Mobile App Market Growth, Size, and Share [2025 Report]

The mobile app market is booming and showing no signs of slowing down.

In 2025, apps are deeply woven into everyday life. People use them to communicate, shop, work, stay entertained, and even manage their health. With over 218 billion downloads last year and global revenue expected to reach $585 billion, the mobile app industry has become one of the most important parts of the digital economy (Data.ai, 2025).

But this isn’t an easy space to compete in.

New apps launch every day. Monetization strategies are constantly evolving. And the gap between top-performing apps and the rest is wider than ever.

This report breaks down where the market stands right now and where it’s going.

We cover everything from growth and platform share to monetization, advertising trends, and the most successful apps of 2025. Whether you’re an app developer, publisher, investor, or just someone working in the mobile space, you’ll find the data and insights you need to keep up and stay ahead.

Global Market Size and Growth Rates (2024–2025)

The mobile app industry isn’t slowing down. In 2024, global annual revenue from mobile apps reached $530–540 billion, and it’s expected to climb to around $585 billion in 2025 (Statista, 2025). That’s a year-over-year growth rate of 8–12%, which means the market is adding tens of billions in revenue every year (Statista, 2025).

A Massive Global User Base

This growth is powered by just how many people rely on mobile. Over 5.5 billion people now use the internet, and 96% of them access it through mobile devices (Statista, 2025). And it’s not just about being connected – people are spending more time in apps than ever.

In fact, users around the world spent a staggering 4.2 trillion hours in mobile apps in 2024 (SensorTower, 2025). That kind of engagement explains why the market keeps expanding.

Long-Term Growth Outlook

Since 2017, the mobile app market has more than tripled in size (SensorTower, 2025). Looking ahead, it’s expected to hit $780+ billion by 2029, growing at a 7–8% compound annual growth rate (Statista, 2025). That long-term growth includes both consumer spending (on app purchases, in-app purchases, and subscriptions) and mobile advertising revenue.

Advertising Is a Big Part of the Boom

One major reason for the continued growth? Mobile ads. As people spend more time on their phones, businesses are putting more of their marketing dollars into mobile – fueling a surge in ad spend. (More on this in the advertising section.)

Bottom line: This is a fast-growing and highly engaged market that’s becoming a bigger piece of the global digital economy each year.

Platform Market Share: iOS vs. Android

The global mobile app market is split between two giants: Google’s Android and Apple’s iOS.

Android holds about 70% of global smartphone users, mainly due to its wide availability across devices and price points (SensorTower, 2025). In contrast, iOS accounts for roughly 30% of users (SensorTower, 2025). So if you’re looking for scale, Android offers the largest reach by far.

iOS Leads in Revenue

Despite having fewer users, iOS generates nearly two-thirds of all app revenue worldwide (SensorTower, 2025). That gap comes down to user behavior: iOS users consistently spend more on apps, subscriptions, and in-app purchases than Android users.

This trend isn’t new. Apple’s dominance in higher-income markets, combined with a user base more willing to pay for premium experiences, means it continues to outperform Android in terms of revenue.

Downloads vs. Monetization

Google Play often delivers 2x the download volume of iOS in many regions. But monetization per user is typically lower.

It’s also important to consider third-party Android stores – especially in China, where Google Play isn’t available. There, Android’s market share in both users and revenue is even larger. Still, iOS captures a significant share of app spending in China, despite its smaller footprint.

Choosing a Platform Strategy

The rough global split is 70/30 for users (Android/iOS) but closer to 65/35 for revenue (iOS/Android). For developers and publishers, this highlights a key decision: Android gives you reach, but iOS often gives you higher return per user.

That’s why many app businesses choose to focus on iOS for monetization, while using Android to build scale. Both platforms matter – but how you prioritize them depends on your goals.

Top Apps of 2025: Downloads and Revenue Leaders

Below are the most downloaded and top-grossing apps of 2025 so far, based on data from AppMagic.

