5-Year Market Forecast: App Spending Will Reach $233 Billion by 2026

Summary

According to Sensor Tower's market forecast, global consumer spending on premium apps, in-app purchases, and subscriptions across Apple's App Store and Google Play will reach $233 billion by 2026, representing a 77% increase from $132 billion in 2021. This growth is underpinned by a compound annual growth rate (CAGR) of 12%. The App Store is projected to experience a higher CAGR of 13.7%, contributing $161 billion, while Google Play will grow at 8.9% CAGR to $72 billion.

The United States will outpace global trends with consumer spending hitting $86 billion at a 16.5% CAGR; the App Store in the US will grow at 18.8% CAGR to $59.5 billion, and Google Play at 12.3% CAGR to $27.4 billion. First-time downloads will continue to climb steadily, reaching 181 billion by 2026 at a 4.7% CAGR, with Google Play driving most of the growth at 5.2% CAGR to 143.1 billion. However, US first-time downloads will grow slowly at 0.5% CAGR to 13.4 billion, primarily from the App Store.

In terms of revenue composition, non-game apps will represent the majority of iOS spending by 2026, with games dropping to 43% revenue share from 66% in 2020. On Google Play, games will still hold 65% share but are declining. Entertainment leads non-game categories on iOS, while Social and Entertainment tie on Google Play at 6% each.

Regionally, Asia will see the most app adoption growth, with 88.3 billion first-time downloads at 6.2% CAGR, led by India reaching 40.2 billion new downloads. The report highlights sustained consumer interest in Business and Medical apps, signaling opportunities beyond gaming.