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The global in-app purchase market reached a value of USD 195.74 Billion in 2024, reflecting the growing trend of in-app purchases across various digital platforms. This market is expected to grow at a CAGR of 20.70% during the forecast period of 2025-2034, ultimately attaining a value of USD 1284.55 Billion by 2034. The market is being significantly driven by the expansion of video streaming services, gaming, and health and fitness applications, where in-app purchases play a vital role in enhancing user experience and monetisation. As the in-app purchase market continues to expand, companies are adopting advanced technological solutions to improve their billing and payment system for smoother transactions. Additionally, promotional strategies and loyalty programs are becoming essential tools in attracting and retaining customers, thus boosting digital expenditure. With the rise of premium subscriptions and innovative monetisation models, the market size of in-app purchases is expected to grow exponentially, reinforcing its importance in the digital ecosystem.
Base Year
Historical Year
Forecast Year
Compared to mobile web ads, mobile apps convert around 3 times more product viewers, which can be crucial in boosting their in-app purchases. Mobile apps have higher conversion rates than mobile web ads, driving more product purchases and boosting in-app purchases due to the more immersive and streamlined user experience they offer.
As per the data by Broadband Search, global mobile connections stood at around 10.37 billion as of September 2024, offering ample opportunities for apps to increase revenue through in-app purchases. The growing number of mobile users provides a large audience for apps, increasing opportunities for in-app purchases as mobile engagement continues to rise.
As per industry reports, around 46% of Americans research products and services on a mobile app. Therefore, apps serve as a key touchpoint for consumer decision-making, directly influencing in-app purchases as users find it easier to make purchases within the same platform.
Value in USD Billion
2025-2034
In-App Purchase Market Outlook
*this image is indicative*
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Rise of online traffic, popularity of in-app purchases post pandemic, and impact of the gaming base are some major trends aiding the in-app purchase market growth.
The growing online traffic is expected to attract investors and clients for advertisements and the promotion of products and services. As per the data from the World Economic Forum, the use of smartphones for shopping increased more than twice from 2018 to 2021, which further fuelled online traffic as well as in-app purchase market opportunities, specifically in streaming and gaming services. Companies are spending a lot on advertising through digital media. Social media platforms such as Instagram, Facebook, LinkedIn, and WhatsApp are popular among millennials, which serves as an opportunity for investors to promote their business. Thus, the addition of new games and innovation in technology and a surge in expenditure on digital advertisement are expected to provide lucrative opportunities for the market expansion of in-app purchases during the forecast period.
Due to the COVID-19 pandemic in 2020, a significant number of businesses are still coping with operational challenges. However, the pandemic had a positive impact on the growth of the in-app purchase industry. During the global lockdowns amidst the pandemic, the number of end users increased, generating traffic through subscriptions to video streaming, gaming, and other health and fitness applications. These mobile applications offer exciting features and functionalities, along with discounts on subscriptions to keep the traffic in place, which is expected to drive the demand for in-app purchases as well in the coming years. Moreover, major players in the market are introducing new applications to the users and are introducing different strategies to upsurge their revenue and market share, thereby creating further opportunities for market growth. As per the data from Statistics Canada, post-pandemic there has been a rise in in-store shopping again, however mobile and in-app purchases still remain extremely popular among customers.
Mobile games continue to boost in-app purchases with the loyal gamer base, specifically whale users, contributing significantly to revenue generation. Whale users are those who spend significant amounts of money on in-app purchases, especially in free-to-play (F2P) models. These users make up a small percentage of gamers but contribute more than half of revenue to in-app purchases, which can boost the in-app purchase market revenue. For instance, Optimove, a company which targets customer retention tracked around 235 social gamers over 18 months and found that only one per cent of players, which is whales, bring in 30 per cent of social game revenue. Tapjoy, an app monetisation platform found in its research that the top 10 percent of an app’s spenders contribute around 70 percent to the in-app purchase (IAP) revenue, which can lead several marketers to focus solely on these players by building long-term engagement and offering a rewarding experience to these players.
