App downloads dropped once more in 2025, yet user spending surged to almost $156 billion

Mobile App Revenue Surges in 2025 Despite Fewer Downloads

According to the latest annual analysis from Appfigures, the rise of subscription-based models significantly increased mobile app earnings in 2025, even as the total number of app downloads dropped for the fifth year in a row. Combined downloads from the App Store and Google Play reached approximately 106.9 billion worldwide, marking a 2.7% decrease compared to the previous year. In contrast, consumer spending soared by 21.6%, hitting an estimated $155.8 billion during the same timeframe.

This trend highlights the effectiveness of app creators, marketers, and publishers in encouraging users to make purchases within apps or sign up for subscriptions, despite a shrinking pool of new app installers.

Changing Revenue Landscape: Non-Game Apps Take the Lead

The report also underscores a notable shift away from mobile games as the primary source of app revenue. In 2025, spending on mobile games reached $72.2 billion, making up about 46% of all app-related expenditures—a 10% increase from the previous year. However, non-game apps saw even greater growth, with consumer spending jumping 33.9% year-over-year to $82.6 billion.

Subscription Models Drive Industry Growth

Although many users may be frustrated by the prevalence of in-app purchases and subscription requirements, these monetization strategies have provided developers with more reliable income streams. The move toward recurring payments has also fostered a thriving ecosystem of businesses supporting the app industry. Notable examples include RevenueCat, a subscription management service that secured a $50 million Series C round, and Appcharge, a company helping mobile games enhance their revenue strategies, which announced a $58 million Series B in August. Additionally, Liftoff Mobile, a firm specializing in app marketing and monetization, recently filed for an IPO.

Download Numbers Continue to Slide

Despite rising revenue, the number of app downloads continued to fall in 2025. After peaking at 135 billion installs in 2020 during the pandemic, downloads have steadily declined. The 2025 total of 106.9 billion was down from 109.8 billion in 2024, following a 3.3% drop between 2023 and 2024.

Mobile games experienced a sharper decline, with downloads falling 8.6% year-over-year to 39.4 billion, after a 6.6% decrease the previous year. In contrast, non-game app downloads remained relatively stable, increasing just 1.1% to 67.4 billion.

Spotlight on the U.S. Market

The report also examines trends in the United States. American consumers spent an estimated $55.5 billion on mobile apps in 2025, an 18.1% increase from $47 billion in 2024. However, downloads dropped 4.2% to 10 billion, down from 10.4 billion the previous year. Spending on non-game apps in the U.S. climbed 26.8% to $33.6 billion, while game-related spending rose 6.8% to $21.9 billion.

In 2025, U.S. users downloaded approximately 7.1 billion non-game apps and 2.9 billion games.

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