Most Downloaded Apps (2025 YTD)

1. ChatGPT – 600+ million downloads
2. TikTok – 510+ million
3. Instagram – 355+ million
4. Temu – 314+ million
5. WhatsApp Messenger – 312+ million
6. Facebook – 310+ million
7. Block Blast! – 246+ million
8. CapCut – 242+ million
9. Telegram – 209+ million
10. Snapchat – 196+ million
11. Threads – 189+ million
12. Roblox – 181+ million
13. WhatsApp Business – 167+ million
14. Spotify – 145+ million
15. DeepSeek – AI Assistant – 138+ million

Highest Grossing Apps (2025 YTD)

1. TikTok – $2.47 billion
2. Google One – $1.45 billion
3. Honor of Kings – $1.23 billion
4. YouTube – $1.12 billion
5. Last War: Survival – $1.05 billion
6. Whiteout Survival – $971 million
7. Royal Match – $943 million
8. ChatGPT – $921 million
9. PUBG Mobile – $848 million
10. MONOPOLY GO! – $794 million
11. Disney+ – $741 million
12. Candy Crush Saga – $718 million
13. Tinder – $702 million
14. Pokémon TCG Pocket – $537 million
15. HBO Max – $532 million

The top charts reflect a mix of AI tools, short-form video, mobile gaming, and streaming services.

ChatGPT leads in downloads with over 600 million installs, while TikTok remains the top earner with nearly $2.5 billion in revenue. Newcomers like Temu, Whiteout Survival, and MONOPOLY GO! also made major moves in 2025.

These rankings show just how quickly the mobile app space can shift – balancing well-established giants with fast-rising challengers. (AppMagic, 2025)

Top Mobile App Categories and Most Profitable Types

Gaming and Social Apps Dominate the Market

When it comes to revenue, two app categories stand far above the rest: gaming and social networking.

Mobile games brought in $196.1 billion in 2024, accounting for nearly 38% of total app revenue (Newzoo, 2025). Close behind were social networking apps, including social media and messaging platforms, which generated about $153.4 billion – roughly 30% of global app revenue (Newzoo, 2025).

Together, these two categories make up more than two-thirds of all mobile app revenue. That’s not surprising – games monetize heavily through in-app purchases and ads, while platforms like Facebook, TikTok, and Instagram rake in ad revenue and some user spend.

Other Categories Are Growing, Too

Beyond games and social, the revenue share starts to drop off:

• Entertainment apps (video, music, etc.) brought in $39.2 billion in 2024 (~7%)
• Shopping apps generated around $33.4 billion (~6%)
• The rest – utilities, health & fitness, productivity, etc. – make up the remainder.

Even though they represent a smaller slice of the pie, most of these categories are still seeing solid growth, typically 10%+ year-over-year, in line with the broader market trend (Newzoo, 2025).

Some standouts in 2024 included:

• News & Magazine apps, which grew +16.6% YoY
• Travel apps, up +16.1% YoY, signaling a strong post-pandemic rebound

In contrast, social networking apps saw slower growth at 7.3% YoY, slightly below average, possibly due to user saturation or a shift toward more private or niche platforms.

Who Earns the Most Per User?

When it comes to profitability, total revenue doesn’t tell the whole story. It’s also important to look at revenue per user, specifically, revenue per download.

The winner? Shopping apps, which average about $24 in revenue per download. That’s far higher than any other category. These apps thrive because users often make multiple high-value transactions – think Amazon, Shopee, or similar platforms.

Social networking apps and News & Magazine apps also score high on revenue per user, thanks to strong monetization models like subscriptions and ads.

In contrast, gaming apps average just $1.30 per download, despite leading the market in total revenue (Newzoo, 2025). Games rely on massive scale. Most users play for free, and only a small percentage spend money or generate ad revenue.

Categories like navigation, lifestyle, and weather tend to have low revenue per user as well, making them tougher to monetize at scale.

Two Different Strategies

These numbers reveal two very different strategies:

• High-value apps like shopping platforms can earn big from a relatively small, engaged user base.
• Mass-market apps like games need massive download volume to generate strong returns.

Understanding your app’s revenue potential per user is key to choosing the right growth and monetization strategy.

