Key Findings
Whether you’re building, scaling, or simply trying to keep users from ghosting your product, dive into what the numbers really say about the mobile app economy in 2025 with these 40 figures and statistics.
Table of Contents
Revenue and Growth
The mobile app industry isn’t just growing — it’s thriving. With billions of dollars flowing into the market from app purchases, subscriptions, and in-app transactions, businesses are reaping the rewards. Here’s a look at just how much money is pouring into the app economy.
- Mobile app revenue is skyrocketing
- Free apps still dominate the market
- Development is getting smarter and faster
- Conversion rates vary widely across categories
1. Mobile App Revenue Is Skyrocketing
Apps have become the engine of digital revenue. With app revenue set to hit $613 billion in 2025, in-app purchases, subscriptions, and booming verticals like generative AI are redefining how brands monetize experiences.
Here are some ways to ensure your app earns its share of that revenue:
- Build monetization into your product from day one, not after launch.
- Target high-growth categories like AI, streaming, and gamified utilities.
- Focus UX around conversion triggers like onboarding and loyalty rewards.
- Leverage personalized pricing and AI-driven recommendations.
- Combine subscriptions, in-app purchases, and ad revenue for maximum profitability.
- Use A/B testing to tweak pricing, upgrade prompts, and reward structures to maximize conversions without alienating users.
Here’s some more data around app revenue worth noting:
- Mobile app revenue is forecasted to grow from $522.7 billion in 2024 to $673.8B in 2027.
- In-app purchases and subscriptions brought in $124 billion+ in 2024.
- Generative AI app revenue surged 200% to $1.1B in 2024, as per Sensor Tower’s State of Mobile 2025 report.
- iPhone users spend twice as much per app as Android users.
- 442 apps and games released in 2024 (representing 9% of total new releases) closed out the year with $1 million or more in gross revenue.
2. Free Apps Still Dominate the Market
A staggering 97% of mobile apps are free to download, proving the freemium model still dominates. But without a compelling user experience, free ultimately means forgettable. Since users have more options than ever, they have little patience for apps that don't deliver immediate value.
To compete in a sea of free apps, you need to do the following well:
- Offer instant value in your first session to avoid early drop-off.
- Use subtle nudges and upsells to convert free users into paying ones.
- Optimize for App Store visibility with ASO and regular updates.
- Ensure seamless navigation, fast load times, and a bug-free experience to prevent churn.
- Encourage user reviews, referrals, and in-app social sharing to build trust and drive organic installs.
- If your app is ad-supported, make sure ads are non-intrusive and relevant.
Here’s what the numbers say about app saturation:
- 2M+ apps are live on Google Play.
- 1,200+ new apps launch daily across platforms.
- Over 1M apps were abandoned in 2024 after going 2+ years without updates.
3. Development Is Getting Faster and Smarter
Low-code development is scaling fast. The global low-code development platform market was valued at $28.75 billion in 2024 and is projected to reach $264.4 billion by 2032, growing at a CAGR of 32.2%.
This means big changes in terms of how apps are developed. These platforms reduce development time and unlock flexibility for startups, enterprises, and internal teams alike.
“By providing drag-and-drop UI components and connectors, developers and even non-technical users can incorporate AI functionalities into their apps,” explains Appery.io CEO Alexander Antsypov.
Here’s why low-code development is no passing fad:
- Developers can use low-code to accelerate MVPs or internal tool builds.
- Low-code frees up engineering resources for mission-critical features.
- Teams can iterate faster with visual workflows and modular integrations.
- Low-code applications can scale efficiently without major redevelopment efforts.
- Low-code empowers non-technical users to contribute to app development, reducing dependency on IT and enabling cross-functional collaboration.
More data that reveals the scale of this trend:
- The global low-code development platform market was valued at $28.75 billion in 2024 and is projected to grow at a CAGR of 32.2%, reaching $37.39 billion in 2025 and $264.4 billion by 2032.
- Searches for “low-code” have grown 146% in 5 years.
