Global app installs shrank again in 2025 even as mobile consumers opened their wallets wider than ever, underscoring a market that is monetizing existing users rather than adding new ones. According to Appfigures’ annual analysis, downloads across the App Store and Google Play dropped 2.7% to an estimated 106.9 billion, while consumer spending surged 21.6% to roughly $155.8 billion.
The Paradox Of Fewer Installs And Higher Revenue
It’s the fifth straight year of declining downloads since the 2020 peak of 135 billion, yet the cash register keeps ringing. The explanation is structural: a maturing installed base, pricier user acquisition, tighter privacy rules, and better monetization. Developers are converting the users they already have with subscriptions, premium tiers, and smarter in‑app purchase design. More annual plans, introductory promotions, and paywall testing are pushing average revenue per user higher even as acquisition slows.
Non‑game apps now drive the majority of spending. Appfigures estimates non‑game outlays hit $82.6 billion in 2025, up 33.9% year over year, outpacing mobile games at $72.2 billion, which still accounts for 46% of total spend but grew a more modest 10%. From streaming and productivity to health, finance, learning, and AI‑enhanced tools, utility and entertainment services with recurring value are capturing a durable share of wallets.
Global Downloads Keep Slipping as Installs Decline Again
The volume side tells a different story. Overall installs fell to 106.9 billion from 109.8 billion in 2024. Mobile game downloads slid sharply to 39.4 billion, down 8.6% after a 6.6% drop the prior year. Non‑game app downloads were effectively flat at 67.4 billion, edging up 1.1%.
Consumers are sticking with what they know. Time spent concentrates in a handful of super‑scale apps, phone upgrade cycles have lengthened, and discovery is diffuse across social, search, and creator ecosystems. For developers, this means a tougher climb to the top charts and a premium on retention mechanics over raw install growth. Firms like data.ai and Sensor Tower have tracked similar shifts over the past few years, pointing to market saturation and rising acquisition costs as persistent headwinds.
The Subscription Stack Matures as Monetization Deepens
Behind the revenue outperformance is a maturing subscription stack. Tooling that helps run paywalls, manage entitlements, and optimize renewal funnels has moved from nice‑to‑have to critical infrastructure. Subscription platform RevenueCat raised a $50 million Series C to scale its suite, while Appcharge secured $58 million to help mobile games refine monetization. Liftoff Mobile, a longtime performance marketing and monetization player, has filed for an IPO, a sign that the broader app growth ecosystem is becoming an investable category in its own right.
Best‑in‑class developers are leaning into price testing, feature gating, and bundles to defend net revenue amid rising fees and ad costs. Expect more family plans, annual‑only options with meaningful discounts, and hybrid models that blend ad‑supported tiers with unlockable premium features. The goal is predictable lifetime value and lower churn, not a one‑time spike in installs.
United States Snapshot: Spending Up as Installs Dip
In the U.S., the pattern held. Consumers spent an estimated $55.5 billion across mobile apps in 2025, up 18.1% from 2024, while downloads slipped 4.2% to around 10 billion. Non‑game spending led the gains at $33.6 billion, up 26.8% year over year, versus $21.9 billion on games, up 6.8%. On the volume side, non‑game apps saw about 7.1 billion installs and games 2.9 billion.
The U.S. profile reflects a high‑income, subscription‑friendly audience that views phones as essential productivity and entertainment hubs. That favors services with clear recurring value—think bundled streaming, cloud storage, learning platforms, fitness, and financial toolkits—and raises the bar for newcomers seeking organic breakout growth.
What to Watch Next for Apps, Revenue, and Installs
With installs under pressure, 2026 will hinge on retention, pricing, and product velocity. Generative AI features are turning into premium differentiators across categories, potentially boosting willingness to pay as models improve. On the platform side, evolving store policies, alternative billing in select markets, and new distribution rules could nudge how and where users convert, even if they don’t materially reverse the download slump.
The headline remains clear: the mobile economy is decoupling unit growth from revenue growth. For developers and marketers, that means building for durable relationships, not just downloads—because the money is not in the first tap, it’s in the months that follow.
