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Apple’s App Store vs Google Play: App spending will reach $233 billion by 2026

Apple’s App Store vs Google Play: App spending will reach $233 billion by 2026 By 2026, global consumer spending on premium apps, in-app purchases, and subscriptions will reach $233 billion across Apple’s App Store and Google Play. This is 77 percent higher than the $132 billion consumers spent in 2021. Also Read

  • Posted on 14th Jun, 2022 19:22 PM
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Apple’s App Store vs Google Play: App spending will reach $233 billion by 2026 Image

By 2026, global consumer spending on premium apps, in-app purchases, and subscriptions will reach $233 billion across Apple’s App Store and Google Play. This is 77 percent higher than the $132 billion consumers spent in 2021. Also Read - Pokemon Go surpasses $6 billion in lifetime player spending: Check details

Although consumer spending habits have normalized since the initial spike during the pandemic, gross revenue on both app stores will continue to climb each year with a 12 percent compound annual growth rate (CAGR), reaching $233 billion in 2026, reports Sensor Tower. Also Read - Amazon to no longer offer in-app Kindle purchases on Android app, but there's a catch

Also Read - Netflix adds three new games to its catalogue: Dragon Up, Moonlighter, Townsmen

As per report, the App Store will see a CAGR of 13.7 percent through 2026 to reach $161 billion annually. On Google’s platform, consumer spending is projected to grow at a CAGR of 8.9 percent, reaching $72 billion within the next five years.

The United States will outpace the global trend across the board, with consumer spending projected to reach $86 billion in 2026 at a CAGR of 16.5 percent. Apple’s App Store is forecasted to experience a CAGR of 18.8 percent, reaching $59.5 billion, while Google Play will climb to $27.4 billion at a CAGR of 12.3 percent.

Despite slowing since the surge in 2020, first-time downloads will continue to set new records in the next five years, climbing at a rate of 4.7 percent CAGR to 181 billion in 2026. The growth of app adoption on the App Store will experience 2.9 percent CAGR, reaching 37.8 billion within the next five years, while Google Play will surpass the combined CAGR by climbing 5.2 percent to 143.1 billion.

The velocity of first-time download growth in the U.S. lags behind global trends, with combined installs across the App Store and Google Play slated to climb to 13.4 billion in 2026 at a rate of 0.5 percent CAGR. Most of the growth is driven by the App Store, which will experience a 1.4 percent CAGR to reach 8.2 billion; Google Play will conversely see a decline of 1.2 percent CAGR to 5.2 billion downloads in 2026.

Although mobile games will continue to reign as the single highest grossing category, non-game apps will collectively outpace its revenue share by 2026—at least on Apple’s App Store. By 2026, mobile games will represent 43 percent of revenue share on that marketplace, down 23 points from 2020. On Google Play, mobile games will also see a downward trend over the next five years; however, it will maintain its majority revenue share with 65 percent in 2026, down 18 points from 2020.

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