- The low-code and digital process automation (DPA) market grew 21% from 2019 to 2023.
4. Conversion Rates Vary Widely Across Categories
When it comes to converting views into installs, Google Play edges out the App Store with an average conversion rate (CVR) of 27.3%, compared to 25% on the US App Store, according to AppTweak. But averages only tell part of the story, as conversion performance swings dramatically depending on the app category and platform.
If you're looking to boost your install rate, here’s what actually moves the needle:
- Optimize your store listings (icon, screenshots, and copy) to match user intent and platform expectations.
- What works for a Navigation app likely won’t work for a Board Game so test creatives by category.
- Use install rate benchmarks to guide your goals instead of aiming for a one-size-fits-all CVR.
- Adapt your app store assets, descriptions, and keywords for different regions to improve discoverability and appeal.
- Leverage in-store events, limited-time offers, and influencer collaborations to drive spikes in installs and engagement.
Here’s a closer look at how category affects performance, based on data from AppTweak:
- On the App Store, the Navigation category had the highest CVR at 115%, which suggests users who see it are already searching with strong intent, while Board Games had the lowest at just 1.2%.
- On Google Play, Auto & Vehicles apps led with a 70.5% CVR, while Board Games again ranked lowest at 7.3%.
- The average install rate across all categories on the App Store was 3.8%, with Navigation apps again leading, and Family, Puzzle, and Board Games at the bottom with just 0.6%.
- Games is the biggest category in terms of the most available apps on the Apple Store (11.86%), followed by Business (10.11%), Utilities (9.73%), and education (9.56%).
User Behavior and Engagement
What makes users hit "download" — and what makes them uninstall? These insights show how users engage with apps and what keeps them coming back.
- Users are living inside apps
- User growth is being driven by entertainment
- Most apps lose users within the first month
- Early engagement predicts long-term success
1. Users Are Living Inside Apps
88% of mobile time is spent in apps, not browsers. That makes apps the most imporant channel for reaching and retaining mobile users. If your mobile strategy is browser-first, you're likely missing key moments of interaction.
Here’s how to create an experience users will keep coming back to:
- Treat your app like a content hub, not a static product.
- Use personalization and micro-interactions to keep users engaged.
- Design habit loops to build daily or weekly usage patterns.
- Streamline the sign-up process, highlight key features early, and provide guided walkthroughs to ensure users see value fast.
- Send timely, relevant, and personalized notifications that enhance the user experience rather than disrupt it.
- Ensure a smooth transition between your app, email, and social channels to maintain continuous engagement.
More stats that highlight where attention really lives:
- iPhone users spend twice as much per app as Android users.
- 64% of Gen Z TikTok users said they have used the platform as a search tool.
- In December 2024, YouTube led all social platforms in the US with a 76% mobile audience reach, ahead of Gmail (69%) and Facebook (68%) in second and third place.
2. User Growth Is Being Driven by Entertainment
TikTok is projected to reach 955 million users in 2025, setting the pace for how apps engage, entertain, and retain. User behavior shifts and the growing dominance of video content, brands need to think carefully about evolving the way they build and promote apps.
Here some ways you can stay relevant in a TikTok-shaped world:
- Take cues from TikTok’s UX to improve app stickiness.
- Use short-form video content to drive app discovery and awareness.
- Design with Gen Z in mind — speed, entertainment, and authenticity win.
- Introduce streaks, rewards, and interactive elements that encourage repeat engagement and word-of-mouth growth.
- Deliver hyper-personalized content and app experiences.
- Foster a creator-friendly environment where users can contribute content, driving organic reach and retention.
Here’s some more data on the top performers:
- According to AppFigures, Instagram had 48 million installs in December 2024, followed closely by TikTok with 45 million.
- Temu is a clear favorite among shopping apps, with 27 million downloads, as per AppFigures.
- Users spend most of their time on social networking apps, averaging 44 minutes a day.
- First-time installs of SVOD and OTT streaming apps on mobile in Q1 of 2024 were 54% higher than they were in early to mid-2020, a period marked by explosive growth in the category.