Short video apps such as TikTok have gained significant popularity in recent years, surpassing 1.04 billion active users across the world in May 2024. Several users are spending greatly on virtual goods and other digital content, which makes it an up-and-coming app for in-app purchases. Out of 3.96 billion monthly active social media users worldwide, around 26.26% used TikTok at least once a month. As per the in-app purchase industry analysis, more than half of TikTok’s monthly active users are based in Asia-Pacific, the Middle East and Africa, which creates a positive landscape for in-app purchases in these regions. As per the data from AppsFlyer, around 60% of users who make an initial in-app purchase tend to become repeat customers, which is especially prevalent in short content apps that offer superior customer engagement. According to the data from Sensor Tower Store Intelligence, TikTok achieved more than USD 15 billion in lifetime global consumer spending across the iOS App Store and Google Play.
The global in-app purchase market is increasingly influenced by Artificial Intelligence (AI), which leverages machine learning to analyse customer behavior and purchase patterns. AI-driven analytics provide valuable insights across various industry verticals, helping businesses understand user preferences and optimise the user experience. In the loyalty industry, AI is utilised to offer personalized products and services, rewarding customers with reward points based on predictive analysis. This enhances the overall market growth by improving customer satisfaction and fostering stronger relationships, thus driving the adoption of in-app purchases. AI and machine learning continue to shape the market dynamics. In January 2025, Apple launched the 'Advanced Commerce API' to enhance large-scale in-app purchases, supporting business models like extensive content catalogs and subscription services. The API enables developers to manage in-app purchases more flexibly while leveraging the trusted App Store commerce system for payment processing and customer service.
The in-app purchase market has seen significant growth, driven by the increasing demand for e-commerce platforms and cloud-based deployment solutions. As more customers make purchases through mobile apps, concerns about personal data and privacy have risen. Websites and cloud services must comply with regulatory frameworks to ensure security and protect against data breach events. These breaches can impact customers' trust and influence their purchase decisions. Effective data protection is crucial for businesses to maintain a secure environment and retain customer loyalty in an increasingly digital marketplace, where privacy and security are paramount. In January 2025, Spotify began offering in-app purchases on iPhones in Europe after the Digital Markets Act (DMA) came into effect. For years, Spotify had been involved in a legal dispute, claiming that it was compelled to increase its subscription prices to cover costs associated with Apple's App Store regulations.
The in-app purchase market is rapidly evolving, driven by real-time analytics that offer immediate insights into user behavior and engagement metrics. With real-time analytics, businesses can gain actionable data that informs decision-making processes, enhancing app performance. Understanding market trends allows companies to tailor their strategies to meet consumer needs across diverse industry verticals. By leveraging real-time analytics, businesses can track app performance and adapt to shifting market conditions, gaining a competitive advantage. The availability of real-time analytics supports a better understanding of user behaviour, enabling companies to make data-driven decisions that align with market demands and expectations.
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In the global in-app purchase market, the gaming industry stands out due to its massive user base and consistent revenue generation. In-app purchases in gaming offer players access to exclusive content, power-ups, and in-game currency, which enhances their gaming experience. For developers, it provides a sustainable revenue stream, allowing for ongoing game updates and improvements. Real-time analytics help optimise gameplay and user engagement, driving player retention and boosting the overall app performance, ensuring long-term profitability within the competitive gaming market. In April 2024, Sanlo, a fintech startup, launched a closed beta of its webshop tool to help gaming companies avoid high app store fees. This tool allows developers to set up external webshops, cutting costs and boosting revenue by offering direct sales.
In the entertainment and music sector, in-app purchases offer users access to premium content such as ad-free experiences, exclusive tracks, or additional features like concert tickets. This model allows consumers to enjoy personalised content while providing developers with a steady revenue source. Through real-time analytics, platforms can track user preferences, refine content offerings, and improve engagement metrics. This helps businesses cater to consumer needs more effectively, offering a competitive advantage while keeping users satisfied with constant updates and tailored music experiences. Nintendo launched its new smartphone app, Nintendo Today, in March 2025. The app, designed for iOS and Android, aimed to directly connect with fans, delivering daily content, event schedules, and news. It featured an animated calendar, game-related content, and widgets for easier access.
