it is expected to hit $74 billion in 2025.

Meanwhile, the US App Store and Google Play are expected to grow by 19.6 per cent and 14 per cent as they will gross $51 billion and $23 billion, respectively.


Last year, there was a 24 per cent year-on-year increase in first-time downloads as they reached 143 billion, the largest number of fresh installs since 2016.

However, it is worth noting that the impressive download figures can be attributed to the ongoing coronavirus pandemic. In 2020, many people were confined to their homes, with mobile devices proving to be a popular form of entertainment.

The first-time download rate is expected to grow, just not at the pace it did last year as the world steadily returns to normal.


In 2020, mobile games generated twice as much as non-gaming apps.

However, the tables will turn by 2024, when non-gaming applications are expected to generate $86 billion while games will gross $78 billion in 2024.

The following year, in 2025, smartphone titles will generate $78 billion, still falling behind non-gaming apps which will grow to $107 billion.

Staff Writer

Kayleigh is the Staff Writer for Besides PGbiz and PCGI she has written as a list writer for Game Rant, rambling about any and all things games related. You can also find her on Twitter talking utter nonsense.