Mobile app economy sees rising spending despite falling downloads

The mobile app economy is experiencing a significant shift as in-app spending rises while global downloads stagnate or decline. According to data from Sensor Tower and RevenueCat, consumer spending on apps has grown significantly, reaching figures such as $167 billion in in-app purchase revenue, even as total downloads have seen consecutive years of decline.

This trend is driven by a move toward higher lifetime value from existing users rather than sheer volume of new installs. Notably, non-gaming apps have begun to overtake gaming apps in in-app purchase revenue for the first time.

Furthermore, the rise of AI coding tools has drastically increased the supply of new applications. Monthly new subscription app launches have surged from approximately 2,000 in early 2022 to over 14,700 in early 2026. However, this influx of new competition has not translated to immediate market share; apps launched before 2020 still capture 69% of subscription revenue, while apps launched in 2025 or later account for only 3%.