Global Mobile App Download Trends

Global demand for apps is still growing fast. In 2024, total downloads hit approximately 218 billion, up 7% year-over-year. This includes downloads from iOS, Google Play, and third-party Android stores worldwide (Sensor Tower, 2025).

The rise is fueled by two key drivers: more smartphone adoption (especially in developing countries) and growing user engagement. Apps are being downloaded for everything – communication, shopping, gaming, productivity, and beyond.

Looking ahead, downloads are expected to rise even further in 2025, as more of the world comes online via mobile.

Free Apps Still Rule

Free apps dominate the market – and it’s not even close.

Over 97% of all mobile apps are free to download, and these free apps account for about 98% of total app revenue, thanks to in-app purchases and advertising (Sensor Tower, 2025).

Very few people are willing to pay upfront anymore. That’s why the industry has largely shifted to monetizing users after download through ads, subscriptions, and IAPs. The days of the paid-only app model are mostly over.

Emerging Markets Are Driving Growth

In terms of geography, most of the growth in downloads is happening outside of traditional powerhouses like the U.S. and Europe.

• India is now the #1 country for app downloads, having recently overtaken the United States (Sensor Tower, 2025).
• Brazil is currently #3, and on pace to surpass the U.S. by 2027, thanks to rapid mobile adoption (Sensor Tower, 2025).
• Other fast-growing markets include Indonesia, Mexico, and Turkey.

The common thread? These regions are welcoming millions of new smartphone users each year. That explosion in first-time mobile access is driving a surge in app installs.

Meanwhile, mature markets like North America and Western Europe are slowing down. Most people in these regions already have smartphones and a full library of apps, so new downloads are growing at a much more modest pace.

More Installs, But Not Always More Usage

Downloads are only half the story. Retention and long-term usage are just as important – and far more challenging.

Many users download dozens of apps, but only stick with a handful. That’s why engagement and re-engagement strategies are so critical to long-term success.

Still, the growth in downloads is a clear signal of a healthy and expanding app ecosystem. For developers, emerging markets like India, Brazil, and Southeast Asia represent a major opportunity to acquire users, especially if your monetization model can support lower per-user spend and focus on scale.

Monetization Insights

Ads Drive the Majority of App Revenue

Despite most mobile apps being free to download, they still make serious money, and advertising is the biggest reason why.

In 2024, in-app advertising generated over $340 billion, making up about 65% of total mobile app revenue (Statista, 2025). This includes everything from banners and interstitials to app-install campaigns paid by advertisers.

That share has been rising for years. Back in 2017, in-app purchases (IAPs) actually brought in more than ads, but the tide has turned. With free apps reaching massive audiences, running ads has become incredibly profitable, especially when user data allows for precise targeting.

In-App Purchases and Subscriptions

The second biggest revenue stream is in-app purchases, which account for about 33% of total revenue (Statista, 2025). This includes spending on virtual goods, unlocking content, and – importantly – subscriptions.

In fact, subscriptions alone generated around $45.6 billion in 2023, and that figure grew even further in 2024. Many of the top-grossing non-game apps – think Netflix, YouTube Premium, Tinder, Duolingo – run on recurring subscription models.

A few more insights:

• Most of the top 100 non-gaming apps rely on subscription revenue
• The U.S. accounts for over half of global app subscription spend

• About 35% of apps now mix subscriptions with other purchase types, like consumables or one-time unlocks

This hybrid approach – subscriptions, IAP bundles, and ads – has become standard because it captures more value from different types of users.

Paid Apps Have Nearly Disappeared

Once a common model, paid apps now make up only about 1% of global app revenue (Statista, 2025). In 2024, pay-to-download apps earned just $6 billion worldwide.

Why the drop? Simple: most users prefer to try before they pay. The free-to-download model, with monetization happening after install, now dominates the industry.

For developers, that means the best monetization strategies happen inside the app, not at the download screen.

Consumer Spend Is Still Massive

Even though ads lead the revenue race, in-app spending still represents a huge opportunity.

According to Sensor Tower, global consumer spend on in-app purchases across App Store and Google Play hit $150 billion in 2024 – a new milestone.

