App economy recovered in 2023, with $171B in consumer spending, but downloads were flat

App economy recovered in 2023, with $171B in consumer spending, but downloads were flat

The app economy rebounded in 2023 after a slowdown in 2022, with consumer spending hitting $171 billion. While downloads remained flat at 257 billion, non-game app spending surged by 11%, reaching $64 billion.

TikTok played a significant role in driving consumer spending, hitting over $10 billion in lifetime spending and leading the growth in social apps and the creator economy. The overall growth in consumer spending was also attributed to the rise of generative AI apps like ChatGPT and Ask AI.

AI integration became increasingly popular, with thousands of apps incorporating terms like "chatbot" and "GPT" into their descriptions. Apps with AI features experienced a notable 11% year-over-year growth in downloads.

Despite mobile gaming experiencing a 2% spending decline, downloads remained consistent, with top genres including Hypercasual, Simulation, and Action. Notable milestones included Genshin Impact crossing $4 billion in lifetime spending.

Chinese shopping apps like Temu and Shein saw significant growth in Western markets, while social and entertainment apps witnessed a 12% increase in time spent and a 10% rise in spending.

Post-pandemic trends persisted, with travel app downloads increasing by 13%, particularly in travel services, tour booking, and flight booking categories.

The report provides detailed insights into various app categories, including finance, retail, video streaming, social media, food & drink, travel, health & fitness, and sports, highlighting top performers by country and key metrics such as installs, spending, and time spent.