How Has the In-App Purchase Market Size Evolved in Recent Years?
The in-app purchase market has seen considerable growth due to a variety of factors.
• The market size of in-app purchases has seen significant expansion in the past few years. It is projected to surge from $209.13 billion in 2024 to $257.23 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 23.0%.
Factors that contributed to this growth in the past include the spread of smartphones, app revenue generation methods, strategies for user involvement, trends in content usage, and optimization of app stores.
What Is the Forecasted Market Size and Growth Rate for The In-App Purchase Market?
The in-app purchase market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for in-app purchases is projected to undergo rapid expansion in the coming years, reaching a size of $657.18 billion by 2029, with a compound annual growth rate (CAGR) of 26.4%.
The advancement in the forecast period can be credited to the rise of subscription-based models, growth in emerging markets, and cross-platform integration. Key trends to watch for during the forecast period are the dominance of mobile gaming, the proliferating subscription models, integration with augmented reality (AR), individualization and customization, as well as the rise of digital goods and services.
What Factors Are Driving Growth In The In-App Purchase Market?
The surge in downloads for video streaming, gaming, as well as health and fitness apps is projected to fuel the expansion of the in-app purchase industry. The growing utilization of mobile apps broadens user access to content, thereby enhancing the scope for in-app transactions. For instance, per Business of Apps, a B2B media platform based in the US, by August 2024, the previous year saw a 3.9% growth in app and game downloads, hitting 148.2 billion in 2023. Consequently, the escalating downloads of video streaming, gaming, and health and fitness apps are set to steer the growth of the in-app purchase marketplace.
What Key Areas Define The Segmentation Of The Global In-App Purchase Market?
The in-app purchase market covered in this report is segmented –
1) By Type: Consumable, Non-Consumable, Subscription
2) By Operating System: Android, iOS, Other Operating Systems
3) By App Category: Gaming, Entertainment And Music, Health And Fitness, Travel And Hospitality, Retail And E-Commerce, Education And Learning, Other App Categories
Subsegments:
1) By Consumable: Virtual Currency (Coins, Gems), Temporary Items (Power-Ups, Boosts), Limited-Time Offers
2) By Non-Consumable: Permanent Items (New Levels, Characters), Unlockable Features (Ad Removal, Premium Content)
3) By Subscription: Monthly Subscriptions, Annual Subscriptions, Freemium Models With Premium Features
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How Are Emerging Trends Reshaping The Dynamics Of The In-App Purchase Market?
A rising trend among in-app purchases market corporations revolves around the development of novel solutions such as innovative payment features. These features aim to simplify user transactions and raise the level of convenience. A case in point is the May 2024 innovation by Google Play, a subsidiary of the American tech firm, Google LLC. They launched a unique feature named 'Ask Someone Else to Pay'. This feature empowers users to solicit others to make payments for the in-app purchases, thus increasing the payment flexibility within Google Play's ecosystem. With a simple click, users can initiate a link, shareable via text or messaging apps, to request someone else to shell out for an in-app buy. The sender will get a notification stating that the recipient must know their email address and can see the item being bought. The recipient gets 24 hours to make the payment before the request lapses.
Who Are the Key Players in the In-App Purchase Market?
Major companies operating in the in-app purchase market include:
• Amazon.com Inc.
• Apple Inc.
• Google LLC
• The Walt Disney Company
• Tencent Holdings Limited
• Netflix Inc.
• PayPal Holdings Inc.
• Square Inc.
• Rakuten Group Inc.
• Stripe Inc.
• Spotify Technology S.A.
• Flipkart Internet Private Limited
• Myntra Designs Private Limited
• Epic Games Inc.
• AppLovin Corporation
• Supercell Oy
• Tinder
• Unity Technologies SF
• Adyen N.V.
• Digital Turbine Media Inc.
• IronSource Mobile Ltd.
• Machine Zone Inc.
• InMobi Technologies Pty. Ltd.
• VentureBeat LLC
• Bango PLC
• Vungle Inc.
• Adapty Technology Inc.
• Ajio Online Services Private Limited
• Chartboost Inc.
• Fortumo Oyj
• Aarki Inc.
• Liftoff Inc.
• SuperSonic Studios Ltd.
• Swrve Inc.
What Is The Most Dominant Region In The In-App Purchase Market?
Asia-Pacific was the largest region in the in-app purchase market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the in-app purchase market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