In the global in-app purchase market, Android offers several advantages, especially its vast user base and open-source nature. The platform allows developers to create a wide range of monetisation strategies with minimal restrictions. Android users can easily access apps from various sources, enhancing their purchasing flexibility. Moreover, Google’s lower transaction fees compared to some competitors help developers retain a larger share of revenue. Google Play Pass launched in India in February 2022, offering Android users access to over 1000 apps and games without ads or in-app purchases. It benefits users with a curated collection across 41 categories and allows sharing within family groups. Google aimed to expand its global reach for developers and open new revenue streams. The service is available in 90 countries, with Indian users enjoying a prepaid option for flexibility.
iOS has established itself as a dominant player in the global in-app purchase market, offering developers access to a loyal and high-spending user base. Apple's tightly controlled ecosystem provides an excellent platform for monetisation, ensuring that apps meet quality standards and maintain high user satisfaction. In-app purchases on iOS benefit from secure payment options and seamless integration across Apple devices. Additionally, iOS users tend to make more frequent in-app purchases due to the platform's premium positioning. With real-time analytics and actionable data, developers can optimise their apps for better user engagement and higher revenue.
Auto-renewable subscriptions are widely popular in the global in-app purchase market, particularly for services offering ongoing access, such as streaming platforms, news apps, and gaming subscriptions. These subscriptions automatically renew at the end of each billing cycle unless canceled by the user. The benefit for businesses is predictable, recurring revenue, which helps in financial planning and growth. Apple App Store Connect allows developers to manage auto-renewable subscriptions, offering various levels and durations. Users can subscribe to one product per group, with upgrade, downgrade, or crossgrade options. Developers can adjust pricing, set availability, and track performance. They receive 70% of the price initially, rising to 85% after one year.
Non-renewing subscriptions provide access to a service or content for a fixed duration without automatically renewing. This type of subscription is beneficial for apps offering one-off content or short-term services, such as event-based access or limited-time premium features. For businesses, it reduces the risk of customer dissatisfaction due to unwanted renewals and appeals to users who prefer not to commit to recurring payments. Users benefit from flexibility and control over their purchases, with no obligation for future payments, which can lead to higher conversion rates in certain markets.
North America boasts one of the largest and most developed in-app purchase markets, driven by high smartphone penetration and a strong consumer spending culture. The market benefits from a mature digital infrastructure, enabling seamless transactions across apps. Users in the region are willing to spend on premium content, with a significant demand for subscription-based services like streaming and gaming. In April 2024, Viaplay, after discontinuing its direct-to-consumer app in North America, launched as an add-on subscription on Amazon Prime Video Channels for USD 5.99 per month. This move aims to expand its distribution, offering Nordic and European content like crime dramas and documentaries to U.S. viewers via Amazon and other partner platforms.
Europe presents a diverse in-app purchase market, with high smartphone adoption and increasing digital engagement. The region benefits from strong regulatory frameworks that protect user data, encouraging consumer confidence in in-app purchases. While markets like the UK, Germany, and France dominate, there’s also growing potential in Eastern Europe. European consumers are inclined to spend on apps related to entertainment, gaming, and productivity. The availability of multiple languages and diverse cultural preferences offers developers the opportunity to tailor in-app purchases, creating a broader appeal. Additionally, the European Union's regulations offer consistency across countries for developers.
The Asia Pacific region is one of the fastest-growing markets for in-app purchases, driven by a massive and diverse user base. Countries like China, Japan, and South Korea are tech powerhouses with highly engaged mobile users. Mobile gaming, digital content, and e-commerce are key drivers of the market, with consumers readily adopting in-app purchase models. The region's preference for mobile-first experiences, combined with an increasing middle-class population, creates a thriving environment for developers. In June 2024, Huawei considered implementing in-app purchase fees on its Harmony operating system, aiming to compete with Apple in China. It discussed a 20% fee for games, lower than the 30% charged by Apple, but later denied these claims, offering no details.
