Key takeaways
- Mobile customers are predicted to spend $34.1 billion in app stores in the first quarter of 2023.
- iOS accounts for 65% of overall app store spend, with the non-gaming category accounting for 71%.
- Consumers downloaded 38.4 billion apps in Q1 2023, second only to Q3 2022's 38.7 billion.
The importance of apps to consumers remains undeniable in 2023. Despite economic challenges, the global app market is demonstrating remarkable resilience. In Q1 2023, mobile consumers are expected to spend an astounding $34.1 billion in app stores, the highest quarterly spending on record.
The high comes after the dip
According to the Q3 2022 Market Pulse Report, consumer spending fell slightly year on year, from $33.7 billion in Q3 2021 to $32.4 billion in Q3 2022. Now, iOS appears to be recovering at a 5% year-over-year increase, generating $21.8 billion, while Google Play increased at a 7% year-over-year increase, generating around $12.3 billion.
When it comes to app store spending, iOS users continue to outpace their Android counterparts by a wide margin. iOS accounts for 65% of total app store outlay, rising to 71% in the non-gaming sector due to rising demand for in-app subscriptions and hit apps like Calm.
In terms of consumer spending, the Games, Entertainment, and Social categories were the most popular among Google Play users. Meanwhile, the most significant quarter-over-quarter growth was seen in Video Players and Editors, House & Home, and Health & Fitness, with increases of 21%, 21%, and 20%, respectively.
Regionally, the United States, Japan, and South Korea contributed the most to consumer spending in the app market.
iOS dominates, US and China lead markets in Q2
Consumers downloaded 38.4 billion apps in Q1 2023, second only to Q3 2022's 38.7 billion.
iOS witnessed the greatest increase, with anticipated installs increasing 12% year on year to about 9.2 billion. Google Play installs increased by 1% year on year to 29.2 billion.
India and Brazil had the most downloads, while Turkey, Russia, and Iraq witnessed considerable growth on Google Play. China and the United States were the top iOS markets, with the United States, Brazil, and Japan experiencing the most quarterly growth.
In Q1 2023, the most downloaded categories on iOS were Gaming, Utilities, and Picture & Video. Meanwhile, absolute downloads increased the greatest in Gaming, Health & Fitness, and Travel. Health & Fitness, Navigation, and Catalogs had the biggest percentage gain QoQ, with increases of 17%, 15%, and 12%, respectively.
In the first quarter of 2023, Google Play users downloaded a large number of Games, Tools, and Entertainment apps. Productivity, Books & Reference, and Education, on the other hand, showed the largest absolute growth, with quarterly increases of 12%, 10%, and 9%, respectively.
Naturally, the top app spenders and downloaders remain mostly the same, with unicorn social, chat, and streaming applications such as Facebook, Snapchat, WhatsApp, and Netflix dominating the lists.
Nonetheless, there were a few tiny adjustments worth noticing in the Q1 2023 charts. TikTok surpassed Instagram to become the most downloaded app in the world. TikTok also led the consumer expenditure table, indicating the app's sustained popularity and expansion.
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