ReportSensor Tower
State of Mobile 2025: TikTok Edition
1 Jan 202580 pages~91 min full read
The mobile industry generated a record $150 billion in in-app purchase revenue in 2024, marking a 12.5% year-over-year increase despite a 1% decline in global downloads.
See it on page 8Artificial Intelligence is the primary industry catalyst, evidenced by a 200% revenue surge for AI chatbots and $1.3 billion in annual spend on generative AI applications.
See it on page 31The Productivity and Utility sector grew 35% to reach $15 billion in revenue, driven largely by the integration of AI tools.
See it on page 43The mobile gaming market is recovering, with eleven individual titles surpassing $1 billion in annual revenue during 2024.
See it on page 17The marketplace is increasingly globalized, with nearly 80% of total consumer spend now occurring outside of an app’s home country.
See it on page 21Dating apps like Tinder and Grindr are shifting toward high-value interactions, resulting in a 14% revenue increase despite a decrease in total user time spent.
See it on page 70Total user engagement reached an all-time high of 4.2 trillion hours in 2024, with growth primarily driven by the Entertainment, Productivity, and Photo & Video sectors.
See it on page 15The mobile industry reached a significant milestone in 2024, generating a record $150 billion in in-app purchase revenue, representing a 12.5% year-over-year increase. While global downloads experienced a marginal 1% decline to 136 billion, user engagement reached an all-time high of 4.2 trillion total hours. This growth was primarily fueled by non-gaming sectors, specifically Entertainment, Productivity, and Photo & Video, alongside a recovering mobile gaming market where eleven titles surpassed $1 billion in annual revenue. Geographically, North America and Europe remain the strongest monetization hubs, though nearly 80% of total consumer spend now occurs outside an app’s home country, signaling a highly globalized marketplace.
Artificial Intelligence has emerged as the primary catalyst for industry transformation, with AI chatbots recording a 200% revenue surge and generative AI apps reaching $1.3 billion in annual spend. This technology is being integrated across diverse verticals, from productivity tools to dating apps like Tinder and Grindr, which are utilizing AI to streamline user experiences and facilitate real-world connections. The Productivity and Utility sector specifically benefited from this trend, seeing a 35% revenue increase to $15 billion. Furthermore, niche categories such as short-form drama apps and fitness reward platforms are gaining significant traction, with the latter benefiting from a shift toward social "run clubs" and outdoor exercise.
The 2024 landscape also highlights a shift in monetization strategies and user behavior. In the dating sector, revenue grew by 14% despite a decrease in time spent, suggesting that users are prioritizing efficient, high-value interactions over passive scrolling. Meanwhile, the Health and Fitness category continues to see strong seasonal surges and global expansion in markets like Germany and Australia. Across all sectors, the industry is moving toward community-focused retention and sophisticated subscription models, leveraging AI to maintain high per-user monetization even as traditional download growth stabilizes in mature markets.
