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The Future of the Mobile App Market: Growth, Shakeups, and Changing Revenue Trends

Exciting projections reveal a promising future for the worldwide mobile app market. Anticipated to reach 189B installs and generate $186B in revenue by 2027, the industry is poised for remarkable growth. Key highlights include a shift in revenue distribution from mobile games to Entertainment and Photo & Video apps, the rise of Brazil as a dominant player surpassing the United States, and China's transition in market size.


In Sensor Tower’s latest Mobile Market Forecast, exciting projections for the worldwide mobile app market unveil a promising future. Anticipated to reach 189B installs and generate $186B in revenue by 2027, the mobile app industry is poised for remarkable growth. Key highlights from the forecast include revenue trends, market shakeups, and the rise of new app categories.

Global Revenue Growth and App Store Dominance

The mobile app industry is on track for remarkable growth, with a projected 8.4% compound annual growth rate in global user spending. This surge in spending is anticipated to drive a significant 50% increase in revenue compared to the total revenue of $124 billion recorded in 2022.

While both the App Store and Google Play store will contribute to this growth, the App Store is set to take the lead and shape the future of the mobile app market. With its robust ecosystem and user base, the App Store is positioned to be the primary driver behind the rise in revenue.

While the Google Play store will also experience growth, the App Store's dominant position indicates its significance in shaping the future landscape of the mobile app market. Businesses and developers should carefully consider the App Store's potential and tailor their strategies to leverage its strong revenue-generating capabilities.

As the global mobile app market continues to expand, the App Store's dominance underscores the importance of understanding its unique dynamics and seizing the opportunities it presents. By staying attuned to consumer trends, focusing on user experience, and delivering innovative and engaging apps, businesses can position themselves for success in the thriving mobile app ecosystem.

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Decline of Mobile Game Revenue as Entertainment and Photo & Video Categories Take the Lead 

The revenue landscape within the App Store is undergoing a notable transformation, marked by a decline in the dominance of mobile games. Projections indicate a significant decrease in the proportion of revenue generated by games, dropping from 58% in 2022 to 47% in 2027. This shift reflects changing consumer behavior and preferences, as spending on apps in the Entertainment and Photo & Video categories takes center stage.

One of the driving forces behind this shift is the increasing popularity of short-form video content. Platforms like YouTube and TikTok have captivated audiences worldwide, creating a surge in demand for apps that enable users to consume and produce short-form videos. As users spend more time engaging with video content, there is a natural inclination to invest in apps that enhance their video creation and editing capabilities. This surge in demand for video and photo editors further contributes to the evolving revenue landscape.

It is crucial for businesses to recognize this shifting revenue landscape and adjust their strategies accordingly. While mobile games will still remain a significant source of revenue, diversifying into the Entertainment and Photo & Video categories can provide a competitive advantage and tap into a rapidly expanding market. By creating compelling apps that offer intuitive video editing tools, immersive viewing experiences, and seamless content sharing capabilities, companies can position themselves at the forefront of this revenue transformation.

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Brazil's Rise and China's Transition in the Mobile App Market

Over the next five years, significant shifts in market size are anticipated. Brazil is predicted to overtake the United States as a dominant player, reflecting a rapidly expanding mobile app market. Additionally, Pakistan's rise to the 8th position in 2027 showcases its increasing influence and potential. China is expected to lose its position as the fifth largest market by installs, falling to 8th place. This shift suggests changing dynamics within China's mobile app market and highlights the evolving nature of consumer preferences and market trends.

These market shakeups emphasize the dynamic nature of the mobile app industry, where regional factors, consumer behaviors, and market conditions contribute to fluctuations in rankings and market sizes. Businesses and developers should closely monitor these trends and adapt their strategies to capitalize on emerging opportunities in growing markets like Brazil and Pakistan while navigating transitions in established markets like China.

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The Mobile Market Forecast offers an optimistic outlook for the mobile app industry, showcasing remarkable growth in revenue and downloads. With unprecedented expansion on the horizon, it is essential for brands and developers to adapt to shifting consumer preferences and capitalize on emerging opportunities.

As revenue distribution undergoes a significant shift from mobile games to Entertainment and Photo & Video apps, businesses must realign their strategies to meet evolving user demands. By leveraging Sensor Tower's accurate and innovative intelligence, companies can stay ahead of the curve in the rapidly evolving digital economy.

For a comprehensive understanding of the mobile industry's future landscape, download the complete Mobile Market Forecast report below and gain valuable insights to propel your success in the dynamic mobile app market.

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Yuwen Huang

Written by: Yuwen Huang, Marketing Data Scientist

Date: July 2023