• Mobile games accounted for $81 billion of that total, or about 54%
• The rest came from non-game apps like streaming, productivity, and utility tools, mostly via subscriptions

This proves that while ads drive top-line numbers, in-app spending – especially in games and subscriptions – is still a huge and growing market.

At Udonis, we’ve seen how monetization directly fuels growth. Apps with strong ad strategies or well-designed IAP funnels are the ones reinvesting the most in user acquisition.

What works best? In our experience, combining ad revenue with in-app purchases, like using rewarded ads in games, unlocks the highest lifetime value per user. That, in turn, allows for scalable and profitable UA campaigns.

Mobile Advertising Insights (eCPMs, Ad Formats, and ROI)

Mobile advertising continues to be one of the biggest growth drivers in the app economy. In 2024, global mobile ad spend reached $402 billion, up from $362 billion in 2023 (SensorTower, 2025).

By the end of 2025, mobile ad spend is projected to hit around $447 billion, making up 56% of all global digital ad spending (SensorTower, 2025). That means more than half of every digital ad dollar now goes to mobile – a clear sign of where attention lives.

In-App Ads Dominate

Within mobile advertising, in-app ads account for over 82% of total spend, while mobile web ads make up the rest (SensorTower, 2025). That’s no surprise, considering how much more time people spend in apps than in browsers.

For developers, this is a major opportunity: monetize user time inside the app through formats that don’t disrupt the experience (and sometimes enhance it).

What eCPM Data Tells Us

From a publisher’s point of view, eCPM (effective cost per 1,000 impressions) is the key monetization metric.

Here’s what we saw in 2024:

• In the U.S., eCPMs peaked around $10–$11 for certain formats
• In Japan, rates ranged from $3–$4 for app open ads and went up to $10+ for interstitials

These are strong numbers, reflecting high advertiser demand in mature markets.

Emerging Markets Are Catching Up

While eCPMs in emerging markets are lower, they’re rising fast.

In late 2024:

• Vietnam doubled certain eCPMs, hitting $2+ by Q4
• Brazil and Mexico also saw significant gains

This signals that advertiser interest in these fast-growing regions is picking up. For apps gaining users in Southeast Asia or Latin America, monetization potential is getting stronger.

Format Matters: What Performs Best

Not all ad formats are created equal. Here’s how they stack up:

• Interstitial ads (full-screen at natural breaks) = consistently top eCPMs
• Playable ads = high engagement and strong returns
• Rewarded video ads = user-friendly and profitable
• Banner ads = lowest rates, but still useful at scale

Advanced ad formats – like playables and rewarded video – are thriving thanks to better engagement and a more user-friendly experience. And with the wider rollout of 5G, richer ad formats load faster and perform better, which is boosting ad revenue overall.

The ROI Case for Mobile Ads

Mobile advertising doesn’t just earn big for publishers – it works for advertisers, too.

• Mobile ads have up to 89% higher engagement than desktop ads (eMarketer, 2025)
• In-app ads convert 150% better than mobile web ads, likely due to better personalization and targeting (eMarketer, 2025)

This kind of ROI keeps brands coming back – and keeps budgets flowing into mobile channels.

The U.S. Leads in Ad Spend

The United States alone is expected to exceed $200 billion in mobile ad spend in 2024, accounting for about 66% of all U.S. digital ad spending (SensorTower, 2025). That highlights how critical mobile is in mature markets.

Monetization + Growth = The Loop

For app developers, advertising isn’t just about making money – it also fuels growth.

Many of today’s top apps use ad revenue to fund user acquisition. For example, mobile games might monetize with rewarded ads, then reinvest that revenue into paid ads on platforms like Google and Meta. That creates a growth loop: more users → more revenue → more users.

At Udonis, we’ve helped dozens of top apps maximize mobile ad performance. Formats like rewarded video and interactive playables don’t just bring in revenue – they often improve user retention when used thoughtfully.

But ad success doesn’t just come from format – it comes from testing, iteration, and targeting. As privacy rules evolve and new channels open up, continuous creative testing and audience optimization are what keep campaigns profitable.