3. Most Apps Lose Users Within the First Month
Retention is where most apps fail. By day 30, the average Android app retains just 2.1% of users, while iOS apps fare slightly better at 3.7%. A sharp drop-off within the first month is the norm, which means teams must prioritize ongoing value, not just acquisition. Successful apps focus on building habits early and timely engagement to keep users coming back.
Here’s how to improve your app’s staying power:
- Make onboarding seamless and intuitive.
- Use push notifications and personalized content to re-engage users.
- A/B test retention strategies early and often.
- Introduce rewards, progress tracking, or exclusive content that encourages daily or weekly engagement.
- Integrate social sharing, leaderboards, or peer interactions to increase engagement and loyalty.
- Monitor drop-off points, analyze user feedback, and iterate on features to enhance satisfaction.
The retention gap is clear across platforms, as these figures show:
- iOS apps retain 3.7% of users by day 30, slightly outperforming Android, which drops to just 2.1%.
- While both see steep drop-offs, iOS starts slightly stronger with 23.9% day-one retention versus Android's 21.1%, as per Business of Apps’ report.
- Annual subscriptions keep 28% of users after a year; monthly subscription models retain 12%, and weekly plans keep only 3.5%.
4. Early Engagement Predicts Long-Term Success
Users who engage weekly are 90% more likely to stick around long-term, proving that weekly engagement is a leading indicator of retention. If you can bring users back consistently in week one, you’re more likely to build lasting habits.
Here’s how to build a weekly-use app:
- Incentivize return visits with rewards, streaks, or new content.
- Identify early users and keep them engaged with added value.
- Use analytics to find and fix drop-off points after the first session.
- Leverage push notifications, email reminders, or in-app messages to prompt users at the right moments.
- Encourage user interaction through forums, leaderboards, or collaborative features.
- Reduce barriers to entry with intuitive UI and one-tap action.
These stats highlight the importance of early (week one) engagement:
- AppFlyer’s 2024 figures indicate that the average app retention rate drops to 21% after the initial 24 hours, decreases to 7.5% by day 10, and further declines to 1.89% after 90 days.
- As AppFlyer suggests, a healthy DAU/MAU ratio is 20–25%.
- Only 16% engage with apps daily, with news apps seeing the highest at 32%.
Trust and Security
As cybersecurity concerns rise, transparent and proactive security practices are now a core feature. Trust is no longer optional, and users expect built-in protection. This is why Google scans 125 billion apps daily for security threats.
Here’s how to build trust through security:
- Be clear about data collection and permissions.
- Update frequently to patch vulnerabilities.
- Highlight your app’s security features in-store listings and onboarding.
- Implement end-to-end encryption for sensitive data.
- Enable biometric and multi-factor authentication.
- Allow users to manage privacy settings, delete their data easily, and opt out of tracking if they choose.
Why security should be part of your user experience:
- 33% of users quit social platforms over privacy concerns.
- Further to Cisco’s findings, 46% of users feel they can’t effectively protect their data.
- Google Play Protect scans 125 billion apps daily to help protect users from malware and unwanted software.
App Development Statistics: Final Words
Brands need to think beyond downloads if they want to succeed in an app landscape that is more competitive, more lucrative and more user-driven than ever. The real challenge (and opportunity) lies in creating apps that people trust, use, and return to daily.
Whether you're launching your first product or optimizing your tenth, getting the right expertise behind your app development process is the key to success.
App Development Statistics FAQs
1. How long does it take to build a mobile app in 2025?
With traditional development, timelines can range from 3 to 9 months (depending on app complexity). However, low-code platforms and reusable components can significantly reduce that window, with some MVPs able to launch in 4 to 6 weeks with the right tools and team.
2. What are the biggest challenges facing new app developers today?
Beyond technical execution, the biggest challenges include:
- User acquisition costs
- Poor retention
- Monetization strategy
- Standing out in saturated app stores
Success now hinges as much on post-launch strategy (ASO, engagement, security) as on development itself.
