iOS apps will soon make more money than games. By 2026, iPhone users will spend more on paid apps than on mobile gaming, finds research from Sensor Tower.
Sensor Tower, a company specializing in the analysis of data related to mobile applications, expects increased spending on the App Store and Play Store in the near future. By 2026, smartphone users will spend $233 billion a year on paid apps, the firm’s latest report suggests.
“That’s 77% more than the $132 billion spent by consumers in 2021,” says Sensor Tower. The market for premium applications should therefore continue to grow at a rate sustained over the next four years. The sector is benefiting from the renewed interest caused by the Covid-19 crisis.
Paid iOS apps will generate $91 billion in 2026
As always, the majority of expenses will be incurred through the App Store. iPhone and iPad users are expected to spend $161 billion, compared to $72 billion for Android smartphones. The Play Store has always generated less revenue than the App Store. “Although consumer spending habits have normalized since the peak of the pandemic, the gross revenue of the two stores will continue to increase every year,” Sensor Tower prophesied based on market data.
According to the analysis company, the balance of power between smartphone games and other applications is about to reverse on iOS. So far, mobile games have generated the most money on the App Store. In the first quarter of 2021, for example, games generated 44.7 billion of the 64.9 billion dollars spent over the period.
In 2022, the App Store is expected to earn $53 billion from games and $39 billion from other application categories. Within four years, “non-gaming” apps will generate more money than iPhone games. “By 2026, mobile games will only account for 43% of revenue share in this market, down 23 points from 2020,” the report notes.
The change should take place in during the year 2024. Sensor Tower predicts that $63 billion will be generated by apps that year, compared to $62 billion for games. Among the hottest apps on the App Store are entertainment apps. In 2026, apps are expected to generate up to $91 billion in one year, compared to $70 billion for games.
On the Play Store, games will continue to rake in more money than other apps. However, the market share of gaming on Android should shrink, and drop by 18 points, to approach the other applications in the store by 2026.
Source :
SensorTower