And yes, costs have gone up. But when monetization strategies keep pace, user acquisition remains just as scalable. That’s how the best apps continue to grow, and it’s the model we help our partners execute every day.

Key Trends Shaping the Mobile App Market in 2025

AI-Powered Apps Are Becoming a Category of Their Own

Artificial intelligence (AI) has gone from backend tech to a full-blown app category in 2025.

The most obvious example? ChatGPT’s mobile app, which launched in 2023 and became a global hit just two years later. By mid-2025, it ranked #1 worldwide in downloads, overtaking long-time leaders like TikTok and Instagram (AppMagic, 2025).

What’s even more impressive is its monetization. In June 2025, ChatGPT pulled in $185 million from its premium subscription, making it the second-highest grossing app globally that month, right behind TikTok (AppMagic, 2025). That’s a huge milestone for a productivity app.

Other AI apps – like generative image tools, writing assistants, and educational platforms – are also gaining traction fast. Developers are now adding AI features like smart chatbots, content generation, and task automation to improve user engagement and retention.

Bottom line: AI apps aren’t just trending – they’re transforming what users expect. And with the tech becoming easier to integrate, we’ll see even more AI-powered apps in every category.

Mobile Gaming Still Reigns

Mobile games continue to be the largest and most profitable app category – and that’s not changing anytime soon.

In 2024, mobile gaming revenue hit about $81 billion on app stores. That made up 38% of total app revenue and over half of consumer spend across app stores. By 2030, mobile gaming is projected to reach over $150 billion annually, more than half the global gaming market (SensorTower, 2025).

What’s Driving Mobile Gaming in 2025?

• Cross-platform play: Games like Genshin Impact and Fortnite now run seamlessly across mobile, console, and PC
• Hybrid-casual games: Titles like Subway Surfers and Candy Crush Saga continue to dominate by mixing casual gameplay with deeper meta-systems
• Social and multiplayer: More games feature real-time multiplayer, chat, and social features (e.g. Clash of Clans). Esports-focused games like PUBG Mobile and Call of Duty Mobile are also growing
• AI + Live Ops: Studios are using AI for adaptive gameplay, personalized offers, and smarter NPCs. Live Ops – like seasonal events and regular updates – keep players coming back
• 5G + Cloud Gaming: With stronger networks, even AAA titles can now be streamed to mobile, closing the gap between console and smartphone gaming

Gaming continues to push the envelope on monetization, too. Many innovations – rewarded video, playable ads, hybrid monetization models – start in mobile games before spreading elsewhere.

The biggest growth markets? Emerging regions like India, Southeast Asia, and the Middle East, where mobile game revenue is seeing double-digit growth year over year.

Emerging Markets Are Powering the Next Wave of Growth

The next billion app users are coming from places like India, Brazil, Indonesia, Mexico, Nigeria, and Vietnam. These regions are seeing rapid smartphone adoption – and with it, skyrocketing app downloads and engagement.

In fact, India is now the #1 country for app downloads, surpassing the U.S. in 2024 (SensorTower, 2025).

From 2024 to 2025, Asia-Pacific – including China, India, and Southeast Asia – is expected to lead global revenue growth.

Projections show:

• ~15% annual growth in China
• ~14% in India and Vietnam

• The region already makes up about 32% of global app revenue, and that share is still rising

Local Apps, Global Influence

We’re also seeing local players gain ground. Chinese companies like ByteDance (TikTok) and Pinduoduo (Temu) have expanded globally. Meanwhile, regional platforms in India, the Middle East, and Southeast Asia are now leading their respective app charts.

And the “super app” model is taking off in markets like Southeast Asia and Africa. Apps like Grab and Gojek offer payments, shopping, ride-hailing, and more in one platform – an approach built for emerging mobile-first markets.

Challenges and Opportunities

Emerging markets offer massive user acquisition potential, often with lower CPI (cost-per-install). But monetization can be tougher due to lower ARPU.

Still, that gap is closing. As smartphone usage matures, so does consumer and advertiser spend. Brazil and Mexico, for example, are seeing increases in both eCPMs and in-app purchase revenue.

