In-App Purchase Market Report 2025

The in-app purchase market size has grown exponentially in recent years. It will grow from $209.13 billion in 2024 to $257.23 billion in 2025 at a compound annual growth rate (CAGR) of 23%. The growth in the historic period can be attributed to smartphone penetration, app monetization strategies, user engagement strategies, content consumption trends, app store optimization.

The in-app purchase market size is expected to see exponential growth in the next few years. It will grow to $657.18 billion in 2029 at a compound annual growth rate (CAGR) of 26.4%. The growth in the forecast period can be attributed to subscription-based models, emerging markets growth, cross-platform integration. Major trends in the forecast period include mobile gaming dominance, subscription models, augmented reality (AR) integration, personalization and customization, digital goods and services.

The rise in downloads of video streaming, gaming, and health and fitness applications is anticipated to drive the growth of the in-app purchase market. The growing usage of mobile applications enables more users to access content and expands the potential for in-app purchases. For example, in August 2024, Business of Apps, a US-based B2B media platform, reported that app and game downloads reached 148.2 billion in 2023, reflecting a 3.9% increase from the previous year. Therefore, the increasing downloads of video streaming, gaming, and health and fitness applications are expected to propel the growth of the in-app purchase market.

The in-app purchase market is expected to grow due to the increasing demand for smartphones. Smartphones are handheld mobile devices with advanced computing capabilities, offering features such as internet connectivity, apps, and communication tools. In-app purchases are facilitated by smartphones, allowing users to buy digital content, services, or upgrades directly within applications through integrated payment systems. According to Uswitch Limited, there was a 3.8% increase in mobile connections in the UK beginning in 2022, reaching 71.8 million. By 2025, it is projected that 95% of the 68.3 million people living in the UK will have smartphones. Therefore, the increasing demand for smartphones is expected to drive the growth of the in-app purchase market.

Numerous companies in the in-app purchases market are concentrating on developing innovative solutions, such as new payment option features, to simplify user transactions and improve convenience. A payment option feature allows users to choose from various methods to complete payments within an app. For example, in May 2024, Google Play, a subsidiary of Google LLC, a US-based technology company, introduced a new feature called 'Ask Someone Else to Pay.' This feature enables users to request payments for in-app purchases from others, thereby enhancing payment flexibility within its ecosystem. Users can click a button to create a link that can be sent via text or messaging apps to someone else, asking them to fulfill the payment for an in-app purchase. The sender will be informed that the recipient must know their email address and will be able to view the item being purchased. The recipient has 24 hours to complete the payment before the request expires.

Major companies in the in-app purchase market are concentrating on developing innovative solutions, such as the instant search feature, to enrich user engagement and provide seamless purchasing experiences. The instant search feature allows users to retrieve information in real-time through responsive search functionalities. For instance, in November 2022, US-based instant messaging and VoIP service provider WhatsApp launched a business search feature in Brazil, Colombia, Indonesia, Mexico, and the UK, enabling in-app purchases. This business search feature facilitates the identification of contacts for businesses on their websites, saving users time.

In August 2024, Amazon, a US-based multinational technology company, entered into a partnership with TikTok for an undisclosed amount. This collaboration aims to create a new arrangement that will enable TikTok users to make Amazon purchases directly within the app, without needing to navigate to the Amazon app or website. TikTok is a China-based social media platform that integrates in-app purchasing features.

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.

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. The countries covered in the in-app purchase market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

In-app purchases refer to acquiring additional services, features, or functions within an application on computers, smartphones, and tablets. This model allows access to premium content, digital goods, and subscriptions directly within the application, monetizing specialized features while providing basic content for free.

The primary types of in-app purchases are consumable, non-consumable, and subscription. Consumable in-app purchases involve digital products usable for a single time, requiring repurchase after depletion. Operating systems, including Android, iOS, and others, support different in-app purchase categories such as gaming, entertainment, music, health, fitness, travel, hospitality, retail, e-commerce, education, learning, and other app categories.

The in-app purchase market research report is one of a series of new reports that provides in-app purchase market statistics, including in-app purchase industry global market size, regional shares, competitors with a in-app purchase market share, detailed in-app purchase market segments, market trends and opportunities, and any further data you may need to thrive in the in-app purchase industry. This in-app purchase market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The in-app purchase market includes revenues earned by entities by providing services such as buy characters, upgrade abilities, and spend real money on in-game currencies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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