Record $32 Billion Spent on Apps Globally in Q1 2021: Insights
A recent report has unveiled that consumers globally spent a record $32 billion on in-app purchases across iOS and Google Play during the first quarter of 2021. This surge represents a remarkable 40% increase compared to the same quarter last year, marking it as the most substantial quarter in terms of app spending.
Unprecedented Growth Amidst the Pandemic
The accelerated growth in app spending can be attributed to the Covid-19 pandemic, which led millions to stay at home, resulting in increased smartphone usage. App Annie, an app analytics firm, noted that consumers spent approximately $9 billion more on apps and games in Q1 2021 compared to Q1 2020.
Platform Growth and Spending Trends
The growth in app spending was evenly distributed between iOS and Google Play. On iOS, consumer spending surged by 40% year-over-year to reach $21 billion, mirroring a similar growth percentage on Google Play, where spending reached around $11 billion.
Additionally, total app downloads also experienced a significant uptick, rising by about 10% to reach 31 billion across both platforms in the quarter.
Dominance of Gaming in App Market
Gaming emerged as the dominant category in the app market during Q1 2021. With gamers downloading approximately a billion titles every week, total consumer spending on gaming skyrocketed to $22 billion.
While iOS gamers contributed $13 billion to this figure (a 30% increase from the previous year), Google Play gamers spent $9 billion (a 35% increase).
Mobile Gaming’s Phenomenal Growth
The report highlighted that mobile gaming is on track to achieve a staggering $120 billion in consumer spending in 2021, surpassing all other gaming formats combined by 1.5 times.
Moreover, specific categories saw robust growth in spending. On Google Play, Games, Social, and Entertainment witnessed the strongest quarter-over-quarter growth, while on iOS, Games, Photo, and Video, and Entertainment were the largest categories by growth.
Overall, the first quarter of 2021 showcased the resilience and expansion of the global app market, propelled by changing consumer behaviors and the increasing popularity of mobile gaming and entertainment.