The State of Mobile: Consumer Spending on Apps Reaches $171 Billion
In 2023, the mobile economy experienced a modest 3% increase in consumer spending on apps, reaching a total of $171 billion across the App Store, Google Play, and third-party Android app stores in China. This growth is attributed to various factors, including the success of non-game apps, particularly social apps and the creator economy, led by TikTok’s achievement of over $10 billion in lifetime spending.
Non-Game Apps Drive Growth
Consumer spending on non-game apps grew 11% year-over-year in 2023 to reach $64 billion. This growth is largely driven by social apps and the creator economy, with TikTok leading the way. The short-form video app’s milestone of over $10 billion in lifetime spending marks a significant achievement for the company.
TikTok’s Success
TikTok’s success can be attributed to its engaging content, user-friendly interface, and effective monetization strategies. As a non-game app, TikTok has managed to tap into the vast user base on mobile devices, offering an immersive experience that keeps users engaged for extended periods.
Breakout Games in 2023
Despite the growth of non-game apps, the gaming industry also experienced notable trends in 2023. Top genres included Hypercasual, Simulation, and Action, with breakout games such as Monopoly GO and EA Sports FC Mobile Soccer driving downloads.
Chinese Shopping Apps Gain Popularity
Chinese shopping apps like Temu and Shein grew 140% in 2023 as they expanded into Western markets, indicating a growing demand for e-commerce services on mobile devices. Social and entertainment apps also experienced significant growth, with time spent increasing by 12% to 3 trillion hours.
Travel and Ticketing Apps Witness Growth
Post-pandemic trends continued in 2023, with travel app downloads growing 13%, driven by an increase in travel services (26%), tour booking (80%), and flight booking (43%). Similarly, ticketing apps jumped 31%, thanks to big concerts by Taylor Swift and Beyonce.
Breakdown of Top Apps and Games
The top app by installs and spending was TikTok, while Facebook remained the No. 1 app by time spent. The top games were Subway Surfers (downloads), Candy Crush Saga (spending), and Roblox (monthly active users).
Key Takeaways from the Report
- Consumer spending on apps reached $171 billion in 2023.
- Non-game apps drove growth, with social apps and creator economy leading the way.
- TikTok achieved over $10 billion in lifetime spending.
- Gaming industry trends included Hypercasual, Simulation, and Action genres.
- Chinese shopping apps gained popularity in Western markets.
- Travel and ticketing apps experienced growth post-pandemic.
Conclusion
The mobile economy continues to evolve, with consumer spending on apps reaching new heights. The success of non-game apps, particularly social apps and the creator economy, highlights the growing importance of user-generated content and community-driven experiences on mobile devices. As the industry continues to grow, it will be essential for developers to innovate and adapt to changing trends and user preferences.
Sources
- TechCrunch: "The State of Mobile: Consumer Spending on Apps Reaches $171 Billion"
- Statista: "Mobile app stores’ revenue worldwide from 2020 to 2025"