Latin America has emerged as a promising market for in-app purchases, with growing smartphone penetration and increasing mobile internet access. The region benefits from a young and dynamic population, which is increasingly turning to mobile apps for entertainment, education, and social connectivity. In-app purchases, particularly in gaming and subscription-based services, are on the rise, with users demonstrating a willingness to pay for premium content. Payment methods like mobile wallets and local payment options facilitate easy transactions. As the region continues to embrace digital transformation, developers can tap into a rapidly expanding, untapped market.
The key players in the market include Apple Inc., Disney, King.com Ltd., Netflix, Inc., Roblox Corporation, and Google LLC, among others. To expand their product range, these companies use various inorganic growth strategies, including frequent mergers, acquisitions, and partnerships.
Founded in 1976, the company is known for its products such as iPhone, iPad, Mac, Apple Watch, and Apple TV, among others. It offers high-quality hardware and software integration as well as high-end security to its users.
Founded in 1998 and based in California, the United States, the company is a technology leader best known for its search engine. Its product portfolio includes YouTube, Google Maps, Gmail, and Google Photos, among others.
Founded in 1998 and based in Shenzhen, China, the company offers its products and services in social media, entertainment, gaming, and financial services, among other sectors. The company is also known for investing in gaming companies such as Riot Games and Epic Games, among others.
In September 2023, Roblox Corporation, a gaming platform, launched new features to enhance subscription management. Users who subscribe to the platform’s premium plans can now create and sell 3D products, as well as sell traditional 2D assets that were previously restricted to the platform's marketplace.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
The global in-app purchase market report provides a comprehensive analysis of the market's segmentation, focusing on key factors influencing growth. It examines the various types of in-app purchases, the regions contributing to market expansion, and the different strategies employed by companies to maximise revenue. This segmentation offers valuable insights into the dynamic nature of the market.
Operating System Outlook (Revenue, Billion, 2025-2034)
Type Outlook (Revenue, Billion, 2025-2034)
Application Outlook (Revenue, Billion, 2025-2034)
Region Outlook (Revenue, Billion, 2025-2034)
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2024, the market reached an approximate value of USD 195.74 Billion.
The in-app purchase market is expected to grow at a CAGR of 20.70% between 2025 and 2034.
The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around USD 1284.55 Billion by 2034.
The major drivers of the market are a surging population, the increasing investments in social media and digital advertising, and the rising penetration of smartphones and the internet.
Upcoming trends in the global in-app purchase market include subscription models, personalised content, virtual goods, and enhanced payment options.
The major regions in the in-app purchase market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.
The major operating systems available in the market can be divided into Android and iOS, among others.
The various in-app purchase types considered in the market report are consumable, non-consumable, auto renewable subscriptions, and non-renewing subscriptions.
The applications categories included in the market report are gaming, entertainment and music, health and fitness, travel and hospitality, retail and e-commerce, and education and learning, among others.
The key players in the market are Apple Inc., Google LLC, Tencent Holdings Ltd., Netflix Inc., Spotify Technology S.A., Amazon.com, Inc, Disney, King.com Ltd., Creative Clicks, AdMaven, POCKETGUARD, PubMatic, Roblox, InMobi, Brainly, Recurly, Propeller Ads, and Tango, among others.
The iOS segment led the market, credit to the iOS operating system, as in-app purchases offer an enhanced user experience by avoiding interruptions from advertisements while using the application.
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REPORT FEATURES | DETAILS |
Base Year | 2024 |
Historical Period | 2018-2024 |
Forecast Period | 2025-2034 |
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Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Operating System |
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Breakup by Type |
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Breakup by Application |
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Breakup by Region |
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Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-723-689-1189
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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