To win in these markets, developers must:

• Prioritize localization (language, cultural fit)
• Optimize for low-end devices and spotty networks
• Consider lightweight apps or offline functionality

The growth is there, but so is the need to adapt. Emerging markets are shaping the future of the app economy. The apps that rise to the top in these regions may look different, but they’ll set the tone for the next generation of global success stories.

Technology & Monetization Trends in 2025

5G Expansion Is Unlocking AR and VR

The global rollout of 5G networks is opening the door to richer, more immersive mobile experiences.

Apps are now making better use of augmented reality (AR) and, to a lesser extent, virtual reality (VR). For example, AR-powered features – like Snapchat Lenses or IKEA’s AR furniture tools – feel smoother and more responsive thanks to 5G’s speed and low latency.

While mobile VR is still early-stage (and often requires additional gear), tools like Google Cardboard and Oculus Link show promise. Overall, AR and mixed reality are gaining ground, especially in gaming, social media, and retail. As devices and networks improve, expect more apps to experiment with immersive tech.

Privacy Changes Are Reshaping User Acquisition

Privacy regulations are forcing major shifts in how mobile marketers operate.

Apple’s App Tracking Transparency (ATT) and Google’s upcoming Privacy Sandbox for Android have made targeting and tracking more difficult. As a result, 2025’s user acquisition strategies look different than they did just a couple years ago.

To adapt, marketers are turning to:

• Organic growth channels (ASO, influencer marketing)
• Stronger retention strategies
• First-party data collection (with clear user consent)

Compliance with GDPR, CCPA, and other regulations is more important than ever. But these shifts also come with a silver lining: more transparency and trust between users and developers.

The bottom line? Growth now depends on smart, creative, privacy-conscious marketing.

Hybrid Monetization Models Are Becoming the Norm

Gone are the days of relying on just one revenue stream. In 2025, the most successful apps use hybrid monetization – mixing ads, in-app purchases (IAP), subscriptions, and even commerce.

Take mobile games as an example. Many now combine:

• IAP packs
• VIP subscription passes
• Rewarded video ads

Streaming apps are doing the same by adding ad-supported subscription tiers to reach more users. Other categories, like news apps, may offer free ad-supported content, premium subscriptions, and one-time article purchases – all in the same product.

The goal?

Maximize user lifetime value (LTV) by monetizing both paying and non-paying users. Industry data shows this mixed model is being adopted across the board – and it’s quickly becoming standard.

Retention Is the New Growth

As user acquisition gets more expensive, retention is where the real value lies.

In 2025, top-performing apps are laser-focused on keeping users engaged. Tactics include:

• Push notifications
• Personalized experiences
• Daily rewards and loyalty programs
• Frequent feature updates and events

In mobile games, daily logins, time-limited events, and social features are now core to retention strategy. But the trend goes far beyond gaming.

More developers are tracking metrics like:

• 30-day retention

• ARPU / ARPDAU (average revenue per daily user)
• LTV (lifetime value)

It’s a shift from chasing installs to building long-term value. Sustainable monetization now beats raw growth, and smart retention tactics are what make that possible.

Final Thoughts on the Mobile App Market

The mobile app market in 2025 is massive, fast-moving, and full of opportunity. Annual revenue now reaches into the hundreds of billions. Growth remains strong. And innovation is nonstop – whether it’s AI redefining what apps can do or new monetization models unlocking new ways to earn.

For developers and publishers, the message is clear: stay informed, stay agile, and keep evolving. Those who understand platform shifts, changing user behavior, and emerging tech will stay ahead of the curve.

Investors continue to see mobile as a core part of the digital economy – and they’re right. With billions of users still coming online for the first time, there’s a long runway ahead for growth, experimentation, and entirely new ideas.

This is the moment to build.

Data Source

1. Sensor Tower, 2025. State of Mobile 2025
2. Statista 2025. Mobile App Market Data
3. Newzoo, 2025. Global Games Market Report 
4. AppMagic, 2025. Top Mobile Games and Publishers
5. eMarketer, 2025. Mobile